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  • Writer's pictureJatin Agarwal

Flair Writing IPO

Flair Writing logo

Introduction Flair Writing Industries Limited, a prominent manufacturer of writing instruments in India, is set to make its debut on the public stage through an initial public offering (IPO). The company, renowned for its iconic Flair brand, aims to raise ₹593 crore through this IPO. This article delves into the intricate details of Flair Writing's IPO, providing a comprehensive overview for potential investors.

Company Overview Flair Writing Industries Limited, established in 1976, has become a household name in India, synonymous with quality and affordability in writing instruments. The company manufactures a diverse range of pens, stationery products, and calculators, catering to a broad customer base across various segments, including students, professionals, and corporates.

Financial Performance Flair Writing has consistently demonstrated a robust track record of growth and profitability. In the fiscal year 2023, the company recorded a net profit of ₹194 crore, showcasing its financial resilience. The company's revenue stood at ₹1,180 crore in the same fiscal year, reflecting its strong market position.

IPO Overview The proposed IPO comprises a fresh issue of up to ₹292 crore and an offer for sale (OFS) of up to ₹301 crore. The IPO is scheduled to open on November 22, 2023, and close on November 24, 2023. The price band for the IPO has been set at ₹288 to ₹304 per share.

IPO Details

  • IPO Opening Date: November 22, 2023

  • IPO Closing Date: November 24, 2023

  • Listing Date: December 5, 2023

  • Promoter holding (pre and post IPO): 74.74% [pre-IPO holding]% 53.7% [post-IPO holding]%

  • Lot Size: 49 shares

  • IPO Price Band: ₹288 to ₹304 per share

Objectives of the Issue Flair Writing intends to utilize the proceeds from the IPO to:

  • Expand its manufacturing capacity to cater to growing demand

  • Enhance its brand presence and marketing initiatives

  • Pursue strategic acquisitions and partnerships to expand its product portfolio and market reach

  • Strengthen its capital base to support future growth initiatives

Grey Market Premium (GMP) The IPO grey market premium (GMP) for Flair Writing currently stands around ₹45 per share. This indicates that investors in the grey market are willing to pay ₹333 to ₹349 per share for the company's shares, suggesting a strong investor appetite for the IPO.

Conclusion Flair Writing's IPO presents an attractive opportunity for investors to gain exposure to a well-established brand with a demonstrated track record of growth and profitability. The company's focus on expanding its manufacturing capacity, enhancing its brand presence, and pursuing strategic growth opportunities positions it well to capitalize on the expanding demand for writing instruments in India. However, investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in any IPO.

Disclaimer: All information provided is for educational and informational purposes only. Data is sourced from publicly available sources such as the DRHP filed by the company. The website or the author does not guarantee the accuracy of the data; however, we have made every effort to present accurate information to our readers. Please consult a financial advisor or conduct your own analysis before investing/trading in the stock market.

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