Assignment IPO
Assignment IPO
Assignment IPO
ASSIGNMENT
Introduction
A Brief About IPO
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold
to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten
by one or more investment banks, who also arrange for the shares to be listed on one or more stock
exchanges. Through this process, colloquially known as floating, or going public, a privately held
company is transformed into a public company. Initial public offerings can be used to raise new equity
capital for companies, to monetize the investments of private shareholders such as company founders or
private equity investors, and to enable easy trading of existing holdings or future capital raising by
becoming publicly traded.
Understanding The Need for IPO Process
A company can change itself from a privately held body to a publicly traded entity through the process of
Initial Public Offering (IPO). Typically, companies offer IPO to raise money and get access to liquidity by
offering their stocks/shares to the public. Companies must abide by the IPO process in India - as
stipulated by stock exchanges - before its shares are eligible to be publicly traded. This process is often
complicated and long drawn.
IMPORTANCE OF IPO
the importance of an Initial Public Offering (IPO) lies in:
Capital Infusion: IPOs allow companies to raise capital from the public markets.
Liquidity: Provides founders, early investors, and employees with an opportunity to monetize
their holdings.
Enhanced Visibility: Raises the company's profile, credibility, and industry standing.
Acquisition Currency: Publicly traded shares can be used for acquisitions.
Employee Incentives: Equity-based compensation can attract and retain talent.
Valuation Benchmark: Establishes a market value for the company.
Exit Strategy: Provides an exit route for venture capitalists and private equity investors.
Regulatory Oversight: Subjects the company to increased regulatory scrutiny and transparency
requirements.
DOMS IPO
About DOMS
OMS Industries Limited (DIL) (stylized as DOMS) is an Indian stationery and art materials
manufacturing company, headquartered in Valsad, Gujarat. Its products include wooden pencils, color and
polymer pencils, mathematical and drawing instruments, wax crayons and oil pastels, stationery kits and
combos, office supplies, hobby and craft supplies, and fine art products. It works under a multinational
Italian company Fila Group.
DOMS was founded in 1976 as a partnership firm, R.R. Industries, by Rasiklal Amritlal Raveshia and
Mansukhlal Jamnadas Rajani. In 2005, the company launched its flagship brand, DOMS.
In 2012, DOMS entered into a strategic partnership with F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A
(F.I.L.A.), Italy, a listed Italian multinational company engaged in the supply of art materials and
stationery products. This partnership enabled DOMS to gain access to international markets for
distribution of its products.
In 2017, Famous Innovations was awarded to be responsible for developing and executing creative
campaigns for DIL's stationery portfolio.
Doms also acquired 30% stake in toy company ClapJoy.
In 2023, Doms launched its initial public offering (IPO) worth ₹1,200 crore (US$150 million) and listed
on BSE and NSE.
SWOT analysis of Doms Industries in India:
Strengths:
Established Brand: Doms Industries likely enjoys a well-known brand presence in the Indian market,
which can facilitate customer trust and loyalty.
Product Range: Doms Industries may offer a diverse range of stationery and art supplies, catering to
various customer needs and preferences.
Distribution Network: A strong distribution network across India can ensure widespread availability of
Doms Industries' products, enhancing market reach.
Manufacturing Capability: If Doms Industries has efficient manufacturing facilities, it can produce goods
cost-effectively and maintain quality standards.
Weaknesses:
Limited Market Penetration: Doms Industries may face challenges in penetrating certain segments of the
Indian market due to competition or distribution constraints.
Pricing Pressures: Intense competition in the stationery and art supplies market in India may lead to
pricing pressures, impacting profit margins.
Brand Perception: Negative perceptions or issues related to product quality or customer service could
undermine the company's reputation and competitiveness.
Dependence on Imports: If Doms Industries relies heavily on imported raw materials, it may be
vulnerable to currency fluctuations and supply chain disruptions.
Opportunities:
Growing Education Sector: India's expanding education sector presents opportunities for Doms Industries
to supply stationery and art materials to schools, colleges, and educational institutions.
E-commerce Growth: The rapid growth of e-commerce platforms in India offers Doms Industries avenues
to reach a broader customer base and expand online sales.
Innovation and Product Development: Investing in innovation and developing new products tailored to
the Indian market's preferences can help Doms Industries stay competitive and capture market share.
Rural Market Expansion: Penetrating rural and semi-urban markets in India can unlock significant growth
opportunities for Doms Industries, considering the large population residing in these areas.
Threats:
Intense Competition: Doms Industries faces competition from both domestic and international players in
the Indian stationery and art supplies market, which can exert pressure on market share and profitability.
Economic Volatility: Fluctuations in the Indian economy, inflation rates, and consumer spending patterns
can impact demand for discretionary items like stationary and art supplies.
Regulatory Compliance: Adhering to evolving regulatory requirements related to manufacturing
standards, taxation, and environmental norms poses challenges for Doms Industries.
Counterfeit Products: The prevalence of counterfeit or low-quality stationary products in the Indian
market can undermine Doms Industries' brand reputation and erode customer trust.
By leveraging its strengths, addressing weaknesses, capitalizing on opportunities, and mitigating threats,
Doms Industries can position itself for sustainable growth and success in the dynamic Indian market.
15,189,873 shares
Total Issue Size
(aggregating up to ₹1,200.00 Cr)
4,430,380 shares
Fresh Issue
(aggregating up to ₹350.00 Cr)
Anchor lock-in period end date for 50% shares (30 Days) January 17, 2024
Anchor lock-in period end date for remaining shares (90 Days) March 17, 2024
S-HNI
15 270 ₹213,300
(Min)
S-HNI
70 1,260 ₹995,400
(Max)
B-HNI
71 1,278 ₹1,009,620
(Min)
QIB 122.16
NII 70.06
Retail 73.38
Total 99.34
Open - ₹1,302.05
Low - ₹1,330.85
High - ₹1,434.25