The Mumbai-based writing instruments manufacturing company Flair Writing Industries released its IPO for subscription on November 22 with a price band of Rs 288 to 304 per share. The closing date will be November 24, with a face value of Rs 5.
This company is among the top three players in the writing instruments industry in India, occupying a market share of approximately 9% in India’s overall writing and creative instruments segment as of FY23.
Flair Writing 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. Flair Writing IPO size is ₹593 crore.
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.
Flair IPO lot size is 49 equity shares and in multiples of 49 equity shares thereafter.
The company proposes to utilize the net proceeds of the fresh issue towards setting up a new manufacturing facility for writing instruments in the Valsad district, funding capital expenditure, working capital requirements, and other general corporate purposes.
In regards to the company’s performance, it has clocked revenue of Rs 246.6 crore in the June quarter and net profit was at Rs 32.1 crore.
The IPO of Flair Writing Industries has received a strong response from investors as the public issue has been fully subscribed on the first day itself.
Flair Writing IPO GMP today, or grey market premium today, is ₹60 per share, as per market observers. This indicates that the equity shares of Flair Writing are trading higher by ₹60 or 19.74% in the grey market than their issue price of ₹304 apiece.
Considering the GMP today of ₹60 and the issue price of ₹304, the estimated listing price of Flair Writing shares would be ₹364 apiece (₹304 + ₹60).
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