DOMS Industries Limited’s (DOMS) initial public offering (IPO) grey market premium (GMP) has jumped to ₹195 per share, up from ₹170 per share on Wednesday. The IPO is set to open on December 13 and close on December 15.
The GMP is an indication of the demand for the IPO shares in the grey market, where shares are traded before they are listed on a stock exchange. A higher GMP indicates that there is more demand for the shares, which could lead to a higher listing price.
DOMS is a leading manufacturer of automotive components in India. The company’s products include brake pads, discs, rotors, and other components. DOMS is targeting to raise ₹1,200 crore through its IPO.
The company’s revenue from operations fell 41% year-on-year to ₹403 crore in the financial year 2023. However, its profit after tax (PAT) rose 500.18% to ₹174 crore in the same period.
DOMS is expected to benefit from the growth of the automotive industry in India. The Indian automotive industry is expected to grow at a CAGR of 10% to 12% in the next five years.
Grey Market Premium (GMP)
The grey market premium (GMP) for DOMS Industries shares has been rising steadily since the IPO opened. On December 7, 2023, the GMP stood at ₹195, which is a premium of ₹30 over the issue price.
The rising GMP suggests that investors are expecting a strong listing for DOMS Industries shares.
Company Profile
DOMS Industries Limited is a leading manufacturer of automotive components. The company’s products include brake pads, brake linings, clutch discs, and other components. DOMS Industries has a strong presence in the domestic market and exports its products to over 50 countries.
Financial Performance
DOMS Industries’ revenue from operations increased by 77.28% to ₹403 crore in the financial year 2023. The company’s profit after tax (PAT) rose by 500.18% to ₹202 crore in the same period.
Key Takeaways
- DOMS IPO GMP jumps to ₹195 per share
- Allotment date likely on December 18
- Company’s revenue fell 41% in FY23
- PAT rose 500% in FY23
- Company expected to benefit from growth in automotive industry
Analyst’s View
“The strong GMP for DOMS IPO is a positive sign for the company,” said Mr. XYZ, an analyst at XYZ Securities. “The company has a strong track record of growth and is well-positioned to benefit from the growth of the automotive industry in India.”
“However, investors should be aware of the risks associated with investing in an IPO,” Mr. XYZ added. “These risks include the possibility of a decline in the stock price after listing.”
Conclusion
DOMS IPO is a promising opportunity for investors who are looking to invest in the automotive industry in India. The company has a strong track record of growth and is well-positioned to benefit from the growth of the industry. However, investors should be aware of the risks associated with investing in an IPO.
