Flair Writing Industries IPO: The preliminary public providing (IPO) of pen maker Flair Writing Industries Ltd, which was opened for public subscription on Wednesday, has been subscribed absolutely subscribed until 1 pm on the primary day of bidding. So far, the 593-crore IPO has been subscribed 1.06 occasions, receiving bids for 1,53,16,910 shares as towards 1,44,13,188 shares on the provide.
The class for non-institutional traders has been subscribed 100 per cent, whereas the portion for retail particular person traders (RIIs) obtained 1.40 occasions subscription. The quota for certified institutional consumers (QIBs) was subscribed 51 per cent.
The IPO allotment will happen on November 30, whereas the share itemizing may happen on December 5.
Flair Writing Industries IPO GMP
According to market observers, unlisted shares of Flair Writing Industries have been buying and selling Rs 60 larger within the gray market as in contrast with its concern worth. The Rs 60 gray market premium or GMP means the gray market is anticipating a 19.74 per cent itemizing achieve from the general public concern. The GMP relies on market sentiments and retains altering.
‘Grey market premium’ signifies traders’ readiness to pay greater than the difficulty worth.
Flair Writing Industries IPO: Should You Subscribe?
Giving the ‘subscribe for long term’ ranking, brokerage Anand Rathi in its notice stated, “On the valuation front, we believe that the company is fairly priced. Thus, we recommend a ‘Subscribe – Long Term’ rating to the IPO.”
It stated Flair Writing instructions a powerful place as one of many prime three gamers in India’s writing devices trade, boasting constant income development, a diversified product vary, and a major worldwide footprint.
Another brokerage Ventura Securities stated, “Indian writing and inventive trade is anticipated to develop at a CAGR of seven.7-8.4 per cent over FY2023-28 and the metal bottle trade is anticipated to develop at 14-16 per cent over FY2023-28. Flair goes to learn from these prospects. At the IPO worth of Rs 304, Flair is valued at a PE of 27 occasions as in comparison with trade common of 45 occasions.
It has additionally given ‘Subscribe’ suggestion for the IPO.
Flair Writing Industries IPO: Price, Lot Size
Flair Writing’s IPO includes a recent concern of fairness shares aggregating as much as Rs 292 crore and a suggestion-for-sale (OFS) of fairness shares price as much as Rs 301 crore by promoters and promoter group entities. Currently, promoters and promoter group entities personal 100 per cent stake within the firm.
Flair Writing Industries Ltd has set a worth band of Rs 288-304 a share for its IPO. The minimal lot measurement for an software is 49 shares. The minimal quantity of funding required by retail traders is Rs 14,896. The minimal lot measurement funding for NII is 14 heaps (686 shares), amounting to Rs 208,544, and for NII, it’s 68 heaps (3,332 shares), amounting to Rs 1,012,928.
Ahead of its preliminary public providing, Flair Writing Industries Ltd has mopped up Rs 178 crore from anchor traders. The firm has allotted 58.52 lakh fairness shares to 23 funds at Rs 304 apiece, which can also be the higher finish of the worth band.
Those that participated within the anchor ebook embrace — SBI Mutual Fund (MF), Aditya Birla Sun Life MF, Tata MF, ICICI Prudential Life Insurance Company, SBI Life Insurance Company, Troo Capital and Winro Commercial (India) Ltd.
The proceeds of the recent concern can be used for organising a producing facility for writing devices at Valsad district in Gujarat; funding the corporate’s capital expenditure and subsidiary Flair Writing Equipments Pvt Ltd (FWEPL).
Besides, the proceeds may also be used to assist the working capital necessities of the corporate and subsidiaries FWEPL and Flair Cyrosil Industries. Also, the cash can be used for fee of the mortgage and basic company functions. The firm, which owns the over 45-12 months-outdated flagship model ‘Flair’, is among the many prime three gamers within the total writing devices trade with a market share of about 9 per cent as of March 2023.
It manufactures and distributes writing devices, together with pens, stationery merchandise, and calculators, and has additionally diversified into manufacturing houseware merchandise and metal bottles. Nuvama Wealth Management Ltd (previously often called Edelweiss Securities Ltd) and Axis Capital Ltd are the ebook-operating lead managers to the IPO.
