Mumbai-Based Flair Writing Industries Opens IPO For Investors, with Bid Opening Date Set for November 22nd & Closing On November 24th
Mumbai-based stationery maker Flair Writing Industries Ltd is set to launch its initial public offer (IPO) for subscription on November 22. The company has set a price band of ₹288-304 for the public issue, with the aim of raising up to ₹593 crore through the issue. The minimum bid for investors is set at 49 equity shares, with multiples available for purchase.
As a company that manufactures and distributes the Flair brand of pens, it also holds rights to international pen brands like Hauser and Pierre Cardin. Flair Writing’s products are currently available in the hands of 3.15 lakh wholesalers and retailers. Alongside its expansion plans, the company is looking to embrace new manufacturing capacities and explore other ventures into houseware and various school and office supplies.
With a forward-looking strategy in mind, Flair Writing Industries also seeks to expand its exports. The company currently holds a 7.1% market share in the export of writing and creative instruments industry in FY23. Furthermore, Flair Writing aims to tap into the China +1 strategy, expecting to benefit from the manufacturing shift among international companies.
In terms of its financials, the company has seen substantial growth in revenue at a compounded annual growth rate (CAGR) of 22.85% from FY21 to FY23. Its net profit almost doubled between FY22 and FY23. A report by Kunvarji Wealth Solutions has given a ‘subscribe’ rating to the Flair Writing IPO, highlighting its exceptional performance.
Flair Writing’s IPO consists of a fresh issue valued at ₹292 crore, along with an offer for sale of ₹301 crore. The net proceeds from the fresh issue will be dedicated to setting up a new manufacturing facility in Valsad, Gujarat, and will also fund capex, working capital requirements, loan payment, and additional investments.
However, the company recognizes several risk factors, including potential plant shutdowns, expansion difficulties, labor unrest, and regulatory challenges. Increased competition is also a concern, as the writing instrument space is dominated by organized players with 78-80% of the market share in FY22. The company acknowledges that the inability to address competitive pressures may have an adverse effect on its business, operations, and financial performance.
Overall, Flair Writing Industries’ IPO presents a promising opportunity for investors, as the company positions itself for growth and expansion in the stationery and writing instrument industry.
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