17-Nov-2023
2 mins read
The IPO date for Flair Writing Industries is November 22, 2023 to November 24, 2023. The issue pertains to the sale of 9,901,315 equity shares and a fresh issue of 9,605,263 equity shares of Rs 5 each. Thanks to approval from the capital markets regulator SEBI, Flair Writing Industries Ltd. is now eligible to raise capital through an initial public offering (IPO).
Flair Writing Industries Limited Company Profile
Established in 1976, Flair specializes in the development and production of writing instruments, finely tuned to meet the evolving demands of today’s dynamic markets. The Company prides itself on its adherence to global standards, holding certifications in ISO 9001:2015 and ISO 14001:2015, ensuring alignment with international business and social norms.
Business Focus and Certifications: Flair’s core focus revolves around crafting writing instruments tailored to the contemporary market landscape. Their commitment to quality and conformity to recognized standards is evident through their ISO certifications. These certifications underscore Flair’s dedication to maintaining high-quality manufacturing processes and environmentally conscious practices.
Partnerships and Brand Portfolio: The company has cultivated robust partnerships with prominent leaders in the writing industry, fostering mutually beneficial relationships. Flair boasts ownership of multiple brands, including FLAIR, HAUSER, PIERRE CARDIN, FLAIR CREATIVE, FLAIR HOUSEWARE, and the ZOOX. This diverse portfolio caters to different market segments, showcasing Flair’s versatility and market adaptability.
Sales Performance and Market Presence: In the financial year 2022-23, Flair achieved remarkable sales figures, distributing a total of 1,303.60 million units of pens. Notably, 74.82% (975.30 million units) of these sales were made within the domestic market, while 25.18% (328.30 million units) were exported globally. This global reach signifies Flair’s presence and recognition beyond national borders, establishing its products on an international scale.
Diversification into Houseware Products: In a strategic move towards diversification, Flair recently expanded its product line to include a wide range of houseware products. This expansion was made possible through one of its subsidiaries, FWEPL. The new line encompasses various household essentials such as casseroles, bottles, storage containers, serving solutions, cleaning solutions, baskets, and paper bins. This expansion showcases Flair’s agility in exploring and entering new market segments, leveraging its expertise and resources to cater to evolving consumer needs.
The Objectives of Flair Writing Industries Limited IPO
The utilization plan for the net proceeds from the Fresh Issue, calculated as the gross proceeds of the Fresh Issue minus the Company’s share of Offer-related expenses, is outlined as follows:
- Allocating funds towards the setup of a state-of-the-art manufacturing facility for writing instruments in District Valsad, Gujarat, referred to as the “New Valsad Unit.”
- Directing financial resources to fund the capital expenditure requirements of both the Company and its subsidiary, FWEPL, to support ongoing and future operational enhancements.
- Allocating funds to meet the working capital needs of the Company and its subsidiaries, namely FWEPL and FCIPL, ensuring smooth and efficient business operations.
- Utilizing proceeds for the partial or complete repayment of certain borrowings secured by the Company and its subsidiaries, including FWEPL and FCIPL, thereby reducing financial obligations.
- Allocating funds for general corporate purposes, encompassing various operational and strategic needs that contribute to the overall growth and stability of the Company.
