DOMS Industries, a leading holistic creative products player in the stationery and art products market, has received the Securities and Exchange Board of India (SEBI) approval for its proposed initial public offering.
The company’s initial public offering aggregating up to ₹1,200 crore comprises fresh issue aggregating to ₹350 crore and an offer for sale of ₹850 crore. The offer for sale comprises equity shares aggregating up to ₹800 crore by corporate promoter, F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A., equity shares of ₹25 crore by Sanjay Mansukhlal Rajani and equity shares worth ₹25 crore by Ketan Mansukhlal Rajani.
The funds raised through the fresh issue will be used for the part funding the cost of establishing a new manufacturing facility for a wide range of writing instruments, water colour pens, markers and highlighters besides general corporate purposes.
It has 11 manufacturing facilities in Umbergaon, Gujarat and in Bari Brahma, Jammu and Kashmir. Its domestic distribution network for general trade comprises over 100 super-stockists, and 3,750 distributors along with a dedicated sales team of over 450 personnel covering more than 115,000 retail touch points across 3,500 cities and towns. They also cater to consumers through modern trade and e-commerce.
The company sells a wide range of stationary and art products under the brand ‘DOMS’ and sub brands C3, Amariz and Fixy Fix in the domestic market. It also has presence in over 40 countries including the US, Africa, Asia Pacific, Europe and Middle East. The product categories which include over 3,770 SKUs, are classified into seven categories. As of FY23, the company’s core products such as pencils and mathematical instrument boxes enjoy a market share of 29 per cent and 30 per cent by value, respectively. The largest product ‘pencils’ contributed 32 per cent of the gross product sales of ₹390 crore in fiscal 2023.