Flair Writing Industries IPO 2023: Date, Lot Size & Price

Established in 1976, Flair Writing Industries Limited has become a dynamic force in the development and manufacturing of writing instruments, adeptly meeting the evolving demands of the market. With a firm commitment to global business and social norms, the company proudly holds ISO 9001:2015 and ISO 14001:2015 certifications.

Flair, boasting brands like FLAIR, HAUSER, PIERRE CARDIN, and more, has cultivated robust partnerships with industry pioneers. In Fiscal Year 2023, the company achieved notable sales of 1,303.60 million pens, with 74.82% sold domestically and 25.18% exported globally. Expanding its offerings, Flair has recently ventured into manufacturing houseware products through its subsidiary, FWEPL, featuring casseroles, bottles, storage containers, serving solutions, cleaning solutions, baskets, and paper bins. 

As a leading Indian manufacturer and distributor, Flair Writing Limited, with its flagship brand Flair thriving for over 45 years, continues to broaden its product portfolio, including stationery, and calculators, and is now, actively entering the steel bottle market, reinforcing its commitment to innovation and quality.

Flair Writing Industries Limited-Journey

The company's origins trace back to a partnership named 'M/s Flair Writing Instruments,' established by a partnership deed dated January 6, 1986. The partnership commenced business on January 1, 1986, involving partners including Mr. Khubilal Jugraj Rathod, Mr. Vimalchand Jugraj Rathod, and others.

On June 11, 2016, the partners unanimously passed a resolution to convert 'M/s. Flair Writing Instruments' into a private limited company under Chapter XXI of the Companies Act, 2013. Consequently, 'Flair Writing Industries Private Limited' was incorporated on August 12, 2016, with equity shares issued to the partners in exchange for their capital in the partnership.

Following a scheme of amalgamation approved by the NCLT, Mumbai Bench on March 15, 2018, several companies were merged into the company, including FPPIPL, FSPL, FPSIPL, FPP(UK)PL, and FIIPL. This transformative process led to the formation of 'Flair Writing Industries Limited.'

Further evolution occurred when the company transitioned into a public limited company, resulting in a name change to 'Flair Writing Industries Limited.' This transition was formalized with a fresh certificate of incorporation issued on May 30, 2018, by the Registrar of Companies.

 Writing and Creative instruments industry in India

The organized sector dominates the Indian writing and creative instruments industry, anticipating a Compound Annual Growth Rate (CAGR) of 7.7% to 8.4% from Financial Years 2023 to 2028. Within this period, the pen segment is forecasted to experience a CAGR of 7.5% to 8.5%. In contrast, the Indian steel bottle industry is characterized by high fragmentation, expected to witness a robust growth trajectory at a CAGR of 14% to 16% from Financial Years 2023 to 2028. As of March 31, 2023, the Indian homeware industry is estimated to be in the range of Rs.400 to Rs.450 billion, with the kitchen appliances segment commanding a significant share of 40% to 45%.

Factors governing the Writing and Creative Instruments Industry in India

• Product Innovation: Constantly introduce new and unique writing and creative instruments.

• Brand Differentiation: Establish a strong and distinct brand identity.

• Emphasis on Affordability: Maintain focus on offering low-priced units.

• Robust Distribution Network: Build and sustain an efficient distribution footprint.

• Corporate Gifting Focus: Recognize and tap into the corporate gifting sector.

• Effective Packaging: Prioritize appealing and thoughtful product packaging.

Flair Writing Industries Limited IPO Details

The Flair Writing Industries Limited IPO subscription period spans from November 22, 2023, to November 24, 2023, with allotment results anticipated by Thursday, November 30, 2023. The listing on BSE and NSE is scheduled for Tuesday, December 5, 2023.

The Flair Writing Industries Limited IPO share price band is established at Rs. 288 to Rs. 304 per share. Interested investors need a minimum application of 49 shares, requiring a retail investment of Rs. 14,896. For sNII, the minimum lot size is 14 lots (686 shares) with an investment of Rs. 208,544, while for bNII, it is 68 lots (3,332 shares) with an investment of Rs. 1,012,928.

Purpose of Flair Writing Industries Limited   IPO Issue

• A new manufacturing facility for writing instruments is being established in District Valsad, Gujarat, requiring an investment of Rs.956.22 million.

