Flair Writing Industries, Muthoot Microfin and Happy Forgings get Sebi nod to float IPOs

Sebi has given the approval to Flair Writing Industries, Muthoot Microfin and Happy Forgings to launch IPOs.

Flair Writing Industries, Muthoot Microfin, and Happy Forgings have received green signal from the capital market regulator Sebi to go ahead with IPO plans.

Flair Writing Industries

Pen maker Flair Writing Industries, as per the draft papers filed with the regulator in July this year, is planning to raise Rs 745 crore via the initial public offering. The IPO will comprise a fresh issuance of shares worth Rs 365 crore by the company, and an offer-for-sale (OFS) of shares worth Rs 380 crore by promoters, i.e. Rathod family.

Flair received an observation letter from Sebi for its IPO on October 23, while the regulator issued the said letter to Muthoot Microfin on October 26 and Happy Forgings on October 27, as per the processing status of draft offer documents published by Sebi on October 30.

In Sebi parlance, the issue of observation letter means the company has received clearance for its IPO papers and now can launch its initial public offering for fund raising.

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Flair Writing may consider the issue of shares worth Rs 73 crore through a private placement, preferential issue or any other method, before filing the red herring prospectus with the Registrar of Companies. If the said pre-IPO placement is undertaken, then accordingly the fresh issue will be reduced.

The writing instruments manufacturing company will utilise net fresh issue proceeds for setting up a new manufacturing facility for writing instruments in Valsad, Gujarat at a cost of Rs 95.62 crore, and capital expenditure of Rs 86.75 crore of the company & subsidiary, Flair Writing Equipments.

Further, Rs 77 crore will be spent on the working capital requirements of the company and subsidiaries, and Rs 43 crore for repaying debts. The remaining net fresh issue proceeds will be kept aside for general corporate purposes.

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

Happy Forgings

Punjab-based Happy Forgings had filed a draft red herring prospectus with the market regulator in August 2023, for fund raising via IPO.

The maiden public issue will consist of a fresh issue of Rs 500 crore worth of shares and an OFS of 80.55 lakh equity shares by promoter and investor.

Paritosh Kumar Garg (HUF) and India Business Excellence Fund – III will be selling 53.7 lakh shares and 26.85 lakh shares respectively, via OFS.

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Happy Forgings which claimed to be the fourth largest engineering-led manufacturer of heavy forged and high precision machined components in India will utilise net fresh proceeds mainly for purchase of equipment, plant and machinery at a cost of Rs 213.6 crore.

Further, the firm will repay its debt amounting to Rs 190 crore and the remaining funds will be utilised for general corporate purposes.

The company primarily caters to domestic and global original equipment manufacturers (OEMs) manufacturing commercial vehicles, farm equipment, off-highway vehicles, and manufacturers of industrial equipment & machinery for oil and gas, power generation, railways and wind turbine industries.

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

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Muthoot Microfin

Microfinance institution Muthoot Microfin intends to mop up Rs 1,350 crore via its maiden public issue, for which it had filed draft papers in June this year.

The offer will comprise a fresh issue of shares worth Rs 950 crore and an OFS of Rs 400 crore worth of shares by promoters and investors.

Promoters will be selling Rs 300 crore worth of shares in the OFS, and the remaining Rs 100 crore shares will be offloaded by London-based private equity fund Greater Pacific Capital WIV.

Further, the company intends to raise Rs 190 crore via the private placement of equity shares before the filing red herring prospectus with the RoC. If it manages to complete the said pre-IPO placement, then the fresh issue size will be reduced to the extent of such pre-IPO placement.

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Muthoot Microfin which provides micro-loans to women customers with a focus on rural regions of India has proposed to utilise the net proceeds from the fresh issue to augment its capital base to meet future capital requirements.

The company is the fourth largest NBFC-MFI in India in terms of gross loan portfolio as of December 2022.

Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets are the merchant bankers to the public issue.