Flair Writing Industries IPO

Flair Writing Industries Limited

₹14,112 /49 sharesMinimum Investment

Flair Writing Industries IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹304.00₹501.00₹197.00 (64.80%)

Flair Writing Industries IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
22 Nov ‘23 - 24 Nov ‘23₹14,11249₹288 - ₹304
Issue SizeIPO Doc
593.00Cr
RHP PDF

Subscription Status As on 24 Nov '23, 5:15 PM

  • Qualified Institutional Buyers
    115.60x
  • Non-Institutional Investor
    33.37x
  • Retail Individual Investor
    13.01x
  • Employees
    0.00x
  • Total
    46.68x

About Flair Writing Industries

Flair Writing Industries was incorporated in 2016. Its product lineup includes various types of pens (ball pens, fountain pens, gel pens, roller pens, and metal pens), stationery products (mechanical pencils, highlighters, correction pens, markers, gel crayons, and kids' stationery kits), and calculators. With a diverse product range spanning various price points, the company caters to a broad consumer base, including students, professionals, and offices. The manufacturing and distribution portfolio encompasses pens, stationery products, calculators, and more. The company has also expanded into the production of houseware products and steel bottles. The company operates from 11 manufacturing plants situated in Valsad, Gujarat; Naigaon (near Mumbai), Maharashtra; Daman, Union Territory of Dadra and Nagar Haveli and Daman and Diu; and Dehradun, Uttarakhand.;
Parent Organisation
Flair Writing Industries Limited
Founded
2016
Managing Director
Mr. Vimalchand Jugraj Rathod

Strengths & Risks

  • Flair Writing Industries ranks among the top three contenders in the writing instruments sector, with revenue of Rs.915.55 crore during 2023. The company has a market share of around 9% within the broader landscape of writing and creative instruments in India. Their flagship product, Flair, has been on the market for 45 years.
  • Recently, through its subsidiary FWEPL, the company ventured into manufacturing various houseware products, including casseroles, bottles, storage containers, serving solutions, cleaning solutions, and basket and paper bins.
  • As of March 31, 2023, their product portfolio has an offering of 699 different items.
  • Flair Writing Industries recorded a revenue of Rs.754.18 crore in the pen writing instruments category in India during the year 2023.
  • The company recorded a CAGR of around 14% during the same period. In 2022, the company boasted the highest operating and net income margins, reaching 17.8% and 9.6%, respectively, surpassing other key players in the writing instruments sector.
  • In 2023, Flair Writing Industries achieved substantial sales, with 1,303.60 million units of pens. Of this, 74.82% (975.30 million units) were sold domestically, while 25.18% (328.30 million units) were exported globally.
  • Compared to competitors like DOMS, Camlin, Linc, and Luxor, Flair Writing Industries has a large distributor/dealer network and wholesale/retailer network in the Indian writing instruments segment, comprising approximately 7,700 distributors/dealers and around 315,000 wholesalers/retailers as of March 31, 2023.
  • As of the same date, Flair Writing Industries had established relationships with 54 international distributors, facilitating product distribution and sales in 97 countries and strategically mitigating concentration risk.
  • From 2021 to 2023, key financial metrics, including revenue from operations, profit after tax, EBITDA (earnings before interest, taxes, depreciation, and amortization), and return on capital employed ratio, exhibited compound annual growth rates of 77.86%, 992.77%, 133.21%, and 200.03%, respectively.
  • Flair Writing Industries relies heavily on its distribution network in India and overseas for product sales. Any disruption in this network could significantly harm the company's business, operations, prospects, or financial results.
  • Flair Writing Industries has not finalized any agreements to allocate a portion of the proceeds from the offer, including establishing a new manufacturing facility for writing instruments in District Valsad, Gujarat. The failure to effectively implement future capacity expansion plans could negatively impact the company's business, operations, prospects, or financial results.
  • There are ongoing legal proceedings involving Flair Writing Industries, its promoters, and directors. Unfavorable determinations in these proceedings may substantially affect the company's reputation, business, operations, prospects, or financial results.
  • As of March 31, 2023, the company has disclosed contingent liabilities that were not provided for, and if they materialize, they could have a significant adverse impact on the business, financial condition, and results of operations.
  • Unsecured loans amounting to Rs. 27.84 crore obtained by the company from certain directors and other related parties may be subject to recall at any time.
  • Flair Writing Industries faces a potential risk as its insurance coverage might not shield the company from all significant hazards. Inadequate coverage could substantially and adversely impact the business, operations, prospects, or financial results.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular288 - 304₹2 Lakh
High Networth Individual288 - 304₹2 - 5 Lakh
For Flair Writing Industries IPO, eligible investors can apply as Regular.
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