Flair Writing IPO Set to Open: Key Insights and Expectations for Investors

Flair Writing Industries IPO: Flair Writing IPO date of subscription is scheduled for Wednesday, November 22. Flair is a company that designs and manufactures writing instruments specifically suited for the ever-evolving market of today.

The company’s listed industry peers are Linc Ltd (with P/E ratio of 33.50), Kokuyo Camlin Ltd (with P/E ratio of 56.82), and Cello World Ltd, as per Red-herring prospectus (RHP).

According to CRISIL, Flair Writing is one of the top three companies in the Indian writing instruments market, with revenue of ₹915.55 crore in the financial year 2023. As of March 31, 2023, the company held a 9% market share in the country’s writing and creative instruments market. The company is also one of the top two organised players, according to CRISIL, whose revenue growth has outpaced the growth rate of the writing and creative instrument industries as a whole.

For more than 45 years, the company’s main brand, “Flair,” has been a market presence. With a wide range of products at different price points, Flair Writing serves a diverse clientele that includes offices, professionals, and students. As per CRISIL, the company had the biggest distributor/dealer network and wholesale/retailer network in the writing instruments segment in India, when compared to other major organised players in the writing and creative instruments industry like DOMS, Camlin, Linc, and Luxor. According to CRISIL, the company held a 7.1% market share in the export of writing and creative instruments during the Financial Year 2023, as stated in the company’s RHP.

Between the financial year ending on March 31, 2023, and March 31, 2022, Flair Writing Industries Limited saw an increase in revenue of 62.39% and profit after tax (PAT) of 114.14%, as per reports.

Here are the 10 key things to know about Flair Writing IPO:  

  1. Flair IPO date: Flair Writing IPO date of subscription is scheduled for Wednesday, November 22, and will close on Friday, November 24.
  2. Flair IPO price band: Flair Writing Industries Limited IPO price band has been set in the range of ₹288 to ₹304 per equity share of face value of ₹5.

  3. Flair IPO anchor investor date: The allocation to anchor investors for Flair Writing Industries Limited IPO is scheduled to take place on Tuesday, November 21.

  4. Flair IPO lot size: Flair IPO lot size is 49 equity shares and in multiples of 49 equity shares thereafter.  

  5. Flair Writing Industries Limited IPO details: Flair Writing IPO comprises a fresh issue of shares of up to ₹292 crore and an offer for sale (OFS) of equity shares with face value of ₹2 each by a promoter and others aggregating up to ₹301 crore. Flair Writing IPO size is ₹593 crore.  

  6. Flair IPO objectives: The following uses of the net proceeds of the new issue include establishing the New Valsad Unit, a new writing instrument manufacturing facility in Gujarat’s District Valsad; funding working capital needs for the company and its subsidiaries, Flair Writing Equipments Private Limited (FWEPL); financing capital expenditures for the company and its subsidiaries, FWEPL and Flair Cyrosil Industries Private Limited (FCIPL); funding the repayment or prepayment, in full or in part, of certain borrowings taken out by the company and its subsidiaries, FWEPL and FCIPL; and serving general corporate purposes.
  7. Flair Writing IPO Promoters: The company’s promoters are Rajesh Khubilal Rathod, Mohit Khubilal Rathod, Sumit Rathod, Vimalchand Jugraj Rathod, and Khubilal Jugraj Rathod.  
  8. Lead Manager and Registrar of Flair IPO: The Flair Writing IPO’s book running lead managers are Nuvama Wealth Management Limited and Axis Capital Limited, and the issue’s registrar is Link Intime India Private Ltd.
  9. Flair IPO Reservation: Flair Writing Industries Limited IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
  10. Flair Writing Industries Limited IPO GMP today: Flair Writing IPO GMP today or grey market premium is +68, which means shares are trading at their premium of ₹68 in the grey market, according to investorgain.com

    Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Flair Writing Industries Limited share price was indicated at ₹372 apiece, which is 22.37% higher than the IPO price of ₹304.