With an m-cap of Rs 8,500 crore, DOMS Industries shares list at a premium of 77% over the issue price.

The stock of DOMS Industries Ltd. made a successful market debut on Wednesday when it was listed at Rs 1,400 on the BSE and NSE, which is 77.22% more than its issue price of Rs 790. DOMS Industries was commanding a market capitalization of Rs 8,496.21 crore at this share price. The listing gain exceeded the premium that the stock was being assigned by the grey market prior to its launch.

At 10.06 am, DOMS Industries had buy orders for 2,91,098 shares against sell orders for 36,052 shares on the BSE. The Bombay Stock Exchange’s International Convention Hall (First Floor) hosted the listing ceremony. The stock is now part of the exchange’s “B” Group Securities list and can be traded there.

“DOMS’s listing was exactly what we had anticipated. We think that after listing, valuations would be overvalued when discounting the following year’s earnings growth. Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd., stated, “Therefore, we advise allotted investors to book profits while those who were not allotted in the public offer can wait and watch for reasonable dips post listing to accumulate for decent long term returns.”

Investors responded favorably to the IPO bidding process of the second-largest domestic player in the branded “stationery and art” products market, with the issue being subscribed a solid 99.34 times. By the end of FY23, DOMS Industries held a nearly twelve percent market share in terms of value. Mathematical instrument boxes and pencils were the company’s main offerings. In FY23, DOMS held a share of 30% in mathematical instrument boxes, compared to its 29% market share in pencils.

Thirteen manufacturing facilities, totaling about thirty-four acres of land, are operated by DOMS Industries in Gujarat. One of India’s biggest facilities for the production of stationery, it occupies 1.18 million square feet. As of March 31, DOMS Industries had an annual installed capacity of 473.49 crore units for the key products. Additionally, DOMS Industries runs a manufacturing plant in Jammu and Kashmir that occupies 0.07 million square feet over two acres of land. There were 4,000 distributors and 120 super-stockists in the company’s domestic general trade distribution network. More than 120,000 retail touch points are covered by 500 employees across more than 3,500 cities and towns.