DOMS shares list at 77% premium over IPO price; India Shelter debuts 25.7% higher
After garnering strong responses for their initial public offerings (IPOs), affordable housing financer India Shelter Finance and stationery manufacturer DOMS Industries made a stellar debut on stock exchanges today, in sync with a positive broader market. Beating street expectations, shares of DOMS Industries made a blockbuster debut at ₹1,400, up 77% over the issue price of ₹790 on the BSE and the NSE. While shares of India Shelter Finance were listed at 620, a premium of 25.7% over the IPO price of ₹493, which was largely in line with street expectations.
Post listing, DOMS Industries share price touched a high and low of ₹1,415 and ₹1,370.05, respectively, on the NSE, while the market capitalisation stood at ₹8,361 crore.
In a similar trend, India Shelter Finance shares hit a high and low of ₹630 and ₹566.65, respectively on the NSE. The market capitalisation of the Gurugram-based housing finance company stood at ₹6,187 crore.
“DOMS Industries has debuted at 77% above its issue price. The issue came at a P/E of 43x, which was fully priced. Thus, considering such a premium on listing, allottees who applied for the public offering for listing premium are advised to book profit however investors with long-term view may hold it by keeping a stop loss at ₹1,260 level. A fresh buy will not be recommended at such a high level,” says Shivani Nyati, Head of Wealth, Swastika Investmart.
On India Shelter, Nyati says the company boasts strong fundamentals built on years of experience in the affordable housing market. “The company has a diverse portfolio and strong distribution network, catering to the growing demand for quality and affordable homes. Additionally, India Shelter has demonstrated consistent financial performance with a track record of revenue and profit growth. Investors are advised to book this listing gain; however, those who still want to hold it may keep a stop loss at ₹558 level.”
Both the companies - India Shelter and DOMS – received strong response for their public issues which opened for subscription between December 12-15.
The ₹1,200 crore IPO of India Shelter Finance was subscribed 36.7 times at a price band of ₹469-493 per share. As per the NSE data, the issue received bids for 65.75 crore shares against 1.79 crore shares on offer. The portion for retail investors was booked 9.95 times, while quotas for non-institutional investors (NII) and qualified institutional buyers (QIB) were subscribed 28.51 times and 89.7 times, respectively. The company had reserved half of the issue for QIB, 15% for NII, and the remaining 35% for retail investors.
On the other hand, the issue of DOMS was booked 99.34 times on the final day of subscription, with the quota for retail investors receiving 73.38 times bids. The category for QIB was subscribed 122.16 times and that of the NII segment by 70.06 times. As per the offer document filed with SEBI, the company has reserved 75% of the issue for QIBs, 15% for NIIs, and the remaining 10% for retail investors, which includes a reservation of ₹5 crore worth of shares for employees of the company, who will get these shares at a discount of ₹75 each to the final issue price.
Incorporated in 2006, DOMS aims to use funds raised through the fresh issue to fund 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, as well as for general corporate purposes. The Gujarat-based company is a leading player in the Indian stationery and art products market.
Meanwhile, India Shelter Finance intends to use the funds raised from the issuance of fresh equities to meet future capital requirements toward onward lending. The fund will be partially utilised for general corporate purposes. Established in 1998, the company provides home loans and loans against property to customers in the low and middle-income segments.
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