Flair Writing Industries IPO to open for bidding today: Should you subscribe to the issue?

Flair Writing Industries IPO – The initial public offering (IPO) of Flair Writing Industries will begin bidding on Wednesday, November 22. The stationary products maker would sell its shares for Rs 288-304 per share, with potential investors able to bid for a minimum of one lot of Rs 49 equity shares and multiples thereof. The initial public offering will end on Friday, November 24.

Flair Writing, founded in 1976, is dedicated to inventing and manufacturing writing instruments that are adapted to the ever-changing market. Flair Writing is expected to raise a total of Rs 593 crore through the IPO route, which will include a fresh share sale of Rs 292 crore and an offer for sale (OFS) of up to 9,901,315 equity shares worth Rs 301 crore by the proprietors of the company.

The net proceeds of the offering would be used to fund the establishment of a new writing instrument manufacturing facility in Valsad, Gujarat; funding capital expenditures of the company and its subsidiaries; funding working capital requirements of the company and subsidiaries; repayment/prepayment of certain borrowings; and general corporate purposes.

Flair Writing Industries raised Rs 177.90 crore from anchor investors and distributed 58,51,972 shares at Rs 304 each. Theleme India Master Fund, Natixis International Funds, Troo Capital, Winro Commercial, and a number of local mutual funds and insurance businesses were among the names in the Anchor book.

Flair Writing Industries IPO

Flair is the parent company of various brands, including Flair, Hauser, Pierre Cardin, Flair Creative, Flair Houseware, and Zoox. In the fiscal year 2022-23, the company sold a total of 130.26 crore pens.

The corporation has set aside 50% of the shares for qualified institutional bidders, with the remaining 15% earmarked for non-institutional investors. Retail investors will receive 35% of the shares earmarked for them.

The book running lead managers of the Flair Writing Industries IPO are Nuvama Wealth Management and Axis Capital, and the registrar is Link Intime India. The company’s shares will be listed on both the BSE and the NSE. Here’s what a number of brokerage houses have to say about Flair Writing Technologies’ IPO:

Over FY2023-28, the Indian writing and creative sector is predicted to develop at a CAGR of 7.7-8.4%, while the steel bottle business is expected to increase at a CAGR of 14-16%.