SEBI Greenlights Flair Writing Industries, Muthoot Microfin, and Happy Forgings for IPO Launch

31 Oct 2023 , 09:14 AM

Flair Writing Industries, a pen manufacturer intending to raise Rs 745 crore via an IPO, received an observation letter from Sebi on October 23. The IPO comprises a Rs 365 crore fresh share issuance by the company and a Rs 380 crore offer-for-sale by the Rathod family.

Similarly, Muthoot Microfin and Happy Forgings received observation letters from Sebi on October 26 and October 27, respectively, as disclosed by Sebi’s draft offer document processing status on October 30.

Prior to filing the red herring prospectus with the Registrar of Companies, Flair Writing is contemplating issuing shares worth Rs 73 crore through a private placement or other methods. This pre-IPO placement might impact the fresh issue size.

The intended utilization of the net proceeds includes establishing a new manufacturing facility in Valsad, Gujarat, costing Rs 95.62 crore, along with capital expenditures of Rs 86.75 crore for Flair Writing Equipments. Additionally, funds will be allocated towards working capital, debt repayment, and general corporate purposes.

Nuvama Wealth Management and Axis Capital are the merchant bankers to the issue.

Happy Forgings:

In August 2023, Punjab-based Happy Forgings submitted a preliminary prospectus to the market regulator for an upcoming IPO, aiming to raise funds.

The initial public offering will encompass two components: a fresh issuance of shares valued at Rs 500 crore and an Offer for Sale (OFS) of 80.55 lakh equity shares by both the promoter and investor.

The OFS will see Paritosh Kumar Garg (HUF) and India Business Excellence Fund – III divesting 53.7 lakh and 26.85 lakh shares, respectively. Happy Forgings, positioning itself as the fourth-largest engineering-driven manufacturer of heavy forged and high precision machined components in India, plans to allocate the major chunk of the net fresh proceeds – totaling Rs 213.6 crore – towards acquiring equipment, plant, and machinery.

The remaining capital raised will be allocated to repay a debt of Rs 190 crore, with the balance earmarked for general corporate purposes.

Happy Forgings primarily serves domestic and global original equipment manufacturers (OEMs), producing commercial vehicles, farm equipment, off-highway vehicles, as well as machinery for industries such as oil and gas, power generation, railways, and wind turbines.

The book-running lead managers overseeing the issue are JM Financial, Axis Capital, Equirus Capital, and Motilal Oswal Investment Advisors.