Flair Writing Industries IPO: All You Need To Know
The IPO of Flair Writing will be a combination of a fresh issue and an offer for sale.
Flair Writing Industries Ltd. will launch its initial public offering on Wednesday, with a price band of Rs 288–304.
The company plans to raise funds through the issuance and sale of 1.95 crore shares at a face value of Rs 5 each, aggregating up to Rs 593 crore.
The IPO of Flair Writing will be a combination of a fresh issue and an offer for sale. The fresh issue comprises approximately 96.1 lakh shares in the upper price band of Rs 304 for Rs 292 crore. The OFS portion of the IPO comprises the sale of 99 lakh shares at the upper price band of Rs 304 for Rs 301 crore.
The company, in consultation with the book-running lead managers, undertook a pre-IPO placement of 24 lakh equity shares at an issue price of Rs 304 per share for a cash consideration aggregating to Rs 73 crore on Nov. 10.
The size of the fresh issue has been reduced to up to Rs 292 crore. Bids can be made for a minimum of 49 equity shares and in multiples of 49 shares thereafter.
The OFS will be held by the promoter shareholders of the company, with five members of the promoter group offering a total of 99.01 lakh shares.
According to the offer, 50% of the net offer is reserved for qualified institutional buyers, while 35% of the total issue size is reserved for retail investors. The residual 15% is kept aside for HNI/NII investors.
IPO Details
Offer Opens: Nov. 22.
Offer Closes: Nov. 24
Fresh Issue Size: Rs 292 crore.
OFS Size: Rs 301 crore.
Price Band: Rs 288–304 per share.
Lot Size: 49 shares.
Face Value: Rs 5 per share.
Total Offer Size: Rs 593 crore.
Listing: NSE, BSE.
Shareholding Pattern
The promoters of the company are Khubilal Jugraj Rathod, Vimalchand Jugraj Rathod, Rajesh Khubilal Rathod, Mohit Khubilal Rathod and Sumit Rathod.
Business
Established in 1976, Flair specialises in crafting writing instruments tailored to the ever-evolving market. With ISO 9001:2015 and ISO 14001:2015 certifications, the company aligns with global business and social standards.
It has forged partnerships with key players in the writing industry and owns brands like Flair, Hauser, Pierre Cardin, Flair Creative, Flair Houseware and Zoox. In the last financial year, Flair achieved sales of 1,303.6 million pens, with 74.82% sold domestically and 25.18% exported globally.
Recently, the company expanded into houseware products like casseroles, bottles, storage containers, and more, facilitated by its subsidiary Flair Writing Equipments Pvt.
Use Of Proceeds
The company intends to utilise the net proceeds from the issue towards the funding of the following:
Setting up a new manufacturing facility for writing instruments in Gujarat's Valsad district.
Funding capital expenditure of the company and its subsidiary, FWEPL.
Funding working capital requirements of the company and its subsidiaries, FWEPL and Flair Cyrosil Industries Pvt.
Repayment/prepayment in part or full of certain borrowings availed by the company and its subsidiaries, FWEPL and FCIPL.
General corporate purposes.
Risks
Flair Writing's success in the creative and writing instrument industry relies entirely on its capability to meet and adapt to consumer needs. Therefore, any shortcoming in effectively implementing their growth strategy and managing it could result in financial and other losses.
A substantial portion of the company's revenue is derived from the Flair, Hauser and Pierre Cardin brands. Any damage to their name and reputation may lead to a decline in revenue.
The writing instrument industry is fiercely competitive, featuring well-established brands like Reynolds, Linc and Camlin. Should these competitors provide more efficient or cost-effective products, it has the potential to make Flair's offerings obsolete.
