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

IPO Details

Bidding Dates

22 Nov '23 - 24 Nov '23

Minimum Investment

₹14,896 / 1 Lot ( 49 Shares)

Price Range

₹288 - ₹304

Maximum Investment

₹193,648 / 13 Lots ( 637 Shares )

Retail Discount

Not Applicable

Issue Size

₹ 593 Cr

Investor category and sub category

Qualified Institutional Buyers | Non-Institutional Investors | Retail Individual Investors |

IPO Dates

Important dates with respect to IPO allotment and listing

IPO Opening Date

Nov 22, 23

IPO Closing Date

Nov 24, 23

Basis of Allotment

Nov 30, 23

Initiation of Refunds

Dec 01, 23

Credit of Shares to Demat Account

Dec 04, 23

IPO Listing Date

Dec 05, 23

UPI Mandate Expiry Date

Nov 24, 23

Flair Writing Industries India IPO Subscription Details

Date	QIB	NII	Retail	Total
Day 1Nov 21, 2023	0.56x	2.94x	3.05x	2.31x
Day 2Nov 22, 2023	1.43x	10.61x	7.56x	6.46x
Day 3Nov 23, 2023	122.02x	35.23x	13.73x	49.27x

Flair Writing Industries India IPO Subscription Status Live

Investor Category	Subscription (Times)
Qualified Institutions Buyers	122.02
Non-Institutional Buyers	35.23
Retail Investors	13.73
Total	49.27

About Flair Writing Industries India Ltd.

Flair Writing Industries is a leading manufacturer and distributor of writing instruments. The company’s primary products include pens, such as fountain pens, ball pens, roller pens, gel pens, metal pens, other stationery products, and calculators. ‘Flair’, i.e. their flagship brand, has enjoyed a market presence for over 45 years now. They also sell products under brands such as Pierre Cardin, Hauser, and Zoox.

To leverage their manufacturing capabilities, as well as their existing customer base, they have also diversified into manufacturing a wide range of houseware products. Major products in this category include casseroles, bottles, storage containers, serving solutions, cleaning solutions, and basket and paper bins. As of March 31, 2023, they offer 699 different products across all their categories. In India, their primary marketing channels comprise super-stockists, distributors, wholesalers, direct dealers, and retailers. This diverse network of distributors helps them understand consumer preferences and respond to them better.

Between FY 2017 to FY 2023, the company’s sales grew at a CAGR of approximately 14%. The Indian writing and creative instruments industry is dominated by organised players and is expected to grow at a CAGR of 7.7% to 8.4% over the financial years 2023 to 2028. A fledgling company with businesses in a growing sector can bear good returns over the years.

Flair Writing Industries India Ltd IPO Details

Flair Writing Industries India Ltd IPO Date

The dates for bidding for the Flair Writing Industries India IPO are November 22, 2023, to November 24, 2023.

Flair Writing Industries India Ltd IPO Price Band

Flair Writing Industries India is a book-built IPO. The price range is ₹288 to ₹304 per share.

Flair Writing Industries India Ltd IPO Lot Size

The Flair Writing Industries India Ltd IPO lot size is 49 shares per lot.

Flair Writing Industries India 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, Flair Writing Equipments Private Limited (FWEPL).
Funding the working capital requirements of the main company and its subsidiaries i.e. FWEPL and Flair Cyrosil Industries Private Limited (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.
DOMS Industries Pvt Ltd.

How to check the allotment status of the Flair Writing Industries India 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 India Ltd

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

Phone: +91 22 4203 0405

E-mail:investors@flairpens.com

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 in FY2023 from the domestic pens segment only. They occupy approximately 9% market share in the overall writing and creative instruments industry in India. Among its peer group, they reported the highest operating and net income margins of 17.8% and 9.6%, respectively, in FY2022. This level of market power and profitability gives them a strong advantage in tackling competition.
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 3,15,000 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.

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.
Some of the trademarks of their products are not yet registered, which exposes their product lines to copying by rivals.