Ahmedabad, Nov 21: Flair Writing IPO price band has been fixed at ₹288 to ₹304 per share. The company plans to raise ₹593.00 crore from the maiden public offer that comprises a fresh issue of 96.52 lakh equity shares aggregating to ₹292.00 crore and an offer for sale (OFS) of 99.01 lakh shares aggregating to ₹301.00 crore.
Flair Writing commands a strong position as one of the top three players in India’s writing instruments industry, boasting consistent revenue growth, a diversified product range, and a significant international footprint.
Flair Writing Industries IPO opens on 22-Nov-2023 and closes for subscription on 24-Nov-2023. The stock has a face value of ₹5 per share and the price band for the book building IPO has been set in the range of ₹288 to ₹304 per share. The final price will be discovered within this band through. The IPO will be a combination of a fresh issue and an offer for sale (OFS). The fresh issue portion of Flair Writing Industries IPO comprises the issue of 96,05,263 shares (96.05 lakh shares approximately), which at the upper price band of ₹304 per share will translate into fresh issue size of ₹292 crore. The offer for sale (OFS) portion of the Flair Writing Industries IPO comprises the sale of 99,01,316 shares (99.01 lakh shares), which at the upper price band of ₹304 per share will translate into an offer for sale (OFS) size of ₹301 crore.
The OFS selling will be by the promoter shareholders of the company, with 5 members of the promoter group offering the total of 99.01 lakh shares in total. Flair Writing Industries Ltd is currently 100% owned by the promoters of the company, and post IPO this stake will get diluted to 81.06%. Therefore, the overall IPO of Flair Writing Industries Ltd will comprise the issue and sale of 1,95,06,579 shares (195.07 crore shares approximately), which at the upper price band of ₹304 per share will translate into total IPO issue size of ₹593 crore.
The fresh funds raised in the IPO will be used for setting up a new manufacturing facility in Valsad, funding capex of its subsidiary FWEPL, repayment and prepayment of loans and for working capital needs. The IPO will be lead managed by Nuvama Wealth Management and Axis Capital. Link Intime India Private Ltd will be the registrar to the issue.
The promoters of the company are Khubilal Jugraj Rathod, Vimalchand Jugraj Rathod, Rajesh Khubilal Rathod, Mohit Khubilal Rathod and Sumit Rathod.
Flair IPO is used to raise capital for a company by offering shares to the public for the first time. This allows the company to expand, invest in new projects, or pay off debts. It also provides an opportunity for investors to own a stake in the company and potentially benefit from its growth and success. The company intends to utilise the net proceeds from the issue towards the funding of the following: Setting up a new manufacturing facility for writing instruments in Gujarat’s Valsad district, funding capital expenditure of the company and its subsidiary, FWEPL.
Flair Writing Industries Limited provides writing instruments. The Company offers various types of pens, markers, hi-lighters, and pencils. Evolving constantly company has a dedicated R& D unit comprising of 18 professionals and introduces inventive styles of writing tools. While other manufacturers have been using some 20 tips Flair has invented and created over 70 different types of indigenously made tips which is still going to increase after the IPO fresh investment to be made by the company in the next two years.
On the occasion of its IPO announcement the Flair Writing Industries Limited top management was in Ahmedabad on Tuesday. It included Vimalchand Rathod the managing director, Mohit Rathod, whole time director, Pravin Rathod, Advisor, Nilesh Basu Roy, Asst Vice President, Investment Banking Nuvama Wealth Management ltd.
Established 50 years back, Flair specialises in crafting writing instruments tailored to the ever-evolving market. With ISO 9001:2015 and ISO 14001:2015 certifications, the company aligns with global business and social standards. It has forged partnerships with key players in the writing industry and owns brands like Flair, Hauser, Pierre Cardin, Flair Creative, Flair Houseware and Zoox.
Flair boasting consistent revenue growth, a diversified product range, and a significant international footprint. It is among the top three players, with a market share of around 9 per cent in India’s writing and creative instruments industry and a 7.1 per cent share in exports.
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