DOMS Industries Limited (DOMS) has made a significant move by acquiring an additional 13% stake in its subsidiary, Pioneer Stationery Private Limited (Pioneer), which will increase DOMS's shareholding in Pioneer to 64% of the total paid-up equity share capital. This acquisition was approved by the Board of Directors of DOMS Industries Limited at its meeting held on March 27, 2025.

Details of the Acquisition

As part of the acquisition, DOMS Industries will purchase 7,800 equity shares from certain existing shareholders of Pioneer at a price of ₹14,200 per share, amounting to a total investment of ₹11.07 crore. The transaction is expected to be completed on or before April 30, 2025.

This move is consistent with DOMS’s growing focus on expanding its presence in the stationery industry, as Pioneer is engaged in the business of manufacturing, importing, exporting, trading, and selling paper stationery products. The acquisition is aligned with the company’s strategic goals of strengthening its position in the stationery sector.

Transaction Structure and Regulatory Compliance

The acquisition falls under the category of a related party transaction, as the promoters and members of the promoter group have an interest in Pioneer, both through shareholding and directorship. However, the transaction is being carried out on an arm's length basis, ensuring transparency and fairness in the process.

As required by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the disclosure has been made to both the BSE and NSE, and no governmental or regulatory approvals are required for this acquisition.

Pioneer Stationery Pvt. Ltd. Overview

Pioneer Stationery was incorporated on March 28, 2005, and is based in India. The company specializes in the production and distribution of paper stationery products. In the financial year 2023-24, Pioneer recorded a revenue of ₹16,010.99 lakhs, reflecting significant growth in its operations over the past three years. Here’s a quick look at Pioneer’s recent financial performance:

• 2023-24 Revenue: ₹16,010.99 lakhs

• 2022-23 Revenue: ₹13,956.56 lakhs

• 2021-22 Revenue: ₹7,301.19 lakhs

Pioneer’s strong market presence and consistent growth in the stationery industry make it a valuable asset for DOMS Industries. This acquisition further strengthens DOMS’s position in the sector and creates opportunities for future growth and profitability.

Strategic Impact of the Acquisition

This acquisition aligns with DOMS Industries’ broader vision to enhance its footprint in the stationery industry. The increase in shareholding not only strengthens DOMS's control over Pioneer but also provides the company with enhanced strategic flexibility to scale its operations and explore new business opportunities within the stationery sector.

Conclusion

By increasing its stake in Pioneer Stationery, DOMS Industries Limited is reinforcing its commitment to growth and development in the stationery industry. This acquisition, coupled with its solid financial backing and strategic alignment, sets the stage for enhanced long-term success in the market. The move also reflects DOMS's focus on maximizing value for its stakeholders and maintaining a competitive edge in the industry.

As the transaction progresses, DOMS Industries remains committed to maintaining high standards of corporate governance and compliance with regulatory requirements.

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