DOMS Industries Ltd IPO

The IPO opens on 13 Dec 2023 & closes on 15 Dec 2023.

Doms Industries Private Limited was originally incorporated as 'Writefine Products Private Limited' as a Private Limited Company, dated October 24, 2006, issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Thereafter, the name of the Company was changed to 'DOMS Industries Private Limited' at Ahmedabad on April 21, 2017. Upon the conversion of the Company into a Public Limited Company,, the name was changed to 'DOMS Industries Limited' and a fresh Certificate of Incorporation was issued to Company by the RoC on August 3, 2023. The Company is primarily engaged in manufacturing, marketing, trading and distribution of stationery products. The Company sells its products in India and in international markets. It works manufacturing facilities in Umbergaon, Gujarat and Bari Brahma, Jammu & Kashmir. The Company traces lineage back to 1973, with the formation of a Partnership Firm, R.R. Industries' by the founders, late Rasiklal Amritlal Raveshia and late Mansukhlal Jamnadas Rajani, which undertook the business of manufacturing and sale of pencils and crayons. Subsequently, in 2005, another Partnership Firm S. Tech Industries' was founded by certain members of the Promoter Group, to undertake the business of manufacturing and sale of polymer based scholastic stationery'. In order to streamline operations and achieve integration of businesses, the Company (then known as Writefine Products Private Limited') acquired the business of these partnership firms. Further, in 2012, the Company got into a strategic partnership with FILA, a listed Italian multinational company, engaged in the supply of various art materials' and stationery products', with a global presence. The partnership with FILA enabled to gain access to international markets for distribution of products, augmentation of R&D and technological capabilities, which resulted in expansion of international footprint in key American and European markets and has helped in the global distribution of DOMS' brand. Further, the Company has an exclusive tie-up with certain entities of the FILA Group, for distribution and marketing for all categories of their respective products, under their name and trademark, in India, Nepal, Bhutan, Sri Lanka, Bangladesh, Myanmar, and Maldives. Doms Industries are a holistic creative products company with a leading player and brand in India's stationery and art' products market. The Company design, develop, manufacture, and sell a wide range of these products, under 'DOMS' brand, along with other brand/sub-brands including C3', Amariz', and Fixyfix' in the domestic market as well as in over 40 countries internationally, as of March 31, 2023. The Company classify well-designed and quality stationery and art material' products to consumers, across seven categories: (i) scholastic stationery; (ii) scholastic art material; (iii) paper stationery; (iv) kits and combos; (v) office supplies; (vi) hobby and craft; and (vii) fine art products. The Company undertake manufacturing operations from facilities located in Umbergaon, Gujarat and Bari Brahma, in Jammu and Kashmir. They are vertically integrated with operations such as procurement of raw materials, moulding, assembling, integration of sub-assemblies into finished products being done at the manufacturing facilities in Umbergaon. The domestic distribution network for general trade comprises of 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 over 3,500 cities and towns. Apart from this, it has a wide and differentiated product category, which includes over 3,770 SKUs as of March 31, 2023. The Company made a public issue of 15,196,510 equity shares of Rs 10 each by raising funds aggregating to Rs 1200 Crore, comprising a fresh issue of 4,437,018 equity shares aggregating to Rs 350 Cr and 10,759,492 equity shares aggregating to Rs 850 Cr through offer for sale in December, 2023. In August 2023, Company acquired 75% equity share capital of Micro Wood Private Limited, making it a subsidiary of the Company. Similarly, it acquired 51% equity stake of SKIDO Industries Pvt Ltd, making it a subsidiary of the Company with effect from April 01, 2024. In FY 2025, Company diversified the operations into the baby hygiene segment by acquiring a 51.77% stake in Uniclan Healthcare Pvt. Ltd and further acquired a 51% of equity stake in in Super Treads Pvt. Ltd.,, making them as subsidiaries of the Company in June, 2025. .

DOMS Industries Ltd IPO will close on 15 Dec 2023.