• Capital expenditure needs for both the Company and its Subsidiary, FWEPL, amounting to Rs.867.48 million, are being funded.

• Working capital requirements for the Company and its Subsidiaries, FWEPL and FCIPL, are being addressed with a financial allocation of Rs.770.00 million.

• Certain borrowings availed by the Company and its Subsidiaries, FWEPL and FCIPL, are being repaid or pre-paid, either partially or in full, involving a sum of Rs.430.00 million.

• Funds are being allocated for general corporate purposes

Flair Writing Industries Limited  IPO Issue Key Dates:

 

Flair Writing Industries Limited IPO Issue Lot Size

Flair Writing Industries Limited IPO Reservation

Flair Writing Industries Limited Investment Potential:

Qualitative Factors:

• Leading presence in the pens and writing instruments sector in India.

• Diverse product range spanning various price points, catering to a broad consumer base.

• Extensive pan-India distribution network for both dealers and wholesalers/retailers in the writing instruments industry, with a robust international market presence.

• Recognized ability to collaborate with global brands in the writing instruments sector, positioning as one of India's largest exporters of writing and creative instruments.

• Large-scale, high-quality manufacturing capabilities coupled with a commitment to innovation.

• Seasoned Promoters supported by a proficient senior management team.

• Proven historical track record of robust financial performance, boasting industry-leading profitability.

Quantitative Factors:

Key Performance Indicator

Risk Factors:

• The company's success hinges on its ability to adapt promptly to consumer needs and maintain an optimal product mix within the writing instruments industry.

• A substantial portion of the company's revenue is derived from the sale of products under the "Flair," "Hauser," and "Pierre Cardin" brands, making the protection of these brands and reputation critical to its business.

• The effectiveness of the company's distribution network, both in India and internationally, holds significant importance for ensuring successful product sales.

• Any degradation in brand reputation and consumer awareness poses a substantial threat to the company's business.

• The company has faced adverse impacts from the COVID-19 pandemic, with ongoing uncertainties regarding its future business, operations, and financial performance.

• Potential disruptions in manufacturing operations, including labor unrest or resource shortages, stand as significant risks that could adversely affect the company's business, operations, and overall prospects.

In conclusion, Flair Writing Industries Limited, established in 1976, has evolved into a dynamic force in the writing instruments industry. With a commitment to global norms and ISO certifications, the company boasts a diverse brand portfolio and robust partnerships. Its recent foray into houseware products signifies strategic expansion.

The IPO, scheduled from November 22 to November 24, 2023, with a listing date on December 5, 2023, presents a significant investment opportunity. The Flair Writing Industries Ltd IPO share price band of Rs. 288 to Rs. 304 reflects the company's valuation. The funds raised will support a new manufacturing facility, capital expenditures, working capital, and debt repayment.

The historical track record, diverse product range, and strong market presence position Flair as a potential leader in the industry.

Frequently Asked Questions

1. When is the Flair Writing Industries Limited IPO subscription period?

The subscription period for the Flair Writing Industries Limited IPO is from November 22, 2023, to November 24, 2023.

2. What is the Flair Writing IPO share price?

The Flair Writing Industries Limited IPO share price is set in the range of Rs. 288 to Rs. 304 per share.

3. How much is the minimum investment for retail investors in the Flair Writing IPO?

Retail investors need a minimum application of 49 shares, requiring an investment of Rs. 14,896.

4. What is the purpose of the IPO funds raised by Flair Writing Industries Limited?

The IPO funds will be utilized for various purposes, including setting up a new manufacturing facility, funding capital expenditure, addressing working capital requirements, and repaying certain borrowings.

5. When is the listing date for Flair Writing Industries Limited on BSE and NSE?

Flair Writing Industries Limited is scheduled to be listed on BSE and NSE on Tuesday, December 5, 2023.

 

Related Blogs

• FedBank Financial Services IPO 2023

• Tata Technologies Limited IPO 2023

• Indian Renewable Energy Development Agency Limited IPO

• ASK Automotive Limited IPO

• Protean eGov Technologies IPO 2023

• ESAF Small Finance Bank IPO 2023

• Honasa Consumer Limited IPO 2023

• The Road to Public Ownership: Updater Services Limited's IPO

• JSW Infrastructure Limited IPO 2023

• IPO - Latest IPO, Upcoming IPO, Recent Closed IPO

• Initial Public Offerings IPO Account

 

Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.