Mumbai-based stationery maker Flair Writing Industries Ltd experienced a strong response to its initial public offering (IPO) as it was subscribed two times at the end of the first day. The IPO, which has a price band of ₹288 to ₹304 per share, is open for subscription until November 24 and aims to raise ₹593 crore.
Flair Writing, known for its Flair brand of pens and ownership of international brands like Hauser and Pierre Cardin, has raised ₹177 crore from 23 anchor investors such as SBI Consumption Opportunities Fund and HDFC Mutual Fund. The IPO has attracted significant interest from both non-institutional and retail investors, with qualified institutional buyers (QIBs) slightly lagging behind.
The company plans to use the net proceeds from the IPO to establish a new manufacturing facility for writing instruments in Valsad, Gujarat, and to fund capital expenditures, working capital requirements, loan payments, and more. Flair Writing’s revenues have been growing at a compounded annual growth rate (CAGR) of 22.85% from FY21 to FY23, and its net profit nearly doubled in FY23 compared to the previous year.
However, the company has acknowledged several risk factors in its offer document, including plant shutdowns, challenges in executing expansion plans, labor unrests, and increased competition in the writing instrument space. These factors are highlighted in the company’s RHP, with CRISIL reporting that organized players hold around 78-80% of the market share in the writing instrument industry.
With the IPO open for subscription until November 24, investor interest in Flair Writing’s offering is expected to remain strong as the company continues to expand and outperform the market.
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