DOMS Industries IPO: Institutional investors bought shares of the company worth Rs 537.75 crore through an anchor book
The Rs 1,200-crore DOMS Industries IPO was subscribed thrice within hours of its opening on December 13, with bids received for 2.71 crore shares out of an issue size of 88.37 lakh.
Private investors had bought 11.5 times their allocated share quota. The portion reserved for non-institutional investors was subscribed 3.45 times, while qualified institutional buyers got off to a slow start.
Ahead of the IPO launch, institutional investors bought shares of the stationery maker worth Rs 537.75 crore.
Also Read: Doms Industries IPO: Investors buy shares worth Rs 538 through anchor book, issue begins on December 13
Participants in the anchor book included Abu Dhabi Investment Authority, Optimix Wholesale Global Emerging Markets, Ashoka Whiteoak Emerging Markets, Fidelity Funds, Goldman Sachs, Theleme India Master Fund and Belgrave Investment Fund.
Anchor investors are institutional investors who are asked to subscribe to the shares before the start of an IPO to increase investor confidence.
Also Read: DOMS Industries IPO: Will this stationery supplier make a name for itself on the stock exchanges?
The IPO, which will close on December 15, comprises a fresh issue of 44.3 lakh shares worth Rs 350 crore and an offer for sale (OFS) of 1.07 crore shares. FILA – Fabbrica Italiana Lapised Affini SpA, the corporate promoter, plans to offload shares of OFS worth Rs 800 crore. The average acquisition cost of these shares was Rs 101.53 each. The price band for the issue has been set at Rs 750-790 per share.
Promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will sell shares worth Rs 25 crore each.
The company has reserved 75 percent of the net offering volume for qualified institutional buyers, 15 percent for high net worth individuals (non-institutional investors) and the remaining 10 percent for retail investors.
Also Read: DOMS Industries IPO: Should you subscribe to Rs 1,200 crore issue?
DOMS will use the net proceeds in part to fund a new facility for a wide range of writing instruments, watercolor pencils, markers and highlighters. The remaining funds will be used for general corporate purposes.
Also Read: Doms Industries IPO: 10 things you should know before subscribing to an issue worth Rs 1,200 crore
DOMS Industries designs, develops, produces and distributes a wide range of stationery and art products in the domestic market as well as in more than countries.
The company is the second largest player in the Indian branded stationery and art products market. DOMS operates 13 manufacturing facilities in Umbergaon, Gujarat, spread over 34 acres.
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