Flair Writing Industries Secures Rs 177.9 Crore from Anchor Investors Ahead of IPO

22 Nov 2023 , 08:19 AM

Mumbai-based writing instruments manufacturing company, Flair Writing Industries, successfully secured Rs 177.9 crore from investors through its anchor book on November 21, a day before the launch of its much-anticipated Initial Public Offering (IPO).

Flair, in its filing to exchanges, confirmed the finalization of the allocation of 58,51,972 equity shares to anchor investors at Rs 304 per share. Marquee names such as Theleme India Master Fund, Natixis International Funds, Troo Capital, SBI Mutual Fund, HDFC Mutual Fund, and others participated in the anchor book.

Out of the total allocation, 27,70,264 equity shares (approximately 47.34% of the total) were allocated to six domestic mutual funds, applying through a total of 14 schemes.

The IPO is scheduled to open for subscription on November 22, with a price band set at Rs 288-304 per share. The subscription window will close on November 24.

Flair aims to raise Rs 593 crore through the public issue, comprising a fresh issuance of shares worth Rs 292 crore and an offer-for-sale (OFS) of Rs 301 crore by the Rathod family. The net fresh issue proceeds will be allocated for setting up a new manufacturing facility in Valsad, capital expenditure, working capital requirements, and debt repayment. The remaining funds will be earmarked for general corporate purposes.

Prior to filing the red herring prospectus, the company conducted a pre-IPO placement, raising Rs 73 crore through the issuance of 24.01 lakh equity shares at a price of Rs 304 per share. Consequently, the fresh issue size of the IPO was revised to Rs 292 crore, down from the initial Rs 365 crore.