Flair Writing IPO: Writing instrument manufacturer Flair Writing Industries is set to launch its initial public offering (IPO) on Wednesday, November 22. Flair is among the top 3 players in the overall writing instrument industry with a revenue of ₹915.55 crore in FY23 and holds a market share of approximately 9% in the total writing and creative instrument industry in India, as on March 31, 2023.
Before the Flair Writing IPO opens, let’s take a look at what the gray market premium (GMP) indicates:
Flair Writing IPO GMP Today:
Flair Writing IPO GMP today, or gray market premium today, is ₹60 per share, according to market observers. This indicates that Flair Writing stock shares are trading higher ₹60 in the gray market than their issue price of ₹304 each. This shows that Flair Writing IPO GMP today is 19.74%.
Considering the GMP today of ₹60 and the issue price of ₹304, the estimated list price of Flair Writing shares would be ₹364 per ( ₹304 + ₹60). Flair Writing shares will be listed on BSE and NSE.
Read here: Flair Writing Industries Limited IPO will open for subscription on November 22, sets price band at ₹288-304 each
Flair Writing IPO Details
Flair Writing IPO opens for subscription on November 22nd and closes on November 24th. The IPO allotment is expected to be finalized on November 30 and the tentative listing date is set for December 5.
Flair Writing IPO price band was set at ₹288 to ₹304 per share. The company plans to raise ₹593.00 crore from the initial public offer which consists of fresh issue of 96.52 lakh equity shares aggregated to ₹292.00 crore and an offer for sale (OFS) of 99.01 lakh shares aggregating to ₹301.00 crores.
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The IPO lot size is 49 shares and the minimum investment amount required from retail investors is ₹14,896.
Nuvama Wealth Management and Axis Capital are the book-running lead managers of the Flair Writing IPO, while Link Intime India Private Ltd is the IPO registrar.
Flair Writing IPO Review
Flair Writing Industries has established a consistent track record of strong and consistent financial performance, with strong improvement in margins as FY21 was a washout year for writing instruments due to lockdown in schools and offices.
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Analysts at Reliance Securities believe that the company’s revenues and net profit have both improved over the past few years and margin improvement will continue with new products in various categories and individual strong brands at various price points pushing the growth trajectory in the coming years.
“Flair Writing is one of the leaders in writing instruments both in domestic and export market, industry leading profit, experienced promoters of strong professional team, faster growth of 14% CAGR compared to 5.5% for industry for FY17-23, strong dominance in FY17 -23. its categories, debt-free are the key investment positives,” said Reliance Securities.
The brokerage recommended ‘Subscribe’ to the issue.
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 21 Nov 2023, 13:22 IST