The primary market seems to have picked up pace with three mainboard issues hitting Dalal Street this week. As much as ₹4,000 crore worth of funds will be raised by three companies — DOMS Industries, India Shelter Finance, and Inox India.
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DOMS Industries: The initial public offer (IPO) of the stationery and art product company will open for bidding on December 13 and will conclude on December 15. The anchor book will be opened for a day on December 12.
The company will sell its shares in the range of ₹750-790, and investors can bid for a minimum of 18 equity shares in one lot and in multiples thereafter.
The ₹1,200 crore IPO comprises fresh equity issue of ₹350 crore and an offer for sale (OFS) of ₹850 crore. Under the OFS, promoters Fabbrica Italiana Lapis, Sanjay Mansukhal Rajani and Keta Mansukhal Rajani will offload shares. The capital raised from the OFS will go to the selling shareholders.
The offer is being made through the book-building process, where 75% of the net offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the rest 10% for retail investors.
The offer also includes a reservation of up to ₹5 crore worth shares for employees of the company. The IPO excluding employees portion is the net issue.
The company will used the capital raised from the fresh issue towards funding of the cost of establishing a new manufacturing facility to expand the company’s production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters, along with for general corporate purposes.
DOMS Industries held 29% and 30% market share, respectively, in pencils and mathematical instrument boxes, for the financial year 2022-23. It is primarily engaged in designing, developing, manufacturing, and selling a wide range of these products under the flagship brand, DOMS.
India Shelter Finance Corporation: Backed by WestBridge Capital and Nexus Venture Partners, the company will open for subscription on December 13, and close on December 15.
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The IPO, which includes a fresh issue of equity shares worth ₹800 crore, and an OFS of ₹400 crore, has a price band of ₹469-493.
Investors can bid for a minimum of 30 equity shares in one lot and in multiples thereafter.
Half of the issue size is set aside for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.
India Shelter Finance is a retail-focused affordable housing finance company with an extensive distribution network and technology infrastructure. Between FY21 and FY23, it witnessed a two-year CAGR growth of 40.8% in terms of assets under management. It recorded 32% on-year growth in its total income at ₹606 crore for fiscal ended March 2023. Profit for the same period grew 21% to ₹155 crore.
Inox India: Cryogenic storage tanks maker Inox India will open for public subscription on December 14. The issue will conclude on December 18. Bidding for the anchor book will take place for a day on December 13.
The company has fixed the price band at ₹627-660 per share for its ₹1,459.32 crore public issue. Investors can make an application for the issue for a minimum of 22 shares and in multiples thereafter.
Inox India issue is completely an OFS of 2.21 crore shares with a face value of ₹2 each. Under the OFS, Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, Ishita Jain, Manju Jain, Lata Rungta, among others, will offload shares.
About 50% of the issue is kept aside for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
Since there is no fresh issue segment in the IPO, the company will not receive any proceeds and all the funds will go to the selling shareholders..
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Inox India has over 30 years of experience offering solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions. On the financial front, the company’s net profit in the six-month period ended September FY24 rose 24% to ₹103 crore and revenue increased 16% over the last year to ₹564.6 crore.
