Flair Writing Industries LTD. IPO: Review, Valuation & Today GMP

Flair Writing Industries Ltd IPO - Complete Overview

Established in 1976 under the visionary leadership of Mr. Khubilal Jugraj Rathod, FLAIR has emerged as a global force in the writing industry, driven by an unwavering commitment to quality and innovation. Over the past four decades, FLAIR has cemented its legacy as a pioneer in the writing world, leaving an indelible mark on the industry.

Their main brands are:

1. PIERRE CARDIN
2. HAUSER GERMANY
3. FLAIR CREATIVE
4. ZOOX
5. FLAIR HOUSEWARE

 

What does the company do?

FLAIR isn't just about pens anymore. As of March 31, 2023, their products are making waves in 97 countries. They've got certifications (ISO 9001:2015 and ISO 14001:2015) to prove they mean business globally. What sets them apart is that they create pens and tools with care, mixing craftsmanship and new ideas. Since 1976, FLAIR has been keeping up with what people need in the ever-changing world of writing.

 

 

IPO Overview

Flair Writing Industries IPO’s date is slated to be open for subscription from November 22, 2023, to November 24, 2023. This BSE NSE IPO follows a Book Built Issue type.

The Flair Writing Industries Ltd  IPO  price is fixed at Rs. 5 per share. The upcoming BSE NSE IPO will be listed on December 5, 2023.

The total issue size of this IPO amounts to Rs. 593 CR. Within this total issue, 35% is issued to retail investors.

 

Flair Writing Industries Ltd IPO timetable (Tentative)

Events	Date
IPO Opening Date	22 November 2023
IPO Closing Date	24 November 2023
IPO Allotment Date	30 November 2023
Refund initiation	1 December 2023
IPO Listing Date	5 December 2023

 

Flair Writing Industries Ltd IPO Lot Details

IPO Opening & Closing Date	22 November to 24 November 2023
Face value	Rs. 5 per Share
Issue Price	Rs. 288 to Rs. 304 per Share
Lot Size	49 Shares
Price of 1 lot	Rs. 14,896
Total Issue Size	[.] Shares (aggregating up to Rs. 593 Cr)
Offer for Sale	[.] Shares of Rs. 5 (aggregating up to Rs. 301.00 Cr)
Fresh Issue	[.] shares (aggregating up to Rs. 292.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Flair Writing Industries Ltd IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot

 

 

Flair Writing Industries Ltd IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

(Amount in Crores)

Period	FY 23	FY 22	FY 21
Total Assets	684.18	557.49	480.66
Total Revenue	954.29	587.64	310.87
PAT	118.10	55.15	0.99
Net worth	437.99	319.86	264.65
Reserve & Surplus	391.29	296.51	241.31
Total Borrowings	115.59	126.33	130.31

 

Revenue by Operations

(Amount in Millions)

Particulars	FY 23	FY 22	FY 21
Revenue from Operations	9,426.60	5,773.98	2,979.88
Other Income	116.31	102.43	128.85
Total Income	9,426.60	5,773.98	2,979.88

 

Revenue By Segment Breakdown

(Amount in Millions)

Brands	FY 23	FY 22	FY 21
Flair	4,719.43	2,511.94	1,273.06
Hauser	2,170.69	861.08	373.42
Pierre Cardin	557.58	375.98	152.02
Others	1,978.90	2,024.98	1,181.38
Total	9,426.60	5,773.98	2,979.88

 

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Setting aside money for buying things our company and its friend FWEPL need.
• Building a new place in Valsad, Gujarat, to make pens and stuff ("New Valsad Unit").
• Paying back some loans we took for our company and friends FWEPL and FCIPL.
• Helping our company and friends FWEPL and FCIPL with money for everyday needs.
• Using money for general company stuff and plans.

 

Promoters and Management of Flair Writing Industries Ltd IPO

The promoters of Flair Writing Industries Ltd IPO are Mr. Vimal Jugraj Rathod and Mr. Khubilal Jugraj Rathod.

 

Flair Writing Industries Ltd IPO Lead Managers

• Nuvama Wealth Management Limited
• Axis Capital Limited

 

Peers of  Flair Writing Industries Ltd IPO

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Flair Writing Industries Limited	5.00	24.01	12.66
Linc Limited	10.00	25.15	26.19
Kokuyo Camlin Limited	1.00	2.44	50.86

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's Drhp. Flair Writing Industries Limited’s price is fixed at Rs. 288 to Rs. 304 per share, with an EPS of Rs. 12.66. Based on the issue price the company's P/E ratio is calculated at 24.01.

 

Dividend Policy

The company has not declared dividends in the last three financial years and during the period starting from April 1, 2023, until the date of this Draft Red Herring Prospectus. Its capacity to declare dividends in the future hinges on its earnings and financial health.

 

IPO's Strengths

• They make a variety of products for different people, reaching a wide market.
• They sell their products globally, expanding beyond just India.
• They have a large network of sellers and distributors in India, helping them reach more customers.
• They dominate the pen market, making a significant amount of money from it.

 

IPO's Weaknesses

• Some of their product names are not officially protected, making them vulnerable to copying.
• Trying to sell too many new things at once might cause problems like losing money or misusing resources.
• Their distributors can sell products from other companies without any rules to prevent it, which could impact sales.
• Most of their revenue comes from a few key brands, making them vulnerable if something goes wrong with those brands.

 

 

IPO GMP Today

The Latest GMP of Flair Writing Industries Ltd IPO is Rs. 71

 

Conclusion

The Flair Writing Industries Ltd IPO offers a chance to invest in a well-established global player in the writing industry. The IPO opens on November 22, 2023, with a share price of Rs. 5. The company's financials show steady growth, but there are some weaknesses, such as unprotected product names and brand dependence.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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