Flair Writing IPO (Flair Writing Industries Limited IPO)
Flair Writing Industries Limited
Flair Writing IPO Details
IPO Open
22 November 2023
IPO Close
24 November 2023
Price Band
₹288 – ₹304
Issue Size
₹593 Cr
Market Cap
₹3204 Cr
Min. Lot Size
49
Face value
₹5
GMP
₹67
IPO Timeline
IPO Open
22 November 2023
IPO Close
24 November 2023
Allotment finalisation
29 November 2023
Refund initiation
29 November 2023
Demat transfer
29 November 2023
Listing
30 November 2023
About Flair Writing Industries Limited
Flair Writing Industries Limited is a leading manufacturer of writing instruments in India. The company was founded in 1976 by Mr. Khubilal Jugraj Rathod and Mr. Vimal Jugraj Rathod and has a strong presence in both the domestic and international markets.
Flair is known for its high-quality, affordable writing and drawing instruments, which are used by students, professionals, and artists alike. The company’s flagship brand, “Flair,” is a household name in India and is synonymous with quality and reliability.
Flair Writing Industries Limited is committed to innovation and product development. The company has a state-of-the-art manufacturing facility and a team of experienced engineers who are constantly developing new products to meet the needs of its customers. Flair is also a responsible corporate citizen and is committed to environmental sustainability.
Flair Writing Industries Limited owns several brands, including:
- Flair: The company’s flagship brand, known for its high-quality, affordable pens.
- Hauser: A brand of premium writing instruments.
- Pierre Cardin: A brand of writing instruments licensed from the French fashion designer.
- ZOOX: A brand of premium and mid-premium writing instruments.
- Flair Creative: A range of art supplies, including markers, crayons, and color pencils.
- Flair Calculator: A line of calculators for students and professionals.
- Flair Platinum: A premium range of writing instruments.
- Flair Gift Sets: A collection of writing instruments and art supplies packaged as gifts.
Flair Writing Industries Limited also manufactures and sells writing instruments under private labels for other companies.
Here are some of the company’s prominent products:
- Flair pens
- Ball pens
- Gel pens
- Fountain pens
- Markers
- Erasers
- Rulers
Flair Writing Industries Limited is a well-respected company in the Indian writing instrument industry. The company is committed to providing its customers with high-quality, affordable products and is constantly innovating to meet the changing needs of the market. By the way did you use any flair products. Do comment.
About Flair Writing IPO
Flair Writing Industries Limited is gearing up for its Initial Public Offering (IPO) on 22 November 2023. The company looks forward to raise ₹593 crore through this IPO, which is a combination of a fresh issue of shares worth ₹292 crore and an offer for sale (OFS) of ₹301 crore by existing shareholders.
Flair Writing IPO price band has been set at ₹288 to ₹304 per share, with a minimum order quantity of 49 shares. The Flair Writing IPO will open on November 22, 2023, and close on November 24, 2023. The allotment for the IPO is expected to be finalized on Thursday, November 30, 2023. Flair Writing IPO is expected to list on BSE and NSE with a tentative listing date fixed as 5 December 2023.
Industry Overview
The writing instruments industry is a global market that encompasses the production and sale of pens, pencils, markers, erasers, and other writing tools.
The industry is characterized by a large number of players, ranging from small local businesses to large multinational corporations. The industry is also highly competitive, with companies constantly innovating and developing new products to stay ahead of the curve.
The global writing instruments market is expected to grow at a CAGR of 3.5% from 2023 to 2028, reaching a value of USD 25.8 billion by 2028. This growth is being driven by several factors, including increasing literacy rates in emerging markets, rising demand for premium writing instruments, and expanding e-commerce penetration.
Consumers are increasingly demanding personalized writing instruments, such as pens with their names engraved on them. This trend is being driven by a desire for self-expression and a growing appreciation for unique and personalized products.
Flair Writing Industries Limited is a leading player in the Indian writing instruments industry. The company competes with a number of other domestic and international brands, including:
- Linc Pen & Plastics Ltd.
- Reynolds Pen Company
- Pencils Ltd.
- Pilot Corporation
- BIC
Flair Writing Industries Limited differentiates itself from its competitors through its strong brand, wide product portfolio, and established distribution network. The company also has a strong commitment to innovation and product development.
Flair Writing IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Flair Writing IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 49 | ₹14,896 |
| Retail (Max) | 13 | 637 | ₹193,648 |
| S-HNI (Min) | 14 | 686 | ₹208,544 |
| S-HNI (Max) | 67 | 3,283 | ₹998,032 |
| B-HNI (Min) | 68 | 3,332 | ₹1,012,928 |
Financials of Flair Writing Industries Limited
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 684.18 | 557.49 | 480.66 |
| Revenue | 954.29 | 587.64 | 310.87 |
| Profit After Tax | 118.10 | 55.15 | 0.99 |
| Net Worth | 437.99 | 319.86 | 264.65 |
| Reserves and Surplus | 391.29 | 296.50 | 241.31 |
| Total Borrowing | 115.59 | 126.33 | 130.31 |
Assets: The company’s assets have grown by 22.73% from Mar 2022 to Mar 2023. This is a positive sign, as it indicates that the company is growing and expanding its operations.
