DOMS Industries Limited

DOMS Industries Limited - IPO DETAILS 

Company Overview 

Currently, Doms stands out as a prominent player in the branded stationary sector, boasting an impressive ~12% domestic market share according to the Technopark Report. The company's core products, particularly Pencil and Mathematical Instruments boxes, command substantial market shares of 29% and 30%, respectively. Doms has successfully expanded its reach globally, maintaining a presence in over 45 countries.  

A significant contributor to Doms' market dominance is its extensive network, comprising 4000 distributors and spanning more than 1.2 lakh retail touchpoints. The flagship brand, Doms, serves as a hub for other brands and sub-brands like C3, Amariz, and Fixyfix. C3 targets rural markets with cost-effective polymer-based pencils as an alternative to traditional wooden ones. Fixyfix, on the other hand, specializes in a unique range of glue sticks, glitter glues, and fragrance glues. Amariz focuses exclusively on artistic professionals, producing professional art brushes and kneadable erasers under this brand. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. An amount of Rs. 850 Crores or 70% of the Net Proceeds is allocated for facilitating a profitable exit for the company's promoters.  

2. The remaining Rs. 350 Crores or 30% of the funds, raised through the Initial Public Offering (IPO), will be utilized as a fresh issue. This portion of the funds is earmarked for financing the establishment of a new manufacturing facility. 

Company Financials 

Key Performance Indicator 

Pros 

1. Doms has established a strategic partnership with FILA, enabling the brand to access markets in the Asia Pacific and the Middle East. Simultaneously, Doms can distribute FILA's products in the Indian Subcontinent. 

2. The company holds a leadership position in key products within the stationery and art segments. Its extensive product range positions Doms as a market leader, particularly in the pencils and instruments boxes category in the Indian market. 

3. Doms boasts a strong brand value by consistently developing high-quality and diverse products. This commitment allows customers to stay ahead of industry trends. 

4. With a robust infrastructure featuring backward integration, the company operates 13 facilities across Gujarat. These facilities facilitate end-to-end operations, covering the entire process from design conceptualization to distribution. 

Cons 

1. The company heavily relies on polypropylene as a key component for pencil manufacturing. Fluctuations in the prices of this material can significantly impact profit margins. 

2. While Doms maintains a diverse product line, the dependency on its top two products, which contribute to approximately 60% of FY23 sales, exposes the company to vulnerability. Any adverse trends or decline in demand for these key products can have a detrimental impact on the overall sales performance. 

3. Despite holding a substantial market share, Doms remains susceptible to the competitive landscape. The risk of losing market share to competitors offering cheaper alternatives is a challenge that the company needs to navigate effectively. Staying ahead in a competitive market is crucial for sustaining and expanding its position. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”