<ul><li>Leadership position in the Indian `stationery and art material' industry with the widest range of products, driving rapid business growth.</li><li>Strong brand recall driven by high quality, innovative and differentiated products.</li><li>World class manufacturing infrastructure, with a focus on backward integration to drive efficiencies.</li><li>Robust multi-channel distribution network with strong pan India and international presence.</li><li>Strategic partnership with FILA enabling access to global markets and product know-how.</li><li>Experienced Promoters and management team.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Santosh Rasiklal Raveshia</td> <td>9562679</td> <td>17</td> <td>9562679</td> <td>15.76</td> </tr> <tr> <td>2</td> <td>Sanjay Mansukhlal Rajani</td> <td>4854952</td> <td>8.63</td> <td>4538497</td> <td>7.48</td> </tr> <tr> <td>3</td> <td>Ketan Mansukhlal Rajani</td> <td>4854952</td> <td>8.63</td> <td>4538497</td> <td>7.48</td> </tr> <tr> <td>4</td> <td>Chandni Vijay Somaiya</td> <td>2249900</td> <td>4</td> <td>2249900</td> <td>3.71</td> </tr> <tr> <td>5</td> <td>FILA-Fabrica Italiana Lapis ed</td> <td>28687735</td> <td>51</td> <td>18561153</td> <td>30.58</td> </tr> </tbody> </table>

