Flair Writing Industries IPO to open on November 22, price band at Rs 288-304 per share

Flair Writing Industries IPO opens on November 22

Mumbai-based Flair Writing Industries is set to open its initial public offering for subscription on November 22, with a price band of Rs 288-304 per share.

The offer will close on November 24, while the anchor book of the issue will be opened for a day on November 21.

The stationery products manufacturing company intends to raise Rs 593 crore via maiden public issue comprising a fresh issuance of shares worth Rs 292 crore and an offer-for-sale (OFS) of Rs 301 crore worth shares by the Rathod family.

The fresh issue size has been reduced to Rs 292 crore, from Rs 365 crore earlier, as before filing the red herring prospectus with the RoC, Flair had raised Rs 73 crore via preferential issue of 24.01 lakh equity shares to Volrado Venture Partners Fund III - Beta, at a price of Rs 304 per share, in a pre-IPO placement.

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Also, the total issue size has been reduced to Rs 593 crore, from Rs 745 crore earlier mentioned in the draft papers filed with the Sebi in July this year.

Flair Writing will be spending net fresh proceeds for setting up a new manufacturing facility for writing instruments in Valsad, Gujarat at a cost of Rs 95.6 crore. Further, Rs 86.75 crore will be used for capital expenditure, and Rs 77 crore for working capital requirements.

Also, the debts amounting to Rs 43 crore will be repaid via issue proceeds, and the remaining funds will be kept for general corporate purposes.

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The writing instruments company has reserved half of the issue size for qualified institutional buyers, 15 percent for high networth individuals and the remainder 35 percent for retail investors.

Investors can make a bid for a minimum of 49 equity shares, and in multiples of 49 shares thereafter. As a result, the minimum investment by retail investors would be Rs 14,896 per lot (49 shares), and the maximum investment by them would be Rs 1,93,648 (637 shares).

Flair is among the top three players in the writing instruments industry with a revenue of Rs 915.55 crore in FY23 and enjoys a market share of approximately 9 percent in the overall writing and creative instruments industry in India. Its products are sold under four brands namely Flair, Hauser, Pierre Cardin, and ZOOX.

The company manufactures its pens and other products from its 11 manufacturing plants in Gujarat, Maharashtra, Daman, and Dehradun.

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The book running lead managers to the issue are Nuvama Wealth Management, and Axis Capital.

This would be the fourth public issue opening during November 22-24, after Tata Technologies, Fedbank Financial Services, and Gandhar Oil Refinery India.