Name: - Debadipta Sanyal

Enrollment No: - 30112098

Topic: - A comparative study of Doms 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.

IPO Process Steps:

Step 1: Hiring Of an Underwriter or Investment Bank
To start the initial public offering process, the company will take the help of financial experts, like
investment banks. The underwriters assure the company about the capital being raised and act as
intermediaries between the company and its investors. The experts will also study the crucial financial
parameters of the company and sign an underwriting agreement. The underwriting agreement will usually
have the following components:
Details of the deal
Amount to be raised.
Details of securities being issued.
Step 2: Registration For IPO
This IPO step involves the preparation of a registration statement along with the draft prospectus, also
known as Red Herring Prospectus (RHP). Submission of RHP is mandatory, as per the Companies Act.
This document comprises all the compulsory disclosures as per the SEBI and Companies Act. Here’s a
look at the key components of RHP:
Definitions: It contains the definitions of the industry-specific terms.
Risk Factors: This section discloses the possibilities that could impact on a company’s finances.
Use of Proceeds: This section discloses how the money raised by investors will be used.
Industry Description: This section details the working of the company in the overall industry segment. For
instance, if the company belongs to the IT segment, the section will provide forecasts and predictions
about the segment.
Business Description: This section will detail the core business activities of the company.
Management: This section provides information about key management personnel.
Financial Description: This section comprises financial statements along with the auditor's report.
Legal and Other Information: This section details the litigation against the company along with
miscellaneous information.
This document must be submitted to the registrar of companies three days before the offer opens to the
public for bidding. Alongside, the submitted registration statement must be compliant with the SEC rules.
Post-submission, the company can make an application for an IPO to SEBI.
Step 3: Verification by SEBI:
Market regulator, SEBI, then verifies the disclosure of facts by the company. If the application is
approved, the company can announce a date for its IPO.
Step 4: Making An Application to The Stock Exchange
The company now has to make an application to the stock exchange for floating its initial issue.
Step 5: Creating a Buzz By Roadshows
Before an IPO opens to the public, the company endeavors to create a buzz in the market by roadshows.
Over a period of two weeks, the executives and staff of the company will advertise the impending IPO
across the country. This is basically a marketing and advertising tactic to attract potential investors. The
key highlights of the company are shared with various people, including business analysts and fund
managers. The executives adopt various user-friendly measures, like Question-and-Answer sessions,
multimedia presentations, group meetings, online virtual roadshows, and so on.
Step 6: Pricing of IPO
The company can now initiate pricing of IPO either through Fixed Price IPO or by Book Binding
Offering. In the case of the Fixed Price Offering, the price of the company’s stocks is announced in
advance. In the event of Book Binding Offering, a price range of 20% is announced, following which
investors can place their bids within the price bracket. For the bidding process, the investors have to place
their bids as per the company’s quoted Lot price, which is the minimum number of shares to be
purchased. Alongside, the company also provides for IPO Floor Price, which is the minimum bid price
and IPO Cap Price, which is the highest bidding price. The booking is typically open from three to five
working days and investors can avail the opportunity of revising their bids within the stipulated time.
After completion of the bidding process, the company will determine the Cut-Off price, which is the final
price at which the issue will be sold.

Step 7: Allotment of Shares

Once the IPO price is finalized, the company along with the underwriters will determine the number of
shares to be allotted to each investor. In the case of over-subscription, partial allotments will be made. The
IPO stocks are usually allotted to the bidders within 10 working days of the last bidding date.
Conclusion
Now that you know the IPO process steps and its importance, you can make informed decisions to invest
in IPOs. Also, have a look at India Infoline upcoming IPO calendar to aid your understanding on IPO. To
make prudent investment decisions, you will invariably be required to do a lot of legwork. This includes
selecting a trusted and reliable financial partner. You must select a stockbroking firm providing multiple
benefits such as smooth trading platforms, an all-in-one account to trade in all investment options, zero
Demat account opening and AMC charges, award-winning research, and so on.

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.

ABOUT DOMS IPO

DOMS IPO is a book-built issue of Rs 1,200.00 crores. The issue is a combination of fresh issue of 0.44
crore shares aggregating to Rs 350.00 crores and offer for sale of 1.08 crore shares aggregating to Rs
850.00 crores.
DOMS IPO bidding started from December 13, 2023 and ended on December 15, 2023. The allotment for
DOMS IPO was finalized on Monday, December 18, 2023. The shares got listed on BSE, NSE on
December 20, 2023.
DOMS IPO price band is set at ₹750 to ₹790 per share. The minimum lot size for an application is 18
Shares. The minimum amount of investment required by retail investors is ₹14,220. The minimum lot
size investment for sNII is 15 lots (270 shares), amounting to ₹213,300, and for bNII, it is 71 lots (1,278
shares), amounting to ₹1,009,620.
DOMS IPO Details

IPO Date December 13, 2023, to December 15, 2023

Listing Date December 20, 2023

Face Value ₹10 per share

Price Band ₹750 to ₹790 per share

Lot Size 18 Shares

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)

10,759,493 shares of ₹10

Offer for Sale
(aggregating up to ₹850.00 Cr)

