Mumbai-based stationery maker Flair Writing Industries has announced the opening of its initial public offering (IPO) for subscription from November 22 to November 24. The company has set a price band of ₹288-304 for the issue and is looking to raise up to ₹593 crore through the IPO. Investors can bid for a minimum of 49 equity shares and in multiples thereof.
Flair Writing Industries is known for its Flair brand of pens and has also acquired rights to international brands such as Hauser and Pierre Cardin’s writing instruments. In addition to expanding its manufacturing capacities, the company is also venturing into new product categories, including houseware and other school and office supplies.
The net proceeds from the IPO will be used to set up a new manufacturing facility for writing instruments in Valsad, Gujarat, as well as to fund capex, working capital requirements, loan payments, and more. The company is also aiming to increase its exports and has received positive feedback from international OEMs for making products such as vacuum bottles.
Financially, the company’s revenues have grown at a compounded annual growth rate (CAGR) of 22.85% from FY21 to FY23, with its net profit nearly doubling in FY23 compared to the previous year. Flair Writing Industries has a market share of 7.1% in the export of writing and creative instruments industry and is looking to benefit from the China +1 strategy adopted by many international companies.
The company has cited plant shutdowns, labor unrest, regulatory issues, and increased competition as potential risk factors in its IPO prospectus. It also acknowledges the presence of unorganized players in the writing instrument space and the impact they could have on its business.
The IPO comprises a fresh issue of ₹292 crore and an offer for sale of ₹301 crore. Upon listing, Flair Writing Industries will join the ranks of its peers in the market, including Cello World, Linc, and Kokuyo Camlin. With strong financials and a clear growth strategy, the company is poised for significant expansion in the coming years.
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