Flair Writing Industries Limited Files DRHP With SEBI to Launch Its IPO Worth ₹745 Crores

Flair Writing, with an established brand in the name of Flair Pens, has filed its IPO papers with SEBI seeking approval on the ₹745 crore IPO. Here are the major details

Flair Writing is a leading name in the stationery industry. Its flagship brand Flair has been in the market for more than 45 years and has carved a niche for itself in the industry. The company has recently filed its IPO papers with the securities market regulator SEBI (Securities and Exchange Board of India). The company is eyeing to raise a capital of ₹745 crores the IPO if SEBI gives its approval. The Draft Red Herring Prospectus (DRHP) was filed on 14th July 2023. The IPO would include both a fresh issue of stocks and an Offer for Sale. 

• Flair Writing has filed its DRHP with SEBI to seek a nod for ₹745 crore IPO
• The company is a leading name in the pen making industry owning the flagship brand Flair
• The IPO includes both a fresh issue of equity shares and an Offer For Sale wherein the promoters would be diluting their ownership
• The company enjoys around 9% market share and is ranked third in the writing instruments industry

About Flair Writing

Flair Writing Industries Limited is engaged in the manufacture and distribution of pens. It ranks in the top three writing instrument manufacturers in India and enjoys a market share of around 9% as of 31st March 2023.

Besides pens, Flair Writing Industries Limited also manufactures other products like calculators, stationery items, steel bottles, and houseware items. Previous to this filing, the company had filed its IPO papers also in September 2018. At that time, the IPO size was ₹450 crores.

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All you need to know about Flair Writing Industries IPO

Here are some of the primary details of the proposed IPO –

• The IPO will include a fresh issue of equity shares to the tune of ₹365 crores.
• The remaining part of the IPO would be an Offer for Sale (OFS) wherein the existing promoters of the company would dilute their earnings. The OFS is valued at ₹380 crores.
• The promoters hold 100% stake in the company before the IPO a part of which would be offered through the OFS. The promoters include the following –

1. Vimalchand Jugraj Rathod
2. Khubilal Jugraj Rathod
3. Manjula Vimalchand Rathod
4. Nirmala Khubilal Rathod
5. Mohit Khubilal Rathod
6. Rajesh Khubilal Rathod
7. Sangita Rajesh Rathod
8. Sumit Rathod
9. Shalini Mohit Rathod
10. Sonal Sumit Rathod

• The IPO proceeds would be used for setting up a pen manufacturing unit at Valsad, Gujarat, and meeting its capital expenditure. Apart of the funds would be used to meet the working capital needs of its subsidiaries Flair Cyrosil Industries and FWEPL. The remaining funds would be used for loan repayment and general corporate purposes.
• Axis Capital Limited and Nuvama Wealth Management Limited are the lead managers.

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The Bottom Line

Other details of the IPO would be published once the regulator gives its nod. Till then, you can check out the financial performance of the company over the last few years and assess its performance.

Also Read: Do you know how the IPO price is decided?

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