Flair Writing Industries IPO Subscribed 46.68 Times On Final Day
The IPO was subscribed 46.68 times, as of 6:57 p.m. on Friday.
Flair Writing Industries Ltd. launched its initial public offering on Wednesday, with a price band of Rs 288–304. The IPO was subscribed 2.17 times on its first day and it was subscribed 6.12 times on the second day. The IPO was subscribed 15.28 times, as of 1:21 p.m. on Friday.
The penmaker 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 penmaker 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.
Flair Writing Industries has raised Rs 178 crore from anchor investors ahead of its initial public offering on Nov. 22.
The penmaker allotted 58,51,972 shares at Rs 304 apiece to 23 anchor investors.
The investors included HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, and Tata Mutual Fund, among others.
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.
Business Model
Flair Writing is one of the top three players in the writing and creative instrument industry with a market share of overall 9%, according to CRISIL. The pen maker reported a revenue of Rs. 915.6 crore in the financial year 2023.
Flair Writing also have the fastest growth in revenue compared to others, with a CAGR of approximately 14% in the 2017-2023 in contrast to 5.5% CAGR witnessed in the overall industry.
During the three-month period ended June 30, 2023, Flair Writing sold 34.43 crore units of pens, of which 27.92 crore units or 81.09% was sold domestically, and 6.51 crore units or 18.91% was exported, and in FY2023, we sold 130.4 crore units of pens, of which 97.53 crore units or 74.82% was sold domestically, and 32.83 crore units or 25.18% was exported.
The flagship Flair brand was launched in 1976 with the involvement of certain of our promoters and with a focus on innovative designs and quality writing instruments. Since its launch, the penmaker has managed to become a key brand in the industry and aims to build on this reputation by introducing new range of products.
Subscription Day 3
The IPO was subscribed 46.68 times, as of 6:57 p.m. on Friday.
Institutional investors: 115.60 times
Non-institutional investors: 33.37 times
Retail investors: 13.01 times