DOMS Industries Shares Slipped Over 4% Amid Block Deal by F.I.L.A.

On December 19, 2024, DOMS Industries shares are likely to draw attention due to a potential block deal involving Fabbrica Italiana Lapis ed Affini S.p.A. (F.I.L.A). DOMS Industries block deal, valued at approximately ₹764 crore, will see F.I.L.A. selling up to 4.57% of its equity stake in DOMS Industries.

As of September 30, 2024, F.I.L.A. held a 30.58% stake in DOMS Industries. The base size for the block deal is ₹509.7 crore (approximately 3.05%), with an option to upsize the deal by an additional ₹254.3 crore (around 1.52%). The floor price for the deal has been set at ₹2,755 per share, which is a 9.6% discount to the closing price of DOMS shares on Wednesday, December 18, 2024.

Announcement by F.I.L.A.

F.I.L.A. has announced the launch of the placement, which will involve up to 2,773,407 equity shares of DOMS Industries, representing up to 4.57% of the company’s equity capital. The shares will be placed through an accelerated book-building process on the stock exchange(s), with the option to adjust the terms or timing of the placement. F.I.L.A. will announce the outcome of the deal upon completion.

Following the block deal, F.I.L.A.’s stake in DOMS will reduce from 30.58% to a level no lower than 26.01%. Despite this reduction, F.I.L.A. intends to maintain its position as a long-term strategic investor and key industrial partner of DOMS. As the largest shareholder post-placement, F.I.L.A. will retain its “relevant shareholder” status in the company’s governance structure.

End of One Year Lock-In Period

The end of the one-year shareholder lock-in period will also make DOMS Industries shares a focal point for investors. Reports indicate that around 2.7 crore shares of DOMS Industries will become eligible for trading. These shares represent 45% of the company’s total outstanding equity.

It is important to note that the expiration of the lock-in period does not automatically mean that all the freed-up shares will be sold in the market. Rather, it means these shares are now eligible for trading, which could influence market sentiment and stock liquidity.

On December 19, 2024, DOMS Industries shares opened at ₹2,902.00 and touched the day low of ₹2,891.55 at 09:30 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.