Key Highlights of DOMS Industries Limited IPO:

1. Incorporation and Market Presence:

   • Incorporated on October 24, 2006, DOMS Industries is involved in designing, developing, manufacturing, and selling a wide range of stationery and art products.
   • The company operates both in the domestic market and internationally, spanning over 45 countries as of September 30, 2023.

2. Market Position:

   • DOMS is the 2nd largest player in India's branded 'stationery and art' products market, boasting a market share of approximately 12% by value as of Fiscal 2023.

3. Core Products and Market Shares:

   • Core products such as 'pencils' and 'mathematical instrument boxes' hold significant market shares of 29% and 30%, respectively, by value in Fiscal 2023.

4. Product Categories:

   • DOMS classifies its products across seven categories, including scholastic stationery, scholastic art material, paper stationery, kits and combos, office supplies, hobby and craft, and fine art products.

5. International Reach and Partnership:

   • The partnership with FILA has facilitated international market access, distribution, and augmentation of R&D and technological capabilities.

6. Brand Portfolio:

   • Products are marketed under the flagship brand 'DOMS' and other brand/sub-brands, including 'C3', 'Amariz', and 'Fixyfix'. 'Wooden pencils' are the largest product in terms of revenue.

7. Manufacturing Facilities:

   • DOMS operates 13 manufacturing facilities in Umbergaon, Gujarat, covering approximately 34 acres, and one facility in Bari Brahma, Jammu and Kashmir, covering approximately 2 acres.
   • The annual installed capacity as of March 31, 2023, for key products was 473.49 crore units.

8. Domestic Distribution Network:

   • The company's domestic distribution network for general trade comprises over 120 super-stockists, 4,000 distributors, and a dedicated sales team of over 500 personnel.
   • The network covers more than 120,000 retail touchpoints across 3,500 cities and towns.

Investors considering DOMS Industries Limited IPO may find these highlights informative for their assessment of the company's market presence, product portfolio, and distribution strategies.

Industry and Market Potential Analysis for Doms Industries IPO:

1. Global Stationery and Art Materials Market Classification:

   • The global stationery and art materials market is segmented into several categories, including educational stationery, office stationery, pen & writing instruments, stationery adhesives, academic art, fine arts, hobbies & crafts, and printing and writing paper stationery.

2. Market Share Dynamics (CY 2022):

   • The Printing and Writing Paper sector currently dominates the global stationery and art materials market, holding approximately 33% market share.
   • The Scholastic Stationery sector closely follows with around 32% market share.
   • Other segments contribute to the remaining market share.

3. Projected Market Share Changes (CY 2027):

   • It is projected that by CY 2027, both the Printing and Writing Paper sector and the Scholastic Stationery sector will each hold an equal share of about 31%.
   • The pen and writing instrument segment is expected to experience substantial growth, increasing its market share from 9% in CY 2022 to 12% by CY 2027.

4. Implications for Doms Industries:

   • Doms Industries, being involved in the production of writing instruments, particularly pencils, could benefit from the projected growth in the pen and writing instrument segment.
   • The company's product portfolio and market strategies should align with the evolving dynamics of the global stationery and art materials market.

Investors considering Doms Industries IPO may find it valuable to assess how the company positions itself within these market trends and how well its strategies align with the expected changes in market dynamics.

Company Overview:

• Incorporation: The company was originally incorporated as 'Writefine Products Private Limited' on October 24, 2006. The promoters include Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya, and FILA.

• Promoters and Ownership: The promoters collectively hold 89.26% of the pre-offer issued, subscribed, and paid-up share capital of the company. The key promoters are Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya, and FILA.

• Historical Background: The company's roots trace back to 1973 with the formation of the partnership firm 'R.R. Industries' by the founders, late Rasiklal Amritlal Raveshia and late Mansukhlal Jamnadas Rajani. In 2005, another partnership firm, 'S. Tech Industries,' was established for the manufacturing and sale of polymer-based 'scholastic stationery.' The company later acquired the business of these partnership firms in 2006.

• Strategic Partnership: In 2012, the company entered into a strategic partnership with FILA, an Italian multinational company engaged in the supply of various 'art materials' and 'stationery products.'

Brief Biographies of Directors:

1. Gianmatteo Terruzzi (Chairman and Independent Director): Registered as a fiduciary in the Register of Fiduciaries, Republic and Canton of Ticino. Previously associated with LVT Advisors S.R.L., Egida SRL, I.R.E. 2 S.R.L., and Lusben Varazze S.R.L.

2. Santosh Rasiklal Raveshia (Managing Director and Individual Promoter): Associated with the company since its incorporation. Partner at R.R. Industries since 2002 and partner at S-Tech Industries since 2006.

3. Sanjay Mansukhlal Rajani (Whole Time Director and Individual Promoter): Joined R. R. Industries in 1985, became a partner in 2011.

4. Ketan Mansukhlal Rajani (Whole Time Director and Individual Promoter): Joined R. R. Industries in 2003, became a partner in 2011.

5. Chandni Vijay Somaiya (Whole Time Director and Individual Promoter): Joined S-Tech Industries as a partner in 2004.

6. Massimo Candela (Non-Executive Director): Associated with FILA since 1992 as CEO.

7. Luca Pelosin (Non-Executive Director): Previously associated with Nuova Alpa Collanti S.r.l. as a special attorney.

8. Annalisa Matilde Elena Barbera (Non-Executive Director): Previously associated with Trifirò and Partners as an associate, currently associated with Studio Legale Salonia e Associati as a partner.

