DOMS Industries Makes Successful Stock Market Debut With 77% Premium
DOMS Industries is a company well-known for its stationery and art products, including its popular brand “DOMS”. The company has just made its debut in the stock market through an Initial Public Offering (IPO), and there’s quite a buzz about it.
DOMS Industries shares are listed at ₹1,400, a 77% premium to the issue price of ₹790 per share. The stock reached highs of ₹1,415 and lows of ₹1,370.05, with around 6 million equity shares traded.
The ₹1,200-crore DOMS Industries IPO was open for subscription from December 13 to December 15 and received an overwhelming response from investors, being subscribed 93.52 times by the end of the third day. This means a lot of people wanted to buy the shares, far more than what was available.
The company set aside different portions of its IPO for different types of investors. Most of it, 75%, was for Qualified Institutional Buyers, which are basically big investors like banks or mutual funds. Non-Institutional Investors got up to 15%, and regular retail investors, like you and me, could apply for up to 10% of the shares.
On December 19, the allotment of shares was finalized, and today, December 20, the shares were listed on the stock market at 10:00 AM. The listing was quite successful. The share price opened much higher than expected, showing that the market values the company quite a lot.
Some experts in the stock market have commented positively about DOMS Industries, praising its strong brand and wide reach. However, they also pointed out some risks, like the company’s heavy reliance on a few products like wooden pencils and its distribution network.
Now, the company’s financial performance has been quite solid over the past few years, with consistent growth in sales and profits. This strong performance is one of the reasons why the IPO was so well-received.
Moreover, the company is looking to invest more in areas like research and development and marketing to keep growing and maintaining its brand reputation.
DOMS Industries’ debut with around 77% premium is a strong entry into the stock market indeed, and many see it as a promising investment for the long term. However, like with any investment, there are risks involved, and it’s always wise to be well-informed before making any decisions.