DOMS Industries witnessed a significant block deal on Wednesday as promoter group-affiliated FILA Fabbrica Italiana sold a 7% stake in the stationery and art materials manufacturer through a transaction on the National Stock Exchange (NSE). According to latest reports from The Hindu BusinessLine and Business Standard, the block deal involved a large trade of 42.48 lakh shares, representing 7% of total equity, worth ₹934.74 crore. The shares were sold in the price range of ₹2,200.07-2,200.55 apiece on Wednesday, taking the combined transaction value to ₹934.74 crore. The offering was made to institutional and professional investors outside the United States under Regulation S of the US Securities Act of 1933, and to qualified institutional buyers (QIBs) in the United States under Rule 144A, with JP Morgan India and BNP Paribas Securities India acting as joint placement agents. No pricing guidance will be provided until the shares are crossed on the stock exchange.
Domestic institutional investors participated actively in the transaction, with SBI Mutual Fund and Axis Mutual Fund emerging as major buyers. As reported by The Hindu BusinessLine and Business Standard, SBI Mutual Fund purchased 9.32 lakh shares representing a 1.54% stake in DOMS Industries, while Axis Mutual Fund acquired 3.61 lakh shares at ₹2,200 per share, representing a 0.6% holding in the firm. The disclosed purchases by Axis Mutual Fund and SBI Mutual Fund were valued at around ₹284.77 crore. Following the transaction, FILA's holding in DOMS Industries declined to 19.01% from around 26.01% earlier. The combined shareholding of promoters and promoter group entities also fell to 63.39% from 70.39%. At the March quarter end, SBI Mutual Fund owned a 5.88% stake while Axis MF had a 3.18% holding in DOMS Industries. The remaining shares were absorbed by other investors participating in the transaction, though details of other buyers could not be ascertained on the exchange.
The block deal triggered sharp volatility in DOMS Industries shares, with the stock declining as much as 4.92% to an intraday low of ₹2,200 on the NSE in early trade. According to Business Today, a total of ₹1,116.92 crore worth shares changed hands on the counter within the first 15 minutes of trade, reflecting heavy institutional participation. However, following the transaction, shares of DOMS Industries rose over 1% to trade at ₹2,356.20 apiece on Thursday, demonstrating strong institutional demand that helped absorb the large supply of shares entering the market. Despite the reduction in promoter shareholding, the recovery also demonstrated investor confidence in the company's long-term growth prospects within the institutional investment community.
DOMS Industries reported robust financial performance for Q4FY26 with 17.1% year-on-year consolidated net profit growth to ₹56.7 crore, compared to ₹48.4 crore in Q4FY25. As reported by The Financial Express, the company's revenue from operations rose 18.7% YoY to ₹604 crore in the fourth quarter of FY26, compared with ₹508.7 crore in the same quarter a year back. EBITDA came in at ₹100.9 crore in Q4FY26, up 14.4% YoY from ₹88.3 crore in the corresponding quarter, though EBITDA margin contracted to 16.7% for the reporting quarter, in comparison to 17.3% in Q4 FY25. The growth was driven by strong volume-led demand across key categories, with increased capacity and new launches supporting performance across Scholastic Art Materials, Office Supplies, Paper Stationery, and Hobby & Craft segments.
Separately, DOMS Industries has been pursuing growth initiatives to strengthen its position in the writing instruments segment. On June 10, the company informed stock exchanges that it had entered into an Asset Purchase Agreement with Reynolds Pens India Private Limited, Sanford, L.P., Luxembourg Brands S.à r.l., Newell Europe S.à r.l., NWL Valence Services S.A.S. and NWL Switzerland S.à r.l. The transaction covers the acquisition of plant and machinery, moulds, contracts and social media accounts from Reynolds Pens India; copyrights, trademarks and domain names from Luxembourg Brands; and patents and designs from Sanford, L.P. The aggregate consideration for the transaction is $3.7 million, excluding inventory. The acquisition is expected to strengthen DOMS Industries' presence in the writing instruments market while expanding its portfolio of brands, intellectual property and manufacturing capabilities. PL Capital has retained a 'Buy' rating on the stock with a target price of ₹2,883, citing the potential value accretion from leveraging DOMS' distribution strength.
