Mumbai-based writing instruments manufacturing company Flair Writing Industries mobilised Rs 177.9 crore from investors through its anchor book on November 21, a day before the public issue launch.
The initial public offering (IPO) will be opened for subscription on November 22, with a price band of Rs 288-304 per share. The closing date will be November 24.
Flair in its filing to exchanges said it has finalised the allocation of 58,51,972 equity shares to anchor investors at Rs 304 per share.
Marquee names like Theleme India Master Fund, Natixis International Funds, Troo Capital, Winro Commerical, SBI Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Tata Mutual Fund, Mirae Asset Mutual Fund, ICICI Prudential Life Insurance Company, and Carnelian Structure Shift Fund invested in the company via anchor book.
"Out of the total allocation of 58,51,972 equity shares to the anchor investors, 27,70,264 equity shares (i.e. 47.34 percent of the total allocation to Anchor Investors) were allocated to 6 domestic mutual funds that have applied through a total of 14 schemes," the company said.
Flair which manufactures pens, stationery products and calculators is planning to mop up Rs 593 crore via public issue in the current week, at the upper price band.
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The IPO comprises a fresh issuance of shares worth Rs 292 crore by the company, and an offer-for-sale (OFS) of Rs 301 crore worth of shares by the Rathod family.
Before the filing of the red herring prospectus with the Registrar of Companies, the company raised Rs 73 crore in a pre-IPO placement of 24.01 lakh equity shares at a price of Rs 304 per share. Accordingly, the fresh issue size of the IPO has been reduced to Rs 292 crore, from Rs 365 crore earlier.
Also read: Gandhar Oil Refinery IPO: Investors mop up Rs 150 crore via anchor book
Flair will utilise net fresh issue proceeds for setting up a new manufacturing facility for writing instruments in Valsad at a cost of Rs 55.99 crore. Further, it will spend Rs 86.75 crore for capital expenditure, and Rs 77 crore for working capital requirements.
The debt amounting to Rs 43 crore will be repaid by the company via fresh issue proceeds, and the remaining funds will be used for general corporate purposes.
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Flair Writing Industries will be amongst four IPOs opening for subscription on November 22, along with Gandhar Oil Refinery, Tata Technologies, and Fedbank Financial Services.
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