This offer also includes a reservation of shares aggregating up to Rs 5 crore for subscription by eligible employees which will be issued at a discount of Rs 75 per share
New Delhi: The second largest pencil-maker Doms Industries on Thursday set a Rs 750-790 price band for its Rs 1,200 crore initial share sale that’s opening on December 13.
The Umbergaon, Valsad-based company said the issue comprises Rs 850 crore of offer for sale and Rs 350 crore of fresh issue and will close on December 15. Its chief financial officer Rahul Shah told reporters here that the floor price is 75 times and the cap price is 79 times the face value of the equity shares.
The OFS will have its single largest shareholder Fila of Italy selling shares worth Rs 800 crore from its 51 per cent holding and promoter families diluting shares worth Rs 50 croreand Rs 25 crore each by Sanjay Mansukhlal Rajani who is a director of the company and Rs 25 crore by Ketan Mansukhlal Rajani who is whole-time director.
This offer also includes a reservation of shares aggregating up to Rs 5 crore for subscription by eligible employees which will be issued at a discount of Rs 75 per share.
The company will use proceeds to part finance the Rs 453.57 crore capex for setting up a new manufacturing facility to expand production capabilities for a wide range of writing instruments, watercolour pens, markers and highlighters, in Umbergaon where it already has multiple units.
Post-issue, Fila (Fabbrica Italiana Lapis ed Affini), which owns 51 per cent and has invested close to Rs 300 crore since 2012, will continue to be the single largest shareholder and together with the Italian partner, the promoters will hold 75 per cent equity.
Santosh Raveshia owns 17 per cent of the company, Sanjay Rajani and Ketan Rajani own 8.63 per cent each; and Chandni Vijay Somaiya, Sejal Santosh Raveshia and Sheetal Hiren Parpani hold 4 per cent each.
Interestingly, the coastal town Umbergaon in the Valsad district of Gujarat is known as the pencil town of the country as it is home to the two largest players Hindustan Pencils, which controls around 40 per cent of the market, and Doms controlling 30 per cent.