Employee Discount Rs 75 per share

Issue Type Book Built Issue IPO

Listing At BSE, NSE

Shareholding pre issue 56,250,218

Shareholding post issue 60,680,598

DOMS IPO Reservation

DOMS IPO offers 15,126,581 shares. 4,537,975 (30.00%) to QIB, 2,268,987 (15.00%) to NII, 1,512,658
(10.00%) to RII and 6,806,961 (45.00%) to Anchor investors. 84,036 RIIs will receive a minimum of 18
shares and 2,801 (sNII) and 5,602 (bNII) will receive a minimum of 270 shares. (in case of
oversubscription)

Investor Category Shares Offered Maximum Allottees

Anchor Investor Shares Offered 6,806,961 (45.00%) NA

QIB Shares Offered 4,537,975 (30.00%) NA

NII (HNI) Shares Offered 2,268,987 (15.00%)

bNII > ₹10L 1,512,658 (10.00%) 5,602

sNII < ₹10L 756,329 (5.00%) 2,801

Retail Shares Offered 1,512,658 (10.00%) 84,036

Total Shares Offered 15,126,581 (100%)

DOMS IPO Anchor Investors Details

DOMS IPO raises Rs 537.75 crore from anchor investors. DOMS IPO Anchor bid date is December 12,
2023.
Bid Date December 12, 2023

Shares Offered 6,806,961

Anchor Portion Size (In Cr.) 537.75

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

DOMS IPO Timeline (Tentative Schedule)

DOMS IPO opens on December 13, 2023, and closes on December 15, 2023.

IPO Open Date Wednesday, December 13, 2023

IPO Close Date Friday, December 15, 2023

Basis of Allotment Monday, December 18, 2023

Initiation of Refunds Tuesday, December 19, 2023

Credit of Shares to Demat Tuesday, December 19, 2023

Listing Date Wednesday, December 20, 2023

Cut-off time for UPI mandate confirmation 5 PM on December 15, 2023

DOMS IPO Lot Size

Investors can bid for a minimum of 18 shares and in multiples thereof. The below table depicts the
minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount

Retail (Min) 1 18 ₹14,220

Retail (Max) 14 252 ₹199,080

S-HNI
15 270 ₹213,300
(Min)

S-HNI
70 1,260 ₹995,400
(Max)

B-HNI
71 1,278 ₹1,009,620
(Min)

DOMS IPO Promoter Holding

The promoters of the company are Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan
Mansukhlal Rajani Chandni Vijay Somaiya and Fabbrica Italiana Lapis ed Affini S.p.A

Share Holding Pre-Issue 100%

Share Holding Post Issue 74.97%

Objects of the Issue (DOMS IPO Objectives)

The net proceeds of the Fresh Issue, i.e., gross proceeds of the Fresh Issue less the offer expenses
apportioned to the Company ("Net Proceeds") are proposed to be utilised in the following manner:
1. Proposing to partly finance the cost of establishing a new manufacturing facility to expand its
production capabilities for a wide range of writing instruments, watercolour pens, markers, and
highlighters.
2. General corporate purposes.
DOMS IPO Subscription Status (Bidding Detail)
The DOMS IPO is subscribed 99.34 times on December 15, 2023 7:02:00 PM. The public issue
subscribed 73.38 times in the retail category, 122.16 times in the QIB category, and 70.06 times in the NII
category.

Category Subscription (times)

QIB 122.16

NII 70.06

bNII (bids above

71.27
₹10L)

sNII (bids below

67.65
₹10L)

Retail 73.38

Total 99.34

Total Application : 4,647,457 (55.30 times)

DOMS IPO Listing Details

Listing Date December 20, 2023

BSE Script Code 544045

NSE Symbol DOMS

ISIN INE321T01012

Final Issue Price ₹790 per share

Listing Day Trading Information

Price Details - ₹790.00

Final Issue Price - ₹1,400.00

Open - ₹1,302.05

Low - ₹1,330.85

High - ₹1,434.25

Last Trade - ₹1,326.05

DOMS Industries Limited Contact Details

DOMS Industries Limited
J-19, G.I.D.C,
Opp. Telephone Exchange
Umbergaon – 396 171, Dist. Valsad,
Phone: +91 74348 88445
Email: [email protected]
Website: https://domsindia.com/
DOMS IPO Registrar
Link Intime India Private Ltd

Phone: +91-22-4918 6270

Email: [email protected]
Website: https://linkintime.co.in/initial_offer/public-issues.html
DOMS IPO Lead Manager(s)
1. Jm Financial Limited (Past IPO Performance)
2. Bnp Paribas (Past IPO Performance)
3. ICICI Securities Limited (Past IPO Performance)
4. Iifl Securities Ltd (Past IPO Performance)
Questions and answers
1. What were the reasons for such a high oversubscription of the IPO?
ANSWER: - The high oversubscription of an IPO can typically be attributed to strong investor
interest driven by factors such as perceived growth potential, limited availability of shares, positive
market sentiment, attractive pricing, institutional and retail investor participation, favorable industry
trends, effective marketing, and FOMO (Fear of Missing Out). These factors collectively create
demand that exceeds the number of shares available, leading to oversubscription.
2. What were the reasons for the failure of the IPO?
ANSWER:- The failure of an IPO can stem from various factors such as market volatility, economic
downturns, unfavorable industry conditions, overvaluation, poor financial performance, regulatory
issues, lack of investor confidence, negative publicity, and mismanagement. These factors can lead to
weak investor demand, resulting in the IPO being undersubscribed or withdrawn altogether.