Flair Writing Industries sets IPO price range to raise Rs 593 crore

MUMBAI – Flair Writing Industries, a prominent player in India’s writing instruments market, has announced the opening of its initial public offering (IPO) with a price range set between Rs 288 and Rs 304 per share. The company, which operates 11 manufacturing plants across several Indian states, is looking to raise Rs 593 crore through this public issue.

The subscription period for the IPO is slated to begin on Wednesday and will remain open until Friday. Retail investors interested in the offering can purchase lots with a minimum investment of Rs 14,896 and a maximum of Rs 1,93,648. The public issue comprises a fresh issuance of shares worth Rs 292 crore and an offer for sale (OFS) of Rs 301 crore by the Rathod family.

Flair Writing Industries decided to reduce the fresh issue size from Rs 365 crore to Rs 292 crore after securing Rs 73 crore through a preferential issue to Volrado Venture Partners Fund III – Beta. Consequently, the total issue size was brought down from Rs 745 crore to Rs 593 crore.

The funds raised from the IPO are earmarked for several key initiatives:

• Establishing a new manufacturing facility in Valsad, Gujarat, with an estimated cost of Rs 95.6 crore.
• Allocating funds for capital expenditures and working capital requirements.
• Repaying debts amounting to Rs 43 crore.

The company has reserved half of the issue size for qualified institutional buyers, while retail investors and high-net-worth individuals will have the opportunity to invest in the remaining shares.

Flair Writing Industries holds a significant presence in the Indian market with a 9% share. In the fiscal year ending in March 2023, the company reported revenues of Rs 915.55 crore. This IPO marks one of several public issues available during this busy period for the Indian stock market.

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