DOMS Industries shares jumped 5.8 per cent on BSE, logging an intraday high at ₹2,245.7 per share. At 11:49 AM, DOMS Industries’ share price pared some gains, but was up 4.8 per cent at ₹2,223.1 per share. In comparison, the BSE Sensex was up 0.27 per cent at 74,185.38.
The buying on the counter came after the company entered into an asset purchase agreement with Reynolds Pens India and five other entities — 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 aggregate consideration for the transaction is $3.7 million, excluding inventory value, with completion scheduled for July 1, 2026. The transaction is not a related party transaction and does not involve any change in the shareholding or control of DOMS Industries.
What is DOMS acquiring?
The asset purchase 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 consideration is allocated as follows: equipment at $3,524,996, 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 also includes ancillary agreements — an IP assignment agreement and a supply agreement under which Reynolds Pens India will supply pen tips to DOMS — to be executed at completion. Post completion, DOMS will grant Reynolds Pens India a royalty-free licence to use the Reynolds brand as part of its corporate name for ancillary purposes.
Strategic rationale
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.
Source: Business-Standard