Flair Writing Shares End At 48% Premium Over IPO Price

Shares of Flair Writing Industries Ltd. were locked in the lower circuit of 10% on the NSE on Friday as it closed at Rs 450.90 apiece, a premium of 48% over the IPO price.

Earlier in the day, the shares opened at Rs 501 apiece, a premium of 64.80% over the initial public offering price of Rs 304 apiece.

On the BSE, the stock debuted at Rs 503, a 65.46% premium.

Flair Writing Industries was subscribed 46.68 times on the last day of its IPO. The bids were led by institutional investors (115.60 times), non-institutional investors (33.37 times), and retail investors (13.01 times).

The IPO of Flair Writing is a combination of a fresh issue and an offer for sale. The fresh issue comprises approximately 96.1 lakh shares in the upper price band of Rs 304 for Rs 292 crore. The OFS portion of the IPO comprises the sale of 99 lakh shares at the upper price band of Rs 304 for Rs 301 crore.

Flair Writing Industries has raised Rs 178 crore from anchor investors ahead of its initial public offering.

The penmaker allotted 58,51,972 shares at Rs 304 apiece to 23 anchor investors, including HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, and Tata Mutual Fund, among others.

Flair Writing is one of the top three players in the writing and creative instrument industry, with a market share of 9% overall, according to CRISIL. The penmaker reported revenue of Rs. 915.6 crore in the financial year 2023.

Flair Writing also has the fastest growth in revenue compared to others, with a CAGR of approximately 14% in 2017–2023, in contrast to the 5.5% CAGR witnessed in the overall industry.

During the three-month period ended June 30, 2023, Flair Writing sold 34.43 crore units of pens, of which 27.92 crore units or 81.09%, were sold domestically and 6.51 crore units or 18.91%, were exported. In FY2023, we sold 130.4 crore units of pens, of which 97.53 crore units or 74.82%, were sold domestically and 32.83 crore units or 25.18%, were exported.

The flagship Flair brand was launched in 1976 with the involvement of certain of our promoters, with a focus on innovative designs and quality writing instruments. Since its launch, the penmaker has managed to become a key brand in the industry and aims to build on this reputation by introducing a new range of products.