Doms Industries IPO: The company intends to raise Rs 1,200 crore via maiden public issue which consists of a fresh issuance of shares worth Rs 350 crore, and an offer-for-sale of Rs 850 crore worth shares by the promoters.

Doms Industries IPO gets strong response on day 2

The IPO of stationery and art products maker Doms Industries has seen overwhelming response from the participants, even on the second day of bidding, December 14. The issue has been subscribed 15.2 times with investors buying 13.43 crore shares against IPO size of 0.88 crore, as per the subscription data published by exchanges.

Retail investors remained in the forefront, buying 41.18 times the allotted quota, followed by high networth individuals who picked 25.83 times shares against the reserved portion, while the part set aside for qualified institutional buyers was subscribed 1.18 times.

The participation by employees, too, was strong, as they bought 17.85 times the reserved quota.

The Umbergaon-based company has reserved Rs 5 crore worth shares for its employees, who will get shares at a discount of Rs 75 per share to the final issue price. The net offer size excluded employees' part.

Further, 75 percent of the net offer size has been booked for qualified institutional buyers, 15 percent for high networth individuals and the remaining 10 percent for retail investors.

Doms Industries, that gets 70 percent of its business from scholastic stationery and art material segments, intends to raise Rs 1,200 crore via maiden public issue which consists of a fresh issuance of shares worth Rs 350 crore, and an offer-for-sale of Rs 850 crore worth shares by the promoters.

Institutional investors including Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Trustee, Axis Mutual Fund, and ICICI Prudential Life Insurance Company already bought Rs 538 crore worth shares in the company via anchor book on December 12, a day before the issue opening.

The stationery and art material brand DOMS operator shares traded at more than 60 percent premium in the grey market, given its strong market share in the core business, healthy financial performance and strong brand presence though the valuations are high compared to listed peers, analysts said on conditions of anonymity.