Pencil maker DOMS Industries on Tuesday filed preliminary papers with capital markets regulator Sebi to raise Rs 1,200 crore through an initial public offering (IPO).
The company’s maiden public comprises a fresh issue aggregating up to Rs 350 crore and an offer for sale aggregating up to Rs 850 crore by promoters, according to the draft red herring prospectus (DRHP). Under the OFS, corporate promoter F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A. will offload shares worth Rs 800 crore and individual promoters — Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will sell shares to the tune of Rs 25 crore each.
The funds raised through the fresh issue would be utilized for the setting up of a new manufacturing facility to expand the company’s production capabilities for a wide range of writing instruments, watercolour pens, markers and highlighters as well as for general corporate purposes. The company designs, develops, manufactures, and sells a wide range of stationary and art products, primarily under the flagship brand ‘DOMS’ and sub-brands C3, Amariz, and Fixy Fix in the domestic market as well as in over 40 countries internationally, covering the US, Africa, Asia Pacific, Europe, and Middle East belt.
The products are classified into seven categories including scholastic stationery, scholastic art material, paper stationery, kits and combos, office supplies, hobby and craft and fine art products. As of FY23, the company’s core products such as pencils and mathematical instrument boxes enjoy a market share by value of 29 per cent and 30 per cent respectively. JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities are the book-running lead managers to the issue.
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