DOMS Industries Limited

About DOMS Industries Limited  Incorporated in 2006, DOMS Industries designs, develops, manufactures and sells a wide range of stationery and art products. As per reports, it is India’s second-largest player in the branded ‘stationery and art’ products market, with a market share of nearly 12% by value as of FY23. The company markets its products through its flagship brand ‘DOMS’ and other sub-brands, including ‘C3’, ‘Amariz’, and ‘Fixyfix’.  The company offers its products under seven categories, (i) scholastic stationery; (ii) scholastic art material; (iii) paper stationery; (iv) kits and combos; (v) office supplies; (vi) hobby and craft; and (vii) fine art products. Scholastic stationery and art material category contributed nearly 70% of total revenue in FY23.  These products are manufactured through company-owned manufacturing facilities located in Umbergaon, Gujarat and Bari Brahma, in Jammu and Kashmir. These products are distributed across pan-India through general and modern trade channels. Company also has a well established distribution network across 45 countries.  In the domestic market, the company has a network of over 120 super-stockists, 4,000+ distributors and a sales team of 500 personnel. They cover more than 1,20,000 retail touch points over 3,500 cities and towns.  The company has an exclusive tie-up with FILA, a listed Italian multinational supplier of various ‘art materials’ and ‘stationery products.’ It acts as a distributor and marketer for all categories of products, under their name and trademark, in India, Nepal, Bhutan, Sri Lanka, Bangladesh, Myanmar, and Maldives.  Between FY21 and FY23, it has seen a CAGR rise of 44% in its revenue from operations. It has also witnessed an EBITDA margin of 7%, 10% and 15% in FY21, FY22 and FY23, respectively. Moreover, the Indian stationery and art materials market is expected to grow at a CAGR of ~13% between FY23 and FY28 to reach a market value of ₹71,600 crore, which could benefit the company.  And now, DOMS Industries Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to partly finance the cost of establishing a new manufacturing facility to expand its production capabilities and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the DOMS Industries Limited IPO:     Company Name  DOMS Industries Limited   Company Type  Private    Company Established On  2006   DOMS Industries Limited IPO Opening Date  13th December 2023    DOMS Industries Limited IPO Closing Date  15th December 2023   DOMS Industries Limited IPO Allotment Status  18th December 2023    Credit of Shares to the Demat Account  19th December 2023   DOMS Industries Limited IPO Listing Date  20th December 2023    DOMS Industries Limited IPO Face Value  ₹10 per share   DOMS Industries Limited IPO Lot Size  18 shares    DOMS Industries Limited IPO Issue Size  Approx ₹1,200 crore   DOMS Industries Limited IPO to be Listed on  BSE, NSE    DOMS Industries Limited IPO Price band  ₹750 – ₹790 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 402 crore  ₹ 683 crore  ₹ 1,211 crore    Net Profit  ₹ -6.0 crore  ₹ 17.1 crore  ₹ 102 crore              Here’s a quick look at DOMS Industries Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Fastest-growing stationery and art material products company in India in terms of revenue over the period of FY20 to FY23.  Diverse price range and product category including 3,800 SKUs (Stock keeping units) as of 30 September 2023.  Strong brand recall and recognition by being awarded “The Economic Times Promising Brands 2021” and “India’s No. 1 Brand Award 2017”.  Robust and fully integrated manufacturing infrastructure, including procurement of raw materials, moulding, assembling, integration of subassemblies into finished products, quality control and testing of finished products.  The company operates 13 manufacturing facilities across Umbergaon, Gujarat, with an annual installed capacity of 4,734 million units as of 31 March 2023.  Multi-channel distribution network comprising general trade through stockists, distributors, wholesaler, retailer; modern trade through supermarkets, hypermarkets, mini markets, cash and carry stores, and e-commerce platforms; and large corporates, institutions, and other companies.  Strategic partnership with F.I.L.A. enabling access to global markets and product know-how.   Risks and threats   DOMS Industries operates in a fragmented industry with low barriers to entry.  Derives a significant portion of its sales from wooden pencils, accounting for 31% of gross product sales in FY23. Hence, any decline in sales or supply chain issues could adversely affect the company’s business.  Faces competition from unorganised and organised players like BIC Cello, Flair Writing Industries, Hindustan Pencils, Kokuyo Camlin and other domestic players.  Incurred a loss of ₹6.02 crore in FY21.  Has experienced negative cash flows from investing activities consecutively in the last three years.  Total borrowings amount to ₹152 crore as of 31 October 2023.            DOMS Industries Limited IPO details  |DOMS Industries Limited IPO date  According to the offer document filed by the company with the SEBI, the DOMS Industries IPO’s opening date – in other words, the DOMS Industries IPO launch date – will be 13th December 2023. The DOMS Industries IPO closing date is 15th December 2023. After this, investors will be updated about the allotment status on 18th December 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 19th December 2023. The DOMS Industries IPO listing date is 20th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |DOMS Industries Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The DOMS Industries IPO price band has been set between ₹750 and ₹790 per share. Interested investors can choose a price within this band to apply for the IPO.  The DOMS Industries IPO listing price will be determined on 20th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  |DOMS Industries Limited IPO Lot size  The DOMS Industries IPO details have been declared. The DOMS Industries IPO lot size is set at 18 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the DOMS Industries IPO issue size is approx ₹1,200 crore.           How to pre-apply for the DOMS Industries Limited IPO?  You can pre-apply for the DOMS Industries Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘DOMS Industries Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the DOMS Industries Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the DOMS Industries Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the DOMS Industries Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘DOMS Industries Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the DOMS Industries LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the DOMS Industries Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your DOMS Industries Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the DOMS Industries Limited IPO  To apply for the DOMS Industries Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the DOMS Industries Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the DOMS Industries Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.