<ul><li>Product concentration risk - its derived a significant portion (approximately 60%) of the company Gross Product Sales in each of the last three Fiscals from the sale of its key products and a significant portion (more than 30%) of its Gross Product Sales in Fiscal 2023 is attributable to the sale of ooden pencils'. Any decline in the Gross Product Sales of its key products in general or specifically `Wooden pencils' could have an adverse effect on its business, results of operations and financial condition.</li><li>Distribution risk - the company is dependent on its "General Trade" distribution network for a significant portion (more than 70.00%) of its Gross Product Sales in each of the last three Fiscals. Failure to manage its "General Trade" distribution network efficiently could have an adverse impact on its business, results of operations and financial condition.</li><li>Brand and counterfeiting risk - Any deterioration of its brand image, reputation and its consumer's awareness of the company's brand and products could have a material adverse effect on its business, results of operations and financial condition. Further, the availability of look-alikes, counterfeit products, primarily in its domestic market, manufactured by other companies and passed off as its products, could also adversely affect its goodwill and results of operations.</li><li>Dependence on natural resources for raw materials - Some of the raw materials used in its production processes are natural resources and therefore the company is subject to the risk of depletion of such natural resources.</li><li>Supply risk - The company has not entered into any formal contracts or exclusive arrangement with its suppliers from whom its procure materials consumed by it for the company's manufacturing process. Further, its dependent on certain limited suppliers for some of its raw materials. In the event, the company is unable to procure such materials at terms favourable to it, or at all, its business, financial condition and results of operations may be adversely affected.</li><li>Pricing pressure from suppliers - Increase in costs of raw materials or its inability to fully pass on costs to its customers, may impact the company revenue from operations and profitability and may result in a materially adverse effect on its business, results of operations and financial condition.</li><li>Inability to assess consumer preference and demand - its success depends on its ability to promptly identify and respond to changing consumer preferences or evolving trends and successfully launch new products or SKUs in the market. Failure to do so may decrease the demand for its products among its consumers, which may adversely affect its business, results of operations and financial condition.</li><li>Inventory risk - Failure to correctly assess the demand for its products and maintain optimal inventory levels could increase its inventory holding costs and adversely affect the company's business, results of operations and financial condition.</li><li>Dependence on FILA for export sale - The company is dependent on the FILA Group for its export sales (export sales to FILA Group contributing to more than 60% of its total export sales in each of the last three Fiscals). Any damage to the reputation of the FILA Group may adversely affect its business, results of operations and financial condition.</li><li>Loss - The Company has incurred loss in the past.</li><li>Negative cash flows - The company has had negative cash flows in previous financial years and may continue to have negative cash flows in the future, which could adversely affect its liquidity and operations.</li><li>Unsecured borrowings repayable on demand - The company has availed unsecured borrowings from certain lenders including its Promoters, members of the Promoter Group and directors of its Subsidiary which can be recalled by the lenders.</li><li>Risk relating to acquisitions - As part of its business strategy, the company has undertaken certain acquisitions in the past and may continue to do so in the future. Any inability to manage its expansions effectively and execute its growth strategy in a timely manner could have a material adverse effect on its business, results of operations and financial condition.</li><li>Insurance coverage - Its insurance coverage may not be adequate to protect it against all material risks.</li><li>Contingent liabilities - Its contingent liabilities as stated in the company Restated Consolidated Financial Information could adversely affect its financial condition.</li><li>Related party transactions - The company has entered, and will continue to enter, into related party transactions which may involve conflicts of interest.</li><li>Manufacturing facility - Any disruption, breakdown or shutdown of its Manufacturing Facilities may have a material adverse effect on its business, results of operations and financial condition.</li><li>Intellectual property rights - Any failure to protect its intellectual property rights could adversely affect its competitive position, business, results of operations and financial condition.</li><li>Property - its Registered Office, its Corporate Office and certain land parcels on which the company Manufacturing Facilities are established are on long term leased premises. Also, some of its other facilities are located on premises leased from third parties. A failure to renew its existing lease arrangements at commercially favourable terms or at all may have a material adverse effect on its business, financial condition and results of operations.</li><li>Dependence on third party transportation providers - the company relies on third-party transportation providers for both procurement of its raw materials and distribution of the company products. Any failure by any of its transportation providers to deliver its raw materials or its products on time, or in good condition, or at all, may adversely affect its business, financial condition and results of operations.</li><li>Risks associated with the Proposed Project - the company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. This includes part financing the cost of establishing the Proposed Project which may be subject to the risk of unanticipated delays in implementation, cost overruns and other risks and uncertainties. Further, the objects of the Offer includes orders for plant and machinery which have not yet been placed.</li><li>Legal proceedings - There are certain outstanding legal proceedings involving the Company, Subsidiaries, Directors and Promoters. Any adverse decisions in these proceedings could impact its reputation, business and financial condition.</li><li>Regulatory approvals and licenses - the company is subject to various laws and extensive government regulations and if its fail to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required in the ordinary course of its business, including environmental, health and safety laws and other regulations, its business financial condition, results of operations and cash flows may be adversely affected.</li><li>Dependence on Promoter and others - The company depend on its Promoters, Key Managerial Personnel, and Senior Management Personnel for conducting its business and undertaking its day to day operations. The loss of or the company's inability to retain, such persons could materially adversely affect its business performance.</li><li>Guarantees provided by its Promoters - its Promoters have provided personal guarantees for certain borrowings obtained by it and the company Subsidiaries, and any failure or default by it or its Subsidiaries to repay such loans could trigger repayment obligations on its Promoters, which may impact its Promoters' ability to effectively service their obligations as its Promoters and thereby, adversely impact its business and operations.</li><li>Other interests of Promoters, Directors and KMPs or SMPs - its Promoters and certain of its Directors, Key Managerial Personnel and Senior Management Personnel have interests in the Company other than their normal remuneration or benefits and reimbursement of expenses.</li><li>Control of Promoters - the company will be controlled by its Promoters along with members of its Promoter Group so long as they hold a majority of the Equity Shares, which will allow them to influence the outcome of certain matters submitted for approval of its Shareholders and their interests may not be aligned with the interest of other Shareholders.</li><li>Competition - the company face significant competitive pressures in its business. The company's inability to compete effectively would have a material adverse effect on its business, prospects, operations or financial results.</li><li>Labour - its operations are human capital intensive and may be materially adversely affected by strikes, work stoppages or increased wage demands by its employees or those of the company suppliers.</li><li>Indebtedness - its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect its business, results of operations and financial condition.</li><li>Expansion Strategies - If the company cannot execute its strategies to expand existing customer accounts and geographical footprint effectively, its business and prospects may be materially and adversely affected.</li><li>Capacity utilisation - Information relating to historical installed capacity and estimated capacity utilization of its Manufacturing Facilities included in this Draft Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity utilization may vary. Under-utilization of its manufacturing capacity and an inability to effectively utilize its Manufacturing Facilities may have an adverse effect on its business and future financial performance.</li><li>Technological advancement - Its inability to compete with technological advancements in the stationery sector may render the company's products obsolete thereby impacting its business, operations, growth prospects or financial results.</li><li>Counterparty credit risk - The company is exposed to counterparty credit risk, and its may be subject to delays in or non-receipt of payments.</li><li>Object not appraised by banks or financial institutions - The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of its Net Proceeds as disclosed in this Draft Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>Incidents of theft or fraud - its may be subject to fraud, theft or such similar incidents which may have an adverse effect on its business operations and financial conditions.</li><li>COVID-19 - its business and operations were adversely impacted by the COVID-19 pandemic and the future impact on its business, operations and financial performance from a recurrence or a similar outbreak cannot be predicted.</li><li>Internal controls - If its fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, its financial risks.</li><li>Information technology - Technology failures could disrupt its operations and adversely affect the company's business operations and financial performance.</li><li>Industry Data - Industry information included in this Draft Red Herring Prospectus has been derived from a third party industry report, exclusively commissioned and paid for by it.</li><li>Common pursuits - its Corporate Promoter, the company's Subsidiaries and certain of its Group Companies have common pursuits with the Company as they are engaged in similar business or industry segments and may compete with it. Its Promoters and Directors are involved with one or more ventures which are in the same line of activity or business as that of the Company.</li><li>Offer for Sale - the company will not receive any proceeds from the Offer for Sale portion.</li><li>Non-GAAP measures - Certain non-GAAP financial measures and performance indicators used in this Draft Red Herring Prospectus to review and analyse its financial and operating performance may have limitations as analytical tools, may vary from any standard methodology applicable across the manufacturing industry in which its operate, and may not be comparable with financial or statistical information of similar nomenclature computed and presented by other companies.</li></ul>

