Doms Industries lists at over 77% premium exceeding grey market expectations

• The stock listed on D-Street at ₹1,400 as compared to an issue price of ₹790 per share.
• The grey market had expected a 62% listing gain from the stock.
• The market cap of the company is at ₹8,496.21 crore according to BSE.

Stationary major Doms Industries made its D-street debut at a 77% premium on Wednesday. The stock has listed at ₹1,400 as compared to the issue price of ₹790 per share. The grey market had expected a 62% listing gain from the stock.

The market cap of the company is at ₹8,496.21 crore according to BSE.

The ₹1,200 crore offer was subscribed as subscribed 93 times the shares on offer. Qualified Institutional Buyer (QIB) portion of the issue was subscribed 115 times the shares on offer. Retail investor portion was subscribed 69 times, and non-institutional investor (NII) portion was subscribed 66x.

The issue had a price band of ₹750-790 per share. The company raised ₹537.7 crore from 55 anchor investors before opening it for the public.

The issue is a combination of fresh equity to the tune of ₹350 crore and offer for sale component is at around ₹850 crore. The company intends to use net proceeds from the fresh issue to set-up a new manufacturing facility in addition to general corporate purposes.

Dominant player with high brand recall

The Gujarat-based stationery and art product maker is one of India’s largest such players with a wide distribution reach. It has a 12% market share in the organised stationery market with around 30% share in pencils and ‘mathematical instrument boxes’.

“Doms in a different league altogether. Its distribution is good, and has shown a phenomenal growth since the Covid pandemic and its fundamentals are in place,” Arun Kejriwal, founder at Kejriwal Research & Investment Services, tells Business Insider India.

It also sells other scholastic stationery, art material, paper stationery, office supplies and more.

“They have the widest breadth of product categories amongst their peers in India. Their presence across multiple categories and price points has enabled them to be the fastest growing such company in terms of revenue,” said a report by Anand Rathi.

Its listed peers in the market are Kokuyo Camlin, Linc and Pidilite Industries.