- The company allocates 58.52 lakh equity shares to 23 funds at ₹304 apiece, which is also the upper end of the price band
- The stationery products manufacturing company intends to raise ₹593 crore via maiden public issue
- The price band has been set in the range of ₹288 to ₹304 per equity share of face value of ₹5
- The lot size is 49 equity shares and in multiples of 49 equity shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, NOV 21
Flair Writing Industries on Tuesday announced it is set to open its initial public offering (IPO) for subscription on Wednesday, November 22, and will close on Friday, November 24. The IPO price band has been set in the range of ₹288 to ₹304 per equity share of face value of ₹5.
Ahead of its initial public offering, pen maker Flair Writing Industries Ltd, on Tuesday, said it has mopped up ₹178 crore from anchor investors.
The company has allocated 58.52 lakh equity shares to 23 funds at ₹304 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website.
Those that participated in the anchor book include – SBI Mutual Fund (MF), Aditya Birla Sun Life MF, Tata MF, ICICI Prudential Life Insurance Company, SBI Life Insurance Company, Troo Capital and Winro Commercial (India) Ltd.
At present, promoters and promoter group entities own 100 per cent stake in the company.
The IPO comprises a fresh issue of shares of up to ₹292 crore and an offer for sale (OFS) of equity shares with face value of ₹2 each by a promoter and others aggregating up to ₹301 crore by the Rathod family. Flair Writing IPO size is ₹593 crore.
The Offer for Sale comprises such number of Equity Shares aggregating up to ₹51.40 crore by . Khubilal Jugraj Rathod; up to ₹39.65 crore by Vimalchand Jugraj Rathod; up ₹32.30 crore by Rajesh Khubilal Rathod; up to ₹ 32.30 crore by Mohit Khubilal Rathod; up to ₹32.30 crore by Sumit Rathod; up to ₹32.30 crore by Nirmala Khubilal Rathod; up to ₹ 32.30 crore by Manjula Vimalchand Rathod; up to ₹ 16.15 crore Equity share by Shalini Mohit Rathod; up to ₹16.15 crore by Sangita Rajesh Rathod and up to ₹16.15 crore. Sonal Sumit Rathod.
The floor price is 57.60 times the face value of the equity shares and the cap price is 60.80 times the face value of the equity shares. The price to earnings ratio based on diluted EPS for financial year 2023 for the company at the higher end of the price band is as high as 24.01 times and the lower end of the price band is 22.75 times. Flair IPO lot size is 49 equity shares and in multiples of 49 equity shares thereafter.
Flair Writing Industries Limited IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
Flair Writing will be spending net fresh proceeds for setting up a new manufacturing facility for writing instruments in Valsad, Gujarat at a cost of ₹95.6 crore. Further, ₹86.75 crore will be used for capital expenditure, and ₹ 77 crore for working capital requirements.
Also, the debts amounting to ₹43 crore will be repaid via issue proceeds, and the remaining funds will be kept for general corporate purposes.
Flair is among the top three players in the writing instruments industry with a revenue of ₹915.55 crore in FY23 and enjoys a market share of approximately 9 percent in the overall writing and creative instruments industry in India. Its products are sold under four brands namely Flair, Hauser, Pierre Cardin, and ZOOX.
The company manufactures its pens and other products from its 11 manufacturing plants in Gujarat, Maharashtra, Daman, and Dehradun.
The shares are likely to be listed on BSE and NSE on Tuesday, December 5.
The book running lead managers are Nuvama Wealth Management Limited and Axis Capital Limited, and the issue’s registrar is Link Intime India Private Ltd.
