DOMS Industries filed preliminary papers with SEBI to raise Rs 1,200 crore via IPO

To raise Rs 1,200 crore through an initial public offering (IPO), stationery manufacturer DOMS Industries filed preliminary documents to capital markets regulator SEBI on Tuesday.

According to the draft red herring prospectus (DRHP), the company's first public offering would include a fresh issuance aggregate of up to Rs 350 crore and an offer (OFS) for sale by promoter’s aggregate of up to Rs 850 crore.

Fabbrica Italiana Lapis ed Affini SpA, a corporate promoter, would sell shares under the OFS at Rs 800 crore, while Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will sell shares at Rs 25 crore each.

The funds obtained through the new issuance would be used for general business reasons as well as the construction of a new manufacturing facility to increase the company's capacity to produce a variety of writing instruments, including watercolor pens, markers, and highlighters.

The company creates, develops, produces, and markets a wide variety of stationery and art products, primarily under the flagship brand "DOMS" and sub-brands "C3," "Amariz," and "Fixy Fix," both domestically and abroad in more than 40 nations, comprising the US, Africa, Asia Pacific, Europe, and Middle East region.

Scholastic stationery, scholastic art materials, paper stationery, kits and combinations, office supplies, hobby and craft supplies, and fine art items are among the seven categories into which the products are categorized. The company's primary goods, such as pencils and boxes for mathematical instruments, have a market share by value of 29% and 30%, respectively, as of FY23.

The book-running lead managers for the issue are JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities.

Source: Media Reports