Jobaaj Stories
Doms Industries, a leading manufacturer of stationery and art products, is making a significant move in the financial world. Backed by the Italian giant, FILA (Fabbrica Italiana Lapised Affini S.p.A.), Doms Industries has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on August 22. Their ambitious goal is to raise Rs 1,200 crore through an initial public offering (IPO).
This IPO is set to be a game-changer for the Gujarat-based company. The public issue comprises a fresh issuance of shares worth Rs 350 crore and an offer-for-sale of Rs 850 crore by promoters. FILA, as the corporate promoter with a majority 51 percent shareholding, will offload shares worth Rs 800 crore via an offer for sale (OFS). Meanwhile, domestic promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will each be selling shares worth Rs 25 crore through OFS.
However, there's an intriguing twist. Doms Industries is considering a pre-IPO placement of Rs 70 crore before filing the red herring prospectus with the Registrar of Companies (ROC). If this pre-IPO placement is successfully executed, the size of the fresh issue will be reduced accordingly.
Doms Industries is not just a local player; it has a global footprint. The company sells its products both in the domestic market and in over 40 countries. Impressively, it claims a substantial market share, boasting 29 percent in pencils and an impressive 30 percent in mathematical instrument boxes, both by value, in FY23.
This IPO marks a significant moment for both Doms Industries and its backers, FILA. It will be closely watched by investors and industry experts alike, as it could potentially reshape the stationery and art products sector in India and beyond. Stay tuned for further developments as this exciting financial venture unfolds.
