FLAIR WRITING INDS IPO SUBSCRIBED 6.11 TIMES

Published on Nov 23, 2023 17:36

The initial public offer (IPO) of Flair Writing Industries received bids for 8,80,71,669 shares as against 1,44,13,188 shares on offer, according to stock exchange data at 17:00 IST on Thursday (23 November 2023). The issue was subscribed 6.11 times.

The issue opened for bidding on Wednesday (22 November 2023) and it will close on Friday (24 November 2023). The price band of the IPO is fixed at Rs 288-304 per share. An investor can bid for a minimum of 49 equity shares and in multiples thereof.

The public offer consists of comprises of fresh issue of Rs 292 crore and an offer for sale of Rs 301 crore.

The company proposes to utilize the net proceeds from the fresh issue towards setting up a new manufacturing facility for writing instruments in district Valsad, Gujarat amounting Rs 55.99 crore, funding capital expenditure of company and its subsidiary, FWEPL amounting Rs 86.75 crore, funding working capital requirements of the company and its subsidiaries, FWEPL and FCIPL amounting Rs 77 crore, repayment/pre-payment, in part or full, of certain borrowings availed by the company and its Subsidiaries, FWEPL and FCIPL amounting Rs 43 crore and the balance towards general corporate purposes.

Ahead of the IPO, Flair Writing Industries on Tuesday (21 November 2023) raised Rs 177.9 crore from anchor investors. The board allotted 58,51,972 shares at Rs 304 each to anchor investors.

Flair Writing Industries (Flair) is among the top three players in the overall writing instruments industry and occupy a market share of approximately 9% in the overall writing and creative instruments industry in India, as of 31 March 2023. The company manufactures and distributes writing instruments including pens, stationery products and calculators. It has an extensive range of products across various price points and cater to a broad range of consumers, including students, professionals and offices.

As of 31 March 2023, Flair sold 1,303.60 million units of pens, of which 975.30 million units or 74.82 % was sold domestically, and 328.30 million units or 25.18% was exported globally.

The company has reported a total income and a net profit of Rs 246.70 crore and Rs 32.17 crore for the three months ended on 30 June 2023.