9. Cristian Nicoletti (Non-Executive Director): Previously associated with Akzo Nobel Coatings S.p.A. as a manager of its Fombio (Lo) plant. Currently associated with FILA as its CFO.

10. Rajiv Ishwarbhai Mistry (Independent Director): Founder and chairman of Ascent Medtech.

11. Mehul Shah (Independent Director): Enrolled as an advocate with the Bar Council of Maharashtra and Goa since 1999. Partner at Khaitan & Co.

12. Darshika Thacker (Independent Director): Currently associated with Thacker & Associates as a partner.

• Management Team:
  • Mitesh Padia (Company Secretary and Compliance Officer): Joined the company on January 1, 2018.
  • Rahul Shah (Chief Financial Officer): Joined the company on December 1, 2016.

This provides an overview of the company's history, key promoters, and the background of its directors and management team.

Risks and Challenges associated with Doms Industries Limited IPO:

1. Product Concentration Risk:

   • Nature of Risk: Doms Industries faces a significant risk due to the concentration of its product sales. Wooden pencils contribute over 30% of the gross product sales in fiscal 2023.
   • Potential Impact: Any decline in the sales of these critical products, especially wooden pencils, could have a detrimental effect on the company's business, financial condition, and operational results.

2. Brand and Counterfeiting Risk:

   • Nature of Risk: The company is exposed to risks associated with brand image, reputation, and consumer awareness.
   • Potential Impact: Any deterioration in the brand image or reputation, or issues related to counterfeiting, could adversely affect the company's business operations and overall financial condition.

3. Dependence on FILA for Export Sales:

   • Nature of Risk: Doms Industries has a significant dependence on the FILA Group for export sales, with these sales contributing to more than 60% of the total export sales.
   • Potential Impact: Any damage to the reputation of the FILA Group could have adverse consequences on the business, operational results, and financial condition of Doms Industries.

Investors considering the Doms Industries Limited IPO should carefully evaluate these risks as part of their due diligence. Understanding these challenges is crucial for making informed investment decisions.

Objective of DOMS Industries Limited IPO:

1. New Manufacturing Facility:

   • Amount Allocated: INR 280 crores
   • Purpose: Doms Industries Limited aims to invest INR 280 crores in establishing a new manufacturing facility in Umbergaon. This investment aligns with the company's growth strategy, indicating a focus on expanding production capacity or optimizing manufacturing processes.

2. General Corporate Purpose:

   • Utilization: The remaining funds after allocating for the new manufacturing facility.
   • Purpose:
     • Strategic Initiatives: Including but not limited to the advancement of information technology.
     • Branch and Business Expansion: Meeting expenses related to the expansion of branches and business.
     • Other Corporate Purposes: This category typically covers various expenses incurred in the ordinary course of business that contribute to the company's overall strategic objectives.

These objectives reflect the company's intention to fuel its expansion, enhance technological capabilities, and implement strategic initiatives for sustained growth. Investors should carefully consider these objectives and the company's overall business strategy before making investment decisions.

Objective of DOMS Industries Limited IPO:

1. New Manufacturing Facility:

   • Amount Allocated: INR 280 crores
   • Purpose: Doms Industries Limited aims to invest INR 280 crores in establishing a new manufacturing facility in Umbergaon. This investment aligns with the company's growth strategy, indicating a focus on expanding production capacity or optimizing manufacturing processes.

2. General Corporate Purpose:

   • Utilization: The remaining funds after allocating for the new manufacturing facility.
   • Purpose:
     • Strategic Initiatives: Including but not limited to the advancement of information technology.
     • Branch and Business Expansion: Meeting expenses related to the expansion of branches and business.
     • Other Corporate Purposes: This category typically covers various expenses incurred in the ordinary course of business that contribute to the company's overall strategic objectives.

These objectives reflect the company's intention to fuel its expansion, enhance technological capabilities, and implement strategic initiatives for sustained growth. Investors should carefully consider these objectives and the company's overall business strategy before making investment decisions.

DOMS Industries Limited IPO Valuation:

1. Upper Price Band:

   • The upper price band for the DOMS Industries Limited IPO is Rs 790. This is the highest price at which the shares are offered to the public during the IPO.

2. Existing Shares (Quantity):

   • The number of existing shares is 5.62 Crore.

3. Fresh Issue:

   • The fresh issue involves the issuance of new shares to the public, and in this case, it is Rs 350 Crore.

4. Market Cap:

   • The market capitalization is calculated by multiplying the upper price band by the total number of shares. In this case, it is Rs 4,789.8 Crore.

5. Earnings Per Share (EPS - FY23):

   • The Earnings Per Share for the financial year 2022-23 is Rs 18.29. This is the portion of a company's profit allocated to each outstanding share of common stock.

6. Price-to-Earnings (P/E) Ratio:

   • The P/E ratio is calculated by dividing the market price per share by the earnings per share. In this case, it is approximately 43.19x. This ratio indicates the valuation of the company relative to its earnings.

7. Industry P/E:

   • The Industry P/E ratio is a benchmark that provides a comparison to industry peers. In this case, the Industry P/E is 35.99x.

Analysis:

• The P/E ratio of 43.19x suggests that investors are willing to pay 43.19 times the earnings per share for the company's stock. This can indicate a relatively high valuation.

• Comparing the company's P/E ratio to the industry average (35.99x) can provide insights into whether the stock is valued higher or lower than its peers.

• Investors should consider various factors, including the company's financial health, growth prospects, and overall market conditions, before making investment decisions.

• It's advisable for investors to carefully read the prospectus and consult with financial experts for a comprehensive understanding of the IPO and its valuation.