The initial public offering (IPO) of pencil manufacturer DOMS Industries witnessed rapid investor interest, getting fully subscribed within hours of opening and concluding with an impressive 5.71 times subscription. The IPO, valued at Rs 1,200 crore, garnered bids for 5,04,55,458 shares against the 88,37,407 shares on offer, as reported by the NSE.
Robust Retail and Non-Institutional Investor Response: The retail individual investors (RIIs) category exhibited significant enthusiasm, subscribing at an impressive rate of 19.13 times. Non-institutional investors also demonstrated strong interest, contributing to a subscription rate of 7.95 times. In contrast, the qualified institutional buyers (QIBs) category recorded a subscription of 6 percent.
Utilization of Funds: The funds raised through the fresh issue are earmarked for establishing a new manufacturing facility, aimed at expanding DOMS Industries’ production capabilities. This expansion encompasses a diverse range of writing instruments, watercolour pens, markers, and highlighters. Additionally, the funds will be allocated for general corporate purposes.
Key Players in the IPO: The IPO’s management is overseen by prominent financial entities, including JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities. Their involvement underscores the significance of the IPO in the market and reflects the confidence placed in DOMS Industries’ growth prospects.
This robust response to the IPO indicates strong investor confidence in DOMS Industries and its strategic plans for enhancing production capacity and product offerings.*
