Mumbai-based stationery maker Flair Writing Industries Ltd has seen a surge in interest from investors during the initial public offering (IPO) of the company. The company’s IPO, which opened for subscription on November 22 and closes on November 24, has received bids for two times the available shares within the first day.
Flair Writing has set a price band of ₹288 to ₹304 per share for the IPO, with the aim of raising ₹593 crore. Investors are allowed to bid for a minimum of 49 equity shares and in multiples thereof.
The company has already secured ₹177 crore from 23 anchor investors, including SBI Consumption Opportunities Fund, HDFC Mutual Fund, and Aditya Birla Sun Life.
The IPO has been particularly popular with non-institutional investors and retail investors, while qualified institutional buyers (QIBs) have shown slightly less interest.
Flair Writing’s products, including the Flair brand of pens and international brands like Hauser and Pierre Cardin’s writing instruments, are sold through a network of 3.15 lakh wholesalers and retailers.
The IPO consists of a fresh issue worth ₹292 crore and an offer for sale of ₹301 crore. The company plans to use the net proceeds from the fresh issue to set up a new manufacturing facility for writing instruments in Valsad, Gujarat, and for other purposes such as funding capex and working capital requirements.
The company has reported strong financial performance, with revenues growing at a compound annual growth rate (CAGR) of 22.85% from FY21 to FY23. Its net profit in FY23 nearly doubled compared to the previous year.
However, the company has acknowledged various risk factors in its IPO documents, including plant shutdowns, issues with expansion plans, labor unrest, regulatory challenges, and increased competition in the market.
Despite these challenges, a report by Kunvarji Wealth Solutions has given a ‘subscribe’ rating to the IPO, citing the company’s consistent growth and strong performance in the market.
Overall, Flair Writing’s IPO has attracted significant interest from investors, signaling confidence in the company’s future growth and potential.
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