The Issue type of DOMS Industries Ltd is Book Building.

The minimum application for shares of DOMS Industries Ltd is 18.

The total shares issue of DOMS Industries Ltd is 15189873.

Initial public offering of 15,196,510* equity shares of face value of Rs. 10 each ("Equity Shares") of Doms Industries Limited ("The Company" or the "Issuer") for cash at a price of Rs. 790^ per equity share (including a premium of Rs. 780 per equity share) ("Offer Price") aggregating to Rs. 1200.00 crores ("Offer"), comprising a fresh issue of 4,437,018* equity shares aggregating to Rs. 350.00 crores (the "Fresh Issue") and an offer for sale of 10,759,492* equity shares ("Offered Shares") aggregating to Rs. 850.00 crores comprising of 10,126,582* equity shares aggregating to Rs. 800.00 crores by F.I.L.A. - Fabbrica Italiana Lapised Affini s.p.a., 316,455* equity shares aggregating to Rs. 25.00 crores by Sanjay Mansukhlal Rajani, 316,455* equity shares aggregating to Rs. 25.00 crores by Ketan Mansukhlal Rajani (collectively, "Selling Shareholders" and such offer for sale of equity shares by the selling shareholders, "Offer for Sale"). This offer included a reservation of 69,930* equity shares aggregating to Rs. 5.00 crores (constituting 0.12% of the post-offer paid-up equity share capital of the company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers, offered a discount of 9.49% (equivalent of Rs. 75 per equity share) to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitute 25.04% and 24.93%, respectively of the post-offer paid-up equity share capital of the company. *Subject to finalisation of the basis of allotment. ^ A discount of Rs. 75 per equity share was offered to eligible employees bidding in the employee reservation portion.