Shares of DOMS Industries rallied 5.6% to hit ₹2,239.05 after the company announced its asset purchase agreement with Reynolds Pens India and five other entities for the acquisition of writing instruments and school supplies assets. The buying momentum came after the company entered into an asset purchase agreement dated June 10, 2026 with Reynolds Pens India Private Limited and five other entities — 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. — all subsidiaries of Newell Brands Inc., for the acquisition of assets, contracts, employees, intellectual property, and associated liabilities relating to the manufacture and sale of pens, markers, highlighters, and school supplies under the Reynolds brand.
The company has entered into an asset purchase agreement dated June 10, 2026 with Reynolds Pens India Private Limited and five other entities — 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. — all subsidiaries of Newell Brands Inc., for the acquisition of assets, contracts, employees, intellectual property, and associated liabilities relating to the manufacture and sale of pens, markers, highlighters, and school supplies under the Reynolds brand. The transaction covers plant, machinery, and moulds, contracts, and social media accounts from Reynolds Pens India; copyrights, trademarks, and domain names from Luxembourg Brands S.à r.l.; and patents and designs from Sanford L.P.
The aggregate consideration for the transaction is ₹31 crore (approximately $3.7 million), excluding inventory value, with completion scheduled for July 1, 2026. The consideration is allocated as follows: equipment at ₹30.71 crore, trademarks at ₹125,000, patents and designs at ₹50,000, and copyrights at ₹4, with contracts, domain names, and social media accounts transferred at nil consideration. The transaction is an asset purchase and does not involve any change in the company's shareholding structure or control. The company clarified that it does not hold any shareholding in any of the seller entities.
The acquisition is expected to strengthen DOMS Industries' product portfolio and market presence in the writing instruments and school supplies segment — a natural adjacency to its existing stationery business. As part of the agreement, the company will acquire key intellectual property rights associated with the Reynolds brand, while Reynolds Pens India will continue to use the Reynolds name in its corporate identity under a royalty-free licence arrangement. Additionally, Sanford, L.P. will grant DOMS a royalty-free licence to use the 'Paper Mate' brand to fulfil certain license agreements that will be transferred to the company. The Reynolds brand carries significant historical value, being 81 years old and officially founded in the United States on October 29, 1945, when Milton Reynolds introduced the country's first retail ballpoint pen at a Gimbels department store in New York. Reynolds Pens made its India debut in the 1980s and local manufacturing began in 1998.
The acquisition comes at a time when DOMS Industries is pursuing an aggressive expansion strategy with strong financial fundamentals. The company reported a 17.1% increase in consolidated net profit to ₹56.7 crore in Q4 FY26 as against ₹48.4 crore posted in Q4 FY25, while revenue from operations surged 18.7% to ₹604 crore in Q4 FY26 from ₹508.7 crore recorded in the corresponding quarter last year. As of March 31, 2026, the company had a cash balance of ₹61.8 crore and generated ₹254.3 crore in operating cash flow during FY26. Management has guided for a ₹250-275 crore capital expenditure programme in FY27 and has indicated that the company will remain in a high-capex cycle for the next three years as it develops its 45-acre manufacturing facility and newly acquired land.
