Flair Writing Industries files DRHP to raise Rs 745 crore via IPO

Flair Writing Industries has submitted the Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) with the objective of raising Rs 745 crore through an Initial Public Offer (IPO).

Flair Writing Industries, a company with a long-standing presence and a proven history of expansion, has built a solid reputation in the industry. With a market presence spanning more than four and a half decades, the company holds a significant 9% market share in the overall writing instruments industry. The company’s renowned brand, “Flair” has attained remarkable popularity as one of India’s leading writing instrument brands.

The Initial Public consists of two components. Firstly, there is a fresh issue of equity shares, totalling up to Rs 365 crore. Secondly, there is an offer-for-sale (OFS) of equity shares, amounting to a value of up to Rs 380 crore, which will be carried out by the promoters and promoter group entities.

Utilising the funds raised from the IPO, the company intends to establish a new manufacturing facility in Gujarat’s Valsad district, allocate resources for capital expenditure, and enhance its distribution network’s reach and capabilities. They have a plan to expand their business and become a leading player in the global writing instruments market.

As per the DRHP, Promoters like Khubilal Jugraj Rathod and Vimalchand Jugraj Rathod to offload shares worth Rs 76 crore and Rs 57 crore, respectively, through the OFS route. Among others, Nirmala Khubilal Rathod, Manjula Vimalchand Rathod, Rajesh Khubilal Rathod, Mohit Khubilal Rathod, Sangita Rajesh Rathod, Sonal Sumit Rathod, Shalini Mohit Rathod, and Sumit Rathod, will also sell their stakes in the company.

The writing instruments market is a growing market. The global market for writing instruments is estimated to be worth about USD 20 billion. The Indian market for writing instruments is also growing and is estimated to be worth about Rs 5,000 crore.

Following are the financial highlights of the company:

* The figures mentioned are in lakh Rupees except for percentage values.

Nuvama Wealth Management Ltd and Axis Capital Ltd have been appointed as the book-running lead managers by the company.

Looking at the financials and their popularity in the industry, the IPO of Flair Writing presents a favourable opportunity for investors to participate in a well-established company that has demonstrated consistent growth. Nonetheless, it is important for investors to exercise caution and evaluate the risks associated with the IPO before making any investment decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.