Flair Writing Industries has commenced its initial public offering (IPO) today, with the goal of raising ₹593 crore. The company, known for its strong presence in the writing instruments market, is offering shares at a price range of ₹288–304 per share. The IPO includes a fresh issue of shares worth ₹292 crore and an offer for sale (OFS) by the founding members amounting to ₹301 crore.
The total offer consists of nearly two crore shares at a face value of ₹5 each. The funds raised from the IPO will be allocated to various strategic initiatives, including:
- Establishing a new production facility in Valsad
- Capital expenditures totaling ₹86.75 crore
- Meeting working capital requirements of ₹77 crore
- Settling existing debts
Anchor investors have already shown confidence in Flair Writing's growth potential, committing ₹177.9 crore at the upper price band of ₹304 per share ahead of the public offering. Notable mutual funds purchased over fifty-eight lakh shares during this anchor round.
The subscription period for Flair Writing's IPO is set to run until Friday, November 24, with an expected listing on major stock exchanges like NSE and BSE on December 5. As of late morning today, early subscription data indicated a nearly forty percent overall subscription rate, with retail investors showing more interest compared to non-institutional participants; institutional and employee reserved categories have yet to begin participating.
Analysts have weighed in favorably on Flair Writing's market prospects. Reliance Securities has endorsed subscribing to the IPO due to the company's industry dominance and significant growth rates that exceed sector norms. Ventura Securities also recommends subscription, citing beneficial industry growth projections and favorable valuation compared to industry standards.
Financial performance for Flair Writing has been impressive with revenue figures reaching Rs 246.6 crore and net profits amounting to Rs 32.1 crore as of the June quarter end. The company has also reported robust revenue growth with a compound annual growth rate (CAGR) of 14%, which surpasses the industry average.
In preparation for the IPO, a private placement reduced the initial offering volume after securing ₹73 crore in investments. Financial guidance for the public offering is provided by Nuvama Wealth Management and Axis Capital (NYSE:AXS), with registration facilitated through Link Intime India Pvt Ltd.
Investors have also observed a grey market premium of ₹60 over the upper band limit, indicating positive sentiment towards the IPO among market participants.
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