Flair Writing is coming up with an IPO. The offer consists of a fresh issue of Rs.292 crores and an offer to sell 99.01 lakh existing equity shares for INR 301 crores. The company plans to establish a writing instrument facility in Valsad, Gujarat, and secure capital for expenditures, working capital, debt repayment, and general corporate purposes for subsidiaries.
Flair Writing Industries Limited IPO – Important Details
| Flair Writing IPO Date | November 22, 2023 to November 24, 2023 |
| Flair Writing IPO Listing Date | December 5, 2023 |
| Flair Writing IPO Price | INR 288-304 per share |
| Flair Writing IPO Lot Size | 49 shares |
| Flair Writing IPO Total Issue Size | Approx INR 593 crores |
| Flair Writing IPO Basis of Allotment | November 30, 2023 |
| Flair Writing IPO Initiation of Refunds | December 1, 2023 |
| Flair Writing IPO Credit of Shares to Demat | December 4, 2023 |
| Flair Writing IPO Issue Type | Book Built Issue IPO |
| Flair Writing IPO Listing At | BSE, NSE |
Flair Writing Industries Limited IPO – Company Profile
Incorporated in 1976, Flair is developing and manufacturing writing instruments tailored to today’s continuously shifting market.
Flair Writing Industries is among the top three players in the overall writing instruments industry with revenue of ₹9,155.5 million in Financial Year 2023 and occupies a market share of approximately 9% in India’s general writing and creative instruments industry as of March 31, 2023.
Flair Writing Industries’ flagship brand, “Flair,” has enjoyed a market presence for over 45 years. They have an extensive range of products across various price points and cater to a broad range of consumers, including students, professionals, and offices. They manufacture and distribute writing instruments, including pens, stationery products, and calculators. Leveraging their manufacturing capabilities and existing customer base in the writing and creative instruments business, they have also diversified into manufacturing houseware products and steel bottles.
Flair Writing Industries Ltd IPO – Fundamental Analysis
Flair Writing Industries Ltd exhibits strong growth potential, with impressive revenue growth, enhanced profitability, improved efficiency, and reduced debt reliance, indicating a promising investment opportunity.
Revenue Growth:
The company has demonstrated robust revenue growth, consistently increasing from ₹2,979.88 million in 2021 to ₹9,426.60 million in 2023, indicating a substantial expansion in its business operations.
Profitability:
Flair Writing Industries has shown a significant improvement in profitability. The Profit and Loss After Tax increased notably from ₹9.89 million in 2021 to ₹1,181.00 million in 2023. This demonstrates an impressive upward trend in the company’s earnings.
Return on Net Worth (RoNW):
The Return on Net Worth has shown a substantial increase, reflecting an upward trajectory in the company’s efficiency in utilizing shareholder funds, growing from 0.37% in 2021 to 31.17% in 2023.
Earnings Per Share (EPS):
The Diluted EPS has exhibited remarkable growth, escalating from ₹0.11 in 2021 to ₹12.66 in 2023, signifying increased profitability on a per-share basis.
Financial Position:
The Net Asset Value (NAV) per Equity Share has consistently risen from ₹28.34 in 2021 to ₹46.90 in 2023, demonstrating an increase in the company’s value per share.
Debt Management:
The Debt-to-Equity ratio has seen a decline over the years, indicating an efficient reduction in the company’s reliance on debt to finance its operations.
Liquidity and Efficiency:
The Current Ratio and Inventory Turnover Ratio both exhibit positive trends, although there is a slight decrease in the Current Ratio. However, the Inventory Turnover Ratio has steadily increased, indicating efficient inventory management.
Flair Writing Industries Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in millions) | 2,979.88 | 5,773.98 | 9,426.60 |
| Equity (₹ in millions) | 2,616.02 | 3,169.79 | 4,352.29 |
| Expenses (₹ in millions) | 3,087.36 | 5,141.93 | 7,954.93 |
| Profit and Loss After Tax (₹ in millions) | 9.89 | 551.51 | 1,181.00 |
| RoNW (%) | 0.37% | 18.87% | 31.17% |
| Diluted EPS only (₹) | 0.11 | 5.91 | 12.66 |
| NAV per Equity Share (₹) | 28.34 | 34.25 | 46.90 |
| Total Assets (in millions) | 4,806.64 | 5,574.93 | 6,841.83 |
| Total Liabilities (in millions) | 2,190.62 | 2,405.14 | 2,489.54 |
| Debt-to-Equity Ratio | 0.49 times | 0.39 times | 0.26 times |
| Current Ratio | 3.41 | 2.37 | 2.23 |
| Inventory Turnover Ratio | 1.77 times | 2.80 times | 3.49 times |
Flair Writing Industries Limited IPO Peer Comparison
Flair Writing Industries Ltd’s IPO stands out with strong revenue of ₹9,426.60 million, EPS of ₹12.66, and RoNW at 31.17%. Compared to peers, it competes well in revenue with Cello World but lags in valuation metrics, displaying potential for growth and profitability.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Flair Writing Industries Limited | 9,426.60 | 5 | NA | 12.66 | 12.66 | 31.17% | 46.90 |
| Linc Limited | 4,867.60 | 10 | 33.50 | 25.15 | 25.15 | 23.37% | 119.17 |
| Kokuyo Camlin Limited | 7,749.43 | 1 | 56.82 | 2.44 | 2.44 | 9.74% | 26.18 |
| Cello World Limited | 17,966.95 | 5 | NA | 13.65 | 13.17 | 23.17% | 56.84 |
Flair Writing Industries Limited IPO Objective
Flair Writing Industries aims for a top position in the Indian writing instruments industry. They allocate funds for a new unit, capital expenditure, working capital, debt repayment, and general corporate purposes.
