Flair Writing Industries IPO to Launch on November 22 with Rs 593 Crore Offer; Sets Price Band at Rs 288-304 per share

20 Nov 2023 , 11:21 AM

Mumbai-based Flair Writing Industries is gearing up to launch its initial public offering (IPO) on November 22. With a price band of Rs 288-304 per share, the IPO is set to close on November 24, and the allotment process is expected to be finalized on November 30, 2023. The company aims to list on both BSE and NSE, with a tentative listing date of December 5, 2023.

IPO Details: Flair Writing Industries plans to raise Rs 593 crore through its maiden public issue, which includes a fresh issuance of shares worth Rs 292 crore and an offer-for-sale (OFS) of Rs 301 crore by the Rathod family. The company had initially aimed for a larger issue size of Rs 745 crore, but it was revised after a pre-IPO placement where Flair raised Rs 73 crore through a preferential issue to Volrado Venture Partners Fund III – Beta.

Utilization of Funds: The net fresh proceeds from the IPO will be strategically utilized by Flair Writing Industries. A significant portion, Rs 95.6 crore, will be allocated for setting up a new manufacturing facility for writing instruments in Valsad, Gujarat. Additionally, Rs 86.75 crore is earmarked for capital expenditure, Rs 77 crore for working capital requirements, and Rs 43 crore will be used to repay debts. The remaining funds will be allocated for general corporate purposes.

Issue Allocation and Investor Opportunities: Flair has reserved 50% of the issue size for qualified institutional buyers, 15% for high net worth individuals, and the remaining 35% for retail investors. Investors can bid for a minimum of 49 equity shares, with multiples of 49 shares thereafter. This structure allows retail investors to participate with a minimum investment of Rs 14,896 per lot (49 shares) and a maximum investment of Rs 1,93,648 (637 shares).

Market Position and Financials: Flair Writing Industries holds a prominent position in the writing instruments industry, ranking among the top three players. With a robust revenue of Rs 915.55 crore in FY23, the company commands a market share of approximately 9% in the overall writing and creative instruments industry in India. Flair’s products, marketed under brands like Flair, Hauser, Pierre Cardin, and ZOOX, are manufactured across 11 plants in Gujarat, Maharashtra, Daman, and Dehradun.

Lead Managers and Market Confidence: Nuvama Wealth Management and Axis Capital serve as the book running lead managers to the issue.