Flair Writing Industries IPO: Open/Close Date, Price, Lot Size, Allotment, Subscription

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

To be announced

IPO Closing Date

To be announced

Basis of Allotment

To be announced

Initiation of Refunds

To be announced

Credit of Shares to Demat Account

To be announced

IPO Listing Date

To be announced

About Flair Writing Industries

Flair Writing Industries is a market leader that primarily manufactures and distributes writing instruments. The company’s products include pens, such as ball pens, fountain pens, gel pens, roller pens, metal pens, other stationery products, and calculators. Their flagship brand “Flair” has enjoyed a market presence for over 45 years.

To leverage their manufacturing capabilities, and existing customer base, they have also started diversifying into manufacturing a wide range of houseware products. These products include casseroles, bottles, storage containers, serving solutions, cleaning solutions, and basket and paper bins.

They offer 699 different products as of March 31, 2023.

In India, their marketing channels include super-stockists, distributors, direct dealers, wholesalers, and retailers. Such a diverse network of distributors helps them better understand consumer preferences.

The company has been growing more rapidly than the industry itself. While the industry grew at a CAGR of 5.5% between FY2017 to FY2023, the company’s sales grew at a CAGR of approximately 14% during the same

period. Among its peer group, they reported the highest operating and net income margins of 17.8% and 9.6%, respectively, in FY2022. Therefore, they are showing strong signs of both revenue growth and profitability.

Flair Writing Industries Ltd IPO Details

Flair Writing Industries Ltd IPO Date

Retail investors can bid for the Flair Writing Industries IPO. The issue date has not been announced yet.

Flair Writing Industries Ltd IPO Price Band

Flair Writing Industries is an IPO comprising both fresh issue and offer for sale. It is a book-building issue. The price range has not been announced yet.

Flair Writing Industries Ltd IPO Lot Size

The Flair Writing Industries Ltd IPO’s lot size and minimum investment have not been announced yet.

Flair Writing Industries Ltd IPO Objectives

The net proceeds of the Flair Writing Industries Ltd IPO are proposed to serve the purposes listed below:

Setting up a new manufacturing facility for writing instruments in District Valsad, Gujarat.
Funding capital expenditure of the company and its subsidiary, FWEPL.
Funding the working capital requirements of the main company and its subsidiaries i.e. FWEPL and FCIPL
Repayment/pre-payment, in part or full, of certain borrowings
General corporate purposes

Peer Details

Some of the major peers of Flair Writing Industries include -

Linc Ltd.
Kokuyo Camlin Ltd.
Hindustan Pencils Pvt Ltd.
Reynolds Pens India Pvt Ltd.
Luxor Writing Instruments Ltd.

How to check the allotment status of the Flair Writing Industries Ltd IPO?

A: Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Validate with an OTP
Enter your application number, DP ID, and PAN number into the app
Click on ‘Submit’

Contact Details of Flair Writing Industries Ltd

Registered office: 63 B/C, Government Industrial Estate Charkop, Kandivali West, Mumbai 400 067, Maharashtra, India.

Phone: +91 22 4203 0405

E-mail:[email protected]

Flair Writing Industries Company Financials

Financial year	Total Income	Total Expense	Profit After Tax
Total Income	9,542.91	5,876.42	3,108.73
Profit After Tax	1,181.00	551.51	9.89
Current Ratio	2.23	2.37	3.41
Return on Capital Employed	31.24%	17.41%	0.14%
Debt to Equity Ratio	0.26	0.39	0.49

Know before investing

Strengths

They have a wide range of products across various price points catering to a broad range of consumers, including students, professionals, and offices. This level of diversification in both customers and product lines helps reduce risk and support growth in the long run.
They are the largest player in the pens segment, reporting a revenue of ₹7,541.8 million in FY2023 from the domestic pens segment only. They occupy approximately 9% market share in the overall writing and creative instruments industry in India. This level of market power gives them an advantage in negotiating better deals with distributors and maintaining their brand value.
The company has the largest distributor/dealer network as well as wholesale/retailer network, in the writing instruments segment in India. Their network comprises roughly 7,700 distributors/dealers and approximately 315,000 wholesalers/retailers, as of March 31, 2023. Since this is a retail FMCG business, having a large distributor network is a major deciding factor when competing against rivals.
They have not limited their market to India only and export their products to US, UAE, Yemen, Japan etc. They have also entered various OEM agreements with global companies for contract manufacturing. This helps them increase total income, diversify revenue sources and reduce risk.

Risks

A large part of their success is dependent on their brands ‘Flair’, ‘Pierre Cardin’, and ‘Hauser’, of which ‘Flair’ contributed 50.06% of the revenue from operations in FY2023. This level of concentration increases the risk of a sudden loss in revenue due to the failure of a single product.
Their distribution network plays a significant role in the success of their business. However, they do not have any agreements with their distributors that prevent them from trading in their rival’s products. Therefore, their hold over the crucial aspect of a distribution network is not that strong, which may affect revenues in the long run.
Their diversification into multiple new product categories at the same time may throw up new challenges, such as a reduction in operational efficiency, unforeseen liabilities, and diversion of resources.
Some of the trademarks of their products are not yet registered, which exposes their product lines to copying by rivals.