flair writing industries ipo: Pen maker Flair files draft papers with Sebi for Rs 745 crore IPO

Pen maker Flair Writing Industries has filed draft papers with markets regulator Sebi for Rs 745 crore IPO.

The total offer size comprises a fresh issue of equity shares up to Rs 365 crore and an offer for sale (OFS) of up to Rs 380 crore.

Under the OFS segment, Khubilal Jugraj Rathod is to offload shares worth Rs 76 crore, and Vimalchand Jugraj Rathod is to sell up to Rs 57 crore. Other selling shareholders include Nirmala Khubilal Rathod, Manjula Vimalchand Rathod, Rajesh Khubilal Rathod, and Mohit Khubilal Rathod, Sangita Rajesh Rathod, Sonal Sumit Rathod, Shalini Mohit Rathod and Sumit Rathod.

Flair Writing is among the top three players in the overall writing instruments industry with a revenue of Rs 915 crore in FY23. According to Crisil’s report, the company is the largest player in the pens segment reporting a revenue of Rs 754 crore in fiscal 2023 from the pens writing instruments segment in India.

It is also among the top two organized players which have seen faster growth in revenue as compared to the overall writing and creative instrument industry growth rate. The industry grew at a CAGR of 5.5% between FY17-23, while Flair grew at a CAGR of approximately 14% during the same period.

The company has also reported the highest operating and net income margins of 17.8% and 9.6%, respectively in FY22. It occupies a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 2023.

The company proposes to utilise the net proceeds of the fresh issue towards setting up a new manufacturing facility for writing instruments in the Valsad district, funding capital expenditure, working capital requirements, and other general corporate purposes.

Nuvama Wealth Management (formerly known as Edelweiss Securities Limited) and Axis Capital are the book-running lead managers to the issue.

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