DOMS Industries Limited has announced that its Board of Directors has approved the acquisition of an additional 13% stake in Pioneer Stationery Private Limited (Pioneer), a subsidiary of the company.
This acquisition will be made from certain existing shareholders, as part of the ongoing strategic expansion of DOMS Industries in the paper stationery market. The transaction will increase DOMS Industries’ shareholding in Pioneer to 64% of the total paid-up equity share capital, further solidifying its control over the subsidiary.
Initially, the acquisition was set to be completed by April 30, 2025. However, as per the updated agreement between DOMS Industries and the Gala Group Shareholders, the completion date has been extended to July 31, 2025. This extension ensures the smooth progression of the deal, with all other terms and conditions remaining unchanged from the previous communication.
Pioneer Stationery, which operates in the paper stationery industry, is involved in manufacturing, importing, exporting, trading, and retailing various paper-based products.
In the financial year 2023-24, Pioneer reported a revenue of ₹16,010.99 lakhs, a solid performance reflecting its strong position in the market. The decision to acquire the additional stake in Pioneer is aligned with DOMS Industries’ long-term growth strategy in the stationery sector. The company’s management sees this acquisition as a step forward in expanding its market footprint and increasing its overall presence in the industry.
The acquisition is being carried out under the terms of the Shareholding Agreement (SHA) that was entered into by DOMS Industries and the Gala Group Shareholders on August 1, 2015. As part of this agreement, DOMS Industries has been given the right to purchase shares from the Gala Group Shareholders, who have expressed their intention to sell part of their equity in Pioneer.
The company will invest ₹11,07,60,000 (₹11.07 crore) to purchase 7,800 equity shares of Pioneer at a price of ₹14,200 per share. This move is seen as a strategic investment that will provide DOMS Industries with greater control over Pioneer, ensuring enhanced synergy and better growth prospects for the subsidiary.
On April 30, 2025, DOMS Industries share price opened at ₹2,813.30, up from its previous close of ₹2,795.00. At 12:21 PM, the share price of DOMS Industries was trading at ₹2,760.00, down by 1.25% on the NSE.
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By acquiring a larger stake in Pioneer, DOMS Industries is positioning itself for continued expansion and further penetration into the growing paper stationery market, which aligns with its core business strategy. This acquisition is expected to not only strengthen its market position but also drive long-term value creation for shareholders.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 30, 2025, 12:30 PM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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