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16 January 2024

Flair Writing IPO: A Triumph of Comprehensive Success

Introduction:

In a remarkable achievement, Flair Writing Industries Limited recently concluded a noteworthy Initial Public Offering (IPO), successfully raising Rs 593.00 crores. The IPO, designed as a book-built issue, comprised a fresh issue of 0.96 crore shares valued at Rs 292.00 crores and an offer for sale of 0.99 crore shares totaling Rs 301.00 crores.

Key Milestones:

Bidding Period	November 22 to November 24, 2023
Allotment Date	November 29, 2023
Listing Date	December 1, 2023

Issue Highlights:

Price Band	₹288 to ₹304 per share
Lot Size	49 shares
Minimum Investment	₹14,896 for retail investors

Financial Overview:

Total Issue Size	19,506,578 shares, aggregating ₹593.00 Crores
Pre-IssueShareholding	95,790,115 shares
Post-IssueShareholding	105,395,378 shares

Management and Registration:

Lead Managers	Nuvama Wealth Management Limited and Axis Capital Limited
Registrar	Link Intime India Private Ltd.

Promoter Stake:

Pre-Issue	97.49%
Post-Issue	79.21%

Corporate Landscape:

Founded in 1976, Flair Writing Industries Limited specializes in manufacturing writing instruments and household goods. The company owns multiple pen brands and has diversified into products such as casseroles. With 11 manufacturing plants, Flair maintains a substantial presence in both domestic and international markets.

Financial Performance:

Metric	Growth (%)
Revenue Increase	62.39%
Profit After Tax Rise	114.14%

Key Financial Metrics:

Market Capitalization (Rs)	3204 Crores
Return on Equity (ROE)	31.17%
Return on Capital Employed (ROCE)	31.24%
Debt/Equity Ratio	0.26
Return on Net Worth (RoNW)	31.17%

Objectives of the Issue:

The IPO proceeds are earmarked for the establishment of a new manufacturing facility, capital expenditure, working capital, and the repayment/pre-payment of borrowings.

IPO Subscription Status:

The Flair Writing IPO witnessed overwhelming interest, being oversubscribed by 49.28 times. Notably, Qualified Institutional Buyers (QIBs) showed strong interest (122.02 times), along with significant participation from Non-Institutional Investors (NIIs) at 35.23 times and retail investors at 13.73 times.

Conclusion:

Flair Writing Industries Limited's triumphant IPO underscores investor confidence in its diverse portfolio and strategic vision. With a robust financial performance and a promising outlook, Flair Writing is well-positioned for sustained market success, making it an appealing choice for investors seeking medium to long-term rewards.

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