The IPO of DOMS Industries Ltd, a leading player in the stationery and art material industry in India, opened for subscription on December 13, 2023, and will close on December 15, 2023. With a public issue worth ₹1,200 crore, the response from investors has been robust, especially in the first two days of subscription.
Here are key details and updates on DOMS IPO:
1. **Issue Details:**
– IPO opened on December 13, 2023, and closes on December 15, 2023.
– The IPO size is ₹1,200 crore, and the price band is set at ₹750 to ₹790 per equity share.
2. **Grey Market Premium (GMP):**
– The grey market, reflecting over-the-counter trading, has shown bullish sentiments.
– DOMS Industries Limited shares are trading at a premium of ₹502 in the grey market.
– The GMP has increased by ₹51 from ₹451 on the IPO’s subscription opening date.
3. **Subscription Status:**
– After two days of bidding, the IPO is oversubscribed 15.20 times.
– The retail portion has a strong oversubscription of 41.18 times.
– The Non-Institutional Investors (NII) portion is oversubscribed 25.83 times.
– The Qualified Institutional Buyers (QIB) portion is subscribed 1.18 times.
*(By 11:36 AM on the third day of bidding)*
– The IPO is oversubscribed 20.40 times.
– The retail portion is oversubscribed 51.41 times.
– The NII portion is oversubscribed 38.14 times.
– The QIB segment has received bids for 1.30 times against its offer.
4. **Analyst Recommendations:**
– Analysts recommend a ‘subscribe’ tag for the DOMS IPO.
– Reasons include the company’s leadership position, strong brand recall, innovative products, robust manufacturing infrastructure, and a strategic partnership with FILA for global market access.
– Concerns include the fully priced nature of the issue at a P/E multiple of around 30x annualized FY24 earnings.
5. **Allotment and Listing:**
– With T+3 listing becoming mandatory from December 1, 2023, the DOMS IPO allotment date is expected on December 18, 2023.
– The listing date is anticipated to be on December 20, 2023.
In conclusion, DOMS Industries Ltd, a major player in the stationery and art material industry, has witnessed strong investor interest during its IPO subscription period. The grey market premium, subscription figures, and analyst recommendations indicate positive market sentiment. Investors are advised to consider these factors when making decisions related to the DOMS IPO.
