Flair Writing Industries' IPO Oversubscribed 4.5x on Day 2

23 Nov 2023 , 11:31 AM

On November 23, the second day of bidding, Flair Writing Industries’ Rs 593 crore IPO achieved a subscription rate of 4.50 times. The company received bids for 6.48 crore shares against the issue size of 1.44 crore shares. Click here to subscribe the IPO.

Notably, retail investors exhibited strong interest, subscribing 5.65 times, while non-institutional investors and qualified institutional buyers oversubscribed at 6.86 times and 0.72 times the allotted quota, respectively.

The IPO consists of a fresh issue of 96.05 lakh shares worth Rs 292 crore and an offer-for-sale of 99.01 lakh shares worth Rs 301 crore. The price band for the issue, set to close on November 24, ranges from Rs 288 to Rs 304 per share. Flair Writing Industries’ promoters include Khubilal Jugraj Rathod, Vimalchand Jugraj Rathod, Rajesh Khubilal Rathod, Mohit Khubilal Rathod, and Sumit Rathod.

The proceeds from the fresh issue will be utilized to establish a new manufacturing facility for writing instruments in Valsad, with an investment of Rs 55.99 crore. Additionally, the company plans to allocate Rs 86.75 crore for capital expenditure and Rs 77 crore to meet working capital requirements. The strong subscription figures indicate investor confidence in Flair’s growth prospects and the appeal of its IPO.