Financial Performance of Flair Writing Industries Limited (In Crore)
| Period Ended | 30-Jun-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 765.04 | 684.18 | 557.49 | 480.66 |
| Revenue | 248.5 | 954.29 | 587.64 | 310.87 |
| Profit After Tax | 32.14 | 118.1 | 55.15 | 0.99 |
| Net Worth | 470.16 | 437.99 | 319.86 | 264.65 |
| Reserves and Surplus | 423.46 | 391.29 | 296.5 | 241.31 |
| Total Borrowing | 126.67 | 115.59 | 126.33 | 130.31 |
Key Performance Indicator
| KPI | Values |
| P/E (x) | 23.36 |
| Post P/E (x) | 25.7 |
| Market Cap (Rs in Cr.) | 3204 |
| ROE | 31.17% |
| ROCE | 31.24% |
| Debt/Equity | 0.26 |
| EPS (Rs) | 12.33 |
| RoNW | 31.17% |
Important Dates for Flair Writing Industries Limited IPO
| IPO Date | November 22, 2023 to November 24, 2023 |
| Listing Date | 5-Dec-23 |
| Face Value | Rs 5 per share |
| Price Band | Rs 288 to Rs 304 per share |
| Lot Size | 49 Shares |
| Total Issue Size | 19,506,578 shares (aggregating up to Rs 593.00 Cr) |
| Fresh Issue | 9,605,263 shares (aggregating up to Rs 292.00 Cr) |
| Offer for Sale | 9,901,315 shares of Rs 5 (aggregating up to Rs 301.00 Cr) |
| Issue Type | Book-Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 93,388,800 |
Flair Writing Industries Limited IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Flair Writing Industries Limited IPO Lot Size
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 49 | Rs 14,896 |
| Retail (Max) | 13 | 637 | Rs 193,648 |
| S-HNI (Min) | 14 | 686 | Rs 208,544 |
| S-HNI (Max) | 67 | 3,283 | Rs 998,032 |
| B-HNI (Min) | 68 | 3,332 | Rs 1,012,928 |
Promoters of the Company
Mr. Khubilal Jugraj Rathod, Mr. Vimalchand Jugraj Rathod, Mr. Rajesh Khubilal Rathod, Mr. Mohit Khubilal Rathod and Mr. Sumit Rathod are the promoters of the company.
Flair Writing Industries Limited IPO Promoter Holding
| Shareholding Pre Issue | 97.49% |
| Shareholding Post Issue | 79.21% |
Flair Writing Industries Limited IPO Lead Manager(s)
The lead managers of the IPO are Nuvama Wealth Management Limited and Axis Capital Limited.
How to Apply for Flair Writing Industries Limited IPO?
Wait for the public issue to open for subscription, then click on this link to apply for the Flair Writing Industries Limited IPO with Bigul: https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Flair Writing Industries Limited IPO?
The registrar for Flair Writing Industries Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link: https://linkintime.co.in/
FAQs
- What is the Flair Writing Industries Limited IPO?
The Flair Writing Industries Limited IPO is a forthcoming public offering comprising a fresh issuance worth Rs 292.00 crore and an offer for the sale of about 9,901,315 shares.
- Who are the main coordinators for this IPO?
The lead managers for the IPO are Nuvama Wealth Management Limited and Axis Capital Limited.
- How can I apply for the Flair Writing Industries Limited IPO?
Once the public issue opens for subscription, you can apply for the Flair Writing Industries Limited IPO through the given link: https://ipo.bonanzaonline.com/.
- How do I check my allotment status for the Flair Writing Industries Limited IPO?
The registrar for Flair Writing Industries Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link: https://linkintime.co.in/
- Who are the promoters of Flair Writing Industries Limited?
The company is promoted by Mr. Khubilal Jugraj Rathod, Mr. Vimalchand Jugraj Rathod, Mr. Rajesh Khubilal Rathod, Mr. Mohit Khubilal Rathod and Mr. Sumit Rathod.
- What is the financial performance of Flair Writing Industries Limited?
Financial highlights include growth in total assets, total revenue, profit after tax, net worth, reserves and surplus, and total borrowings from 2021 to 2023, as provided in the provided data. Flair Writing Industries’ revenue rose by 62.39%, and PAT grew by 114.14% between the financial year ending with March 31, 2023 and March 31, 2022.
- What will be the use of the net proceeds from the IPO?
The utilization plan for the net proceeds from the Fresh Issue, calculated as the gross proceeds of the Fresh Issue minus the Company’s share of Offer-related expenses, is outlined as follows:
- Establishment of a New Manufacturing Facility
- Capital Expenditure Funding
- Working Capital Support
- Borrowings Repayment
- General Corporate Purposes
- What is the expected listing date for the Flair Writing Industries Limited IPO?
The exact listing date is December 5, 2023.
- What is the issue type of the IPO?
It’s a Book-Built Issue IPO.
- How many shares are being offered for sale?
The offer for sale consists of 9,901,315 shares of Rs 5 each.