Shares of DOMS Industries Limited fell sharply on 17 June after its Italian promoter group launched a large block deal, flooding the market with supply at a steep discount.

The stock hit a day low of Rs 2,200 on the NSE, down close to 5% from Tuesday’s close of Rs 2,314, before recovering some ground through the session.

Fabbrica Italiana Lapis ed Affini S.p.A., the Italian promoter known as FILA, launched a block deal involving up to 44.1 lakh shares of DOMS Industries on Wednesday morning, according to media reports. 

The shares were offered at a floor price of Rs 2,100 each, a discount of about 9% to the previous close.

The base deal covered 5.2% of DOMS’ equity, with an additional 1.8% greenshoe option, taking the total potential stake on offer to around 7%. 

JP Morgan India and BNP Paribas Securities India ran the deal as joint placement agents.  The offering was restricted to institutional buyers only and was not open to retail investors. 

Following the transaction, FILA’s stake in the company is expected to decline to around 19%.

Days before this block deal, DOMS signed an asset purchase agreement with Reynolds Pens India and other entities of the Newell Brands group, picking up assets tied to pens, markers, highlighters and school supplies sold under the Reynolds brand in India. 

The upfront consideration stands at $3.7 million, excluding inventory.

At 10:44 am DOMS Industries shares were trading at Rs 2,338.00 on the NSE, up 1.04% for the session. The stock is up 1.83% over the past month.

The future of investing is here! Tradz by EquityPandit leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app today and 10x your trading & investing journey!