Flair Writing Industries Ltd IPO Timeline

Flair Writing Industries Ltd IPO opens on 22-Nov-2023, and closes on 24-Nov-2023. The Flair Writing Industries Ltd IPO bid date is from 22-Nov-2023 to 24-Nov-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Flair Writing Industries Ltd IPO Opening Date 22-Nov-2023
Flair Writing Industries Ltd IPO Closing Date 24-Nov-2023
Basis of Allotment 29-Nov-2023
Initiation of Refunds 29-Nov-2023
Credit of Shares to Demat 30-Nov-2023
Flair Writing Industries Ltd IPO Listing Date 01-Dec-2023

Flair Writing Industries Ltd IPO Lot Size

Flair Writing Industries Ltd IPO lot size is 49 shares. A retail-individual investor can apply for up to 13 lots (637 shares or 193648).

Application Lots Shares Amount
Minimum 1 49 ₹14896
Maximum 13 637 ₹193648

Flair Writing Industries Ltd IPO Details

Flair Writing Industries Ltd IPO Date 22-Nov-2023 to 24-Nov-2023
Flair Writing Industries Ltd IPO Face Value Shares of ₹5 per share
Flair Writing Industries Ltd IPO Price ₹288 to ₹304 per share
Flair Writing Industries Ltd IPO Lot Size 49
Issue Size Shares of ₹5 (aggregating up to ₹593 Cr)
Fresh Issue Shares of ₹5 (aggregating up to ₹292 Cr)
Offer for Sale Shares of ₹5 (aggregating up to ₹301 Cr)
Issue Type Book Built Portion
Listing At BSE, NSE
QIB Shares Offered Not more than 4118052
Retail Shares Offered Not less than 7206595
NII (HNI) Shares Offered Not less than 3088541
Company Promoters Khubilal Jugraj Rathod, Vimalchand Jugraj Rathod, Rajesh Khubilal Rathod.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Setting up the new Valsad Unit
  • 2 Funding capital expenditure of the company and its subsidiary FWEPL
  • 3 Funding working capital requirements of the company and its subsidiary FWEPL & FCIPL
  • 4 Repayment/pre-payment in part or full of certain borrowings availed by the company and subsidiary FWEPL and FCIPL
  • 5 General Corporare Purposes

Company Financials

Flair Writing Industries Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2023 633.90 917.40 111.60
03-2022 539.01 564.61 53.88
Amount in ₹ Crore
  • Largest player in the pens writing instruments segment in India.
  • Diversified range of products across various price points catering to a wide spectrum of consumers.
  • Largest pan-India distributor/dealer network and wholesale/retailer network in the writing instruments industry and strong presence in targeted markets abroad
  • Ability to partner with international brands in the writing instruments industry and one of the largest exporter of writing and creativ instruments in India.
  • High quality manufacturing at a large scale coupled with innovation capabilities.
  • Experienced Promoters supported by professional senior management team.
  • Historical track-record of strong financial performance with industry-leading profitability.
  • The company's success depends on its ability to respond and adapt to consumer needs and maintain an optimal product mix in terms of production volumes and profitability in the writing instruments industry. Any inability to successfully implement the company business plan and growth strategy or effectively manage its growth could lead to a decline in the demand of our products and have a material adverse effect on the company business, operations, prospects or financial results.
  • The company derives a significant portion of the revenue from the sale of the products under the "Flair", "Hauser" and "Pierre Cardin" brands, and any harm to such brands or reputation may adversely affect its business, financial condition, cash flows and results of operations.
  • The company is dependent on its distribution network in India and overseas to sell of the products and any disruption in the distribution network could have a material adverse effect on the company business, operations, prospects or financial results.
  • Any deterioration in the reputation and the consumer awareness of the company brands and products could have a material adverse effect on its business, operations, prospects or financial results.
  • The company's business and operations had been adversely impacted by the COVID-19 pandemic and the future impact on its business, operations and financial performance is uncertain and could continue for an unknown period of time.
  • A slowdown or shutdown in the company manufacturing operations, including due to labour unrest, or any inability to obtain adequate electricity, fuel or water with respect to such operations could have a material adverse effect on its business, operations, prospects or financial results.
  • Its inability to accurately forecast demand for its products and manage the company inventory may have a material adverse effect on its business, operations, prospects or financial results.
  • The company operates in a competitive business environment. Competition from existing players and new entrants in the industry could have a material adverse effect on its business, prospects, operations or financial results.
  • The company expansion into new product categories and an increase in the number of products offered may expose it to new challenges and more risks.
  • Its inability to grow the business in new geographic markets may affect its growth which could have a material adverse effect on the company business, operations, prospects or financial results.
  • As of the date of this Draft Red Herring Prospectus, certain of the trademarks are not registered in the name of the Company. If the company is unable to register trademarks or protect the existing intellectual property, or if the company inadvertently infringe on the trademarks of others, its may be subjected to legal action and the reputation, business, operations, prospects or financial results may be materially and adversely affected.
  • The company has not entered into any definitive agreements to use a portion of the proceeds of the Offer, including for setting up a new manufacturing facility for writing instruments at District Valsad, Gujarat. The company inability to successfully implement any future capacity expansion plans could have a material adverse effect on its business, prospects, operations, prospects or financial results.
  • An increase in the cost of or a shortfall in the availability of raw materials from the suppliers due to various reasons could have a material adverse effect on its business, operations, prospects or financial results as the company may not be able to pass on such costs to the customers. The company do not have long term contracts with its suppliers and the company depend on a limited number of supplier for certain raw materials.
  • Any failure by third party transportation providers for delivery of raw materials or products to it and our super-stockists could have a material adverse effect on its business, operations, prospects or financials results.
  • The company has significant working capital requirements and the objects of the Offer include funding working capital requirements of the Company and our Subsidiaries, which is based on certain assumptions and estimates. Any failure in arranging adequate working capital for the company operations may adversely affect its business, results of operations, cash flows and financial conditions.
  • There are legal proceedings pending involving the Company, the Promoters and the Directors which if determined unfavorably, may have a material adverse effect on its reputation, business, operations, prospects or financial results.
  • The company is dependent on certain third party vendors from whom its procure certain components on a non-exclusive basis and any significant loss or disruption of production or deterioration in product quality from the company third party vendors for any reasons could have a material adverse effect on its business, operations, prospects or financial results. The company do not have contractual arrangements with such third party vendors.
  • The customers of the original equipment manufacturer business may not continue to outsource manufacturing to it or there may be a downward trend in such business, which could have a material adverse effect on its business, operations, prospects or financial results.
  • The demand of writing and creative instruments in foreign countries is subject to international market conditions that could adversely affect its business, financial condition and results of operations. Further, the company face risks related to the geographic concentration of the exports and may not be successful in penetrating new export markets.
  • Under-utilization of the