Revenue: The company’s revenue has grown by 62.22% from Mar 2022 to Mar 2023. This is a very strong growth rate, and it suggests that the company is doing a good job of increasing its sales.
Profit After Tax: The company’s profit after tax has grown by 114.15% from Mar 2022 to Mar 2023. This is an impressive growth rate, and it shows that the company is profitable and well-managed.
Net Worth: The company’s net worth has grown by 37.20% from Mar 2022 to Mar 2023. This is a positive sign, as it indicates that the company is financially healthy and has a strong balance sheet.
Reserves and Surplus: The company’s reserves and surplus have grown by 32.01% from Mar 2022 to Mar 2023. This is a positive sign, as it indicates that the company is able to retain its earnings and reinvest them in the business.
Total Borrowing: The company’s total borrowing has decreased by 8.49% from Mar 2022 to Mar 2023. This is a positive sign, as it indicates that the company is reducing its debt and improving its financial position.
Objective of the IPO
Establishment of a New Manufacturing Facility: Flair Writing Industries Limited plans to establish a new manufacturing facility for writing instruments in District Valsad, Gujarat. This expansion will increase the company’s production capacity by approximately 25%, enabling it to meet the growing demand for its products both domestically and internationally.
Funding Capital Expenditure: The company intends to allocate a portion of the IPO proceeds to finance capital expenditures for both itself and its subsidiary, Flair Writing Exports Private Limited (FWEPL). This includes investments in new equipment, machinery, and technology, which will enhance the company’s efficiency, productivity, and overall competitiveness.
Addressing Working Capital Requirements: Working capital is essential for any business to meet its day-to-day operational expenses, such as inventory purchases, payroll, and other overhead costs. The IPO proceeds will help Flair Writing Industries Limited and its subsidiaries (FWEPL) and Flair Creative Industries Private Limited (FCIPL), maintain adequate working capital levels to ensure smooth business operations and support future growth.
Debt Reduction and Financial Optimization: A portion of the IPO proceeds will be used to repay or prepay certain borrowings availed by the company and its subsidiaries. This debt reduction strategy will improve the company’s financial position, reduce interest expenses, and strengthen its balance sheet.
General Corporate Purposes: The IPO proceeds will also provide Flair Writing Industries Limited with the flexibility to address unforeseen expenses or pursue strategic opportunities that may arise in the future. This could include investments in research and development, brand marketing initiatives, or potential acquisitions.
Promotor Share Holding Pattern
Pre IPO
Post IPO
Legal Issues
Based on the provided information in RHP , there are no outstanding legal proceedings that have a material impact on Flair Writing Industries Limited. The company has a clean legal record and has not been involved in any major disputes or scandals.
The company has adopted a materiality policy that defines the criteria for what constitutes a material legal proceeding. The policy states that all outstanding legal proceedings, including any legal proceedings involving the Relevant Parties (other than criminal proceedings, actions taken by statutory or regulatory authorities, and direct or indirect tax claims) shall be disclosed.
The company has received pre-litigation notices from third parties, but these notices have not been evaluated for materiality until the company is impleaded as a defendant or respondent in proceedings before any judicial or arbitral forum.
In addition to the above, the company also states that there are no disciplinary actions including penalty imposed by the SEBI or stock exchanges against our Promoters in the last five Financial Years including any outstanding action.
FAQ about Flair Writing IPO
The IPO opens on November 22, 2023, and closes on November 24, 2023.
The Flair Writing IPO shares price band is set at ₹288 to ₹304 per share.
The minimum lot size is 49 shares for Flair Writing IPO.
The issue size is ₹593 crore, comprising a fresh issue of ₹292 crore and an offer for sale (OFS) of ₹301 crore by existing shareholders.
The allotment is expected to be finalized on November 30, 2023.
Refund initiation is scheduled for December 1, 2023.
Demat transfer is expected to take place on December 4, 2023.
The tentative listing date for Flair Writing IPO is 30 November 2023.
The market cap post IPO is ₹3204 crore.
Other brands include Hauser, Pierre Cardin, ZOOX, Flair Creative, Flair Calculator, Flair Platinum, and Flair Gift Sets.
Flair Writing differentiates itself through a strong brand, a wide product portfolio, and an established distribution network. The company also emphasizes innovation and product development.
The global writing instruments market is expected to grow at a CAGR of 3.5% from 2023 to 2028, reaching a value of USD 25.8 billion by 2028.
Key financial indicators include revenue growth of 62.22%, profit after tax growth of 114.15%, and a decrease in total borrowing by 8.49% from March 2022 to March 2023.
The objectives include establishing a new manufacturing facility, funding capital expenditure, addressing working capital requirements, debt reduction, and general corporate purposes.
The new facility is expected to increase the company’s production capacity by approximately 25%.
Prominent products include Flair pens, ball pens, gel pens, fountain pens, markers, erasers, rulers, and various other writing instruments.