1. Setting up the New Valsad Unit: Flair Writing Industries Limited aims to continue to be among India’s top three players in the overall writing instruments industry. The total estimated cost for setting up the New Valsad Unit comprises acquiring the land that the Company has incurred from their internal accruals. The Company will incur construction costs and purchase molds, machinery, etc, from the amount received from the IPO. The Company proposes to utilize INR 55.99 crores for the said purpose.
2. Funding capital expenditure of the Company and its Subsidiary, FWEPL: The Company strategically positions manufacturing facilities across diverse regions in India to leverage benefits such as quality labor, power availability, and government incentives. They utilize advanced machinery, including imported high-precision equipment, aiming for continuous technological integration and efficiency enhancement. For the said purpose, the company plans to utilise INR 86.74 crores.
3. Funding working capital requirements of the Company: The Company plans to utilize INR 77 crores towards meeting its capital requirements. The Company requires additional funds to commensurate the growth in the business.
4. Repayment/pre-payment, in part or full, of certain borrowings availed by the company and its Subsidiaries: The Company and its Subsidiaries use financing for expansion and operational needs. INR 43 crores from Net Proceeds will repay existing borrowings, subject to repayment schedules and business cycles.
Flair Writing Industries Ltd IPO Risks And Challenges
Flair Writings need help with potential raw material cost fluctuations and dependence on a limited supplier base. The reliance on brand reputation, especially “Flair,” “Hauser,” and “Pierre Cardin,” is crucial. Given operational risks and past disruptions, efficient manufacturing plant management is essential, requiring prompt and cost-effective responses.
- Potential raw material cost increases or shortages may adversely impact their business, operations, and financial results. Lack of long-term contracts and dependence on a limited number of suppliers pose challenges in passing on such costs to customers.
- Flair Writings derive a significant portion of its revenue from the sale of its products under the “Flair,” “Hauser,” and “Pierre Cardin” brands, and any harm to such brands or reputation may adversely affect its business, financial condition, cash flows, and results of operations.
- Flair Writings business relies on efficient management of manufacturing plants, facing risks like workforce productivity, regulatory compliance, equipment breakdowns, accidents, and natural disasters. Past incidents, like a significant fire, resulted in prolonged disruptions. Machinery malfunctions may lead to substantial costs and operational delays, potentially impacting customer obligations. The ability to respond promptly and affordably is crucial to maintaining supply commitments.
Flair Writing Industries Ltd IPO – Industry & Market Potential
The Indian pen segment is expected to achieve a 7.5-8.5% CAGR from FY2023 to FY2028, recovering from pandemic-related challenges. Growth factors include increased disposable income favoring premium pens, rising literacy rates, government education initiatives, and a growing young population. The shift towards pens over pencils and the diminished threat of digital education contribute to industry growth.
Pencils were fundamental until Class V in India, with wooden pencils dominating despite innovations. Manufacturers provide various products based on graphite grading scales and user applications, reflecting the enduring popularity of traditional writing tools.
Markers and highlighters come in different colors and have specific uses. Permanent features, typically used over glass or metal surfaces, retain writings for a long time. On the other hand, whiteboard markers use erasable ink and are used for temporary reports on specific characters. Highlighters, as the name suggests, are used to highlight existing write-ups. These products find applications in academic sessions as well as in corporate processes.
Flair Writing IPO – Type of Offer
Flair Writing plans to raise INR 292 crores through a fresh share issue to fuel business expansion. Additionally, existing shareholders intend to sell a stake worth INR 301 crores as part of an offer for sale.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 292 crores. The company intends to utilize the proceeds from the fresh issue to expand its capital requirements for the increasing business requirements.
- Offer for sale: Existing shareholders will sell a portion of their stake in the company for INR 301 crores.
Flair Writing IPO Offer Size
Flair Writing Industries plans to launch an IPO comprising a new share issue valued at INR 292 crores and an offer for sale totaling INR 301 crores. The funds will bolster future capital needs and allocate funds for a new unit, capital expenditure, working capital, debt repayment, and general corporate purposes.
Flair Writing IPO Allotment Structure
Flair Writing’s IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations. Also a portion of the issue is reserved for eligible employees.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Flair Writing IPO?
To apply for the Flair Writing Limited IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Flair Writing Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Flair Writing Limited IPO’s at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Flair Writing Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Flair Writing Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Flair Writing Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Flair Writing Limited IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Flair Writing Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the National Stock Exchange’s (NSE) and Bombay Stock Exchange’s (BSE) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Flair Writing Industries IPO Offer Registrar
The registrar for the Flair Writing Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810 811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Flair Writing IPO FAQs
1. What is the allotment date of the Flair Writing Limited IPO?
The allotment date will be finalized on November 30, 2023, and the allotted shares will be credited to the customer’s demat account by December 4, 2023.
2. What is the price band of the Flair Writing Limited IPO?
The price band of the shares issue is INR 288-304 per share.
3. What is the size of the Flair Writing Limited IPO?
Flair Writing plans to launch an IPO comprising a new share issuance valued at INR 292 crores and an offer for sale totaling INR 301 crores. The funds will enhance future capital needs and allocate funds for a new unit, capital expenditure, working capital, debt repayment, and general corporate purposes.
4. What is the listing date of the Flair Writing Limited IPO?
The listing date is December 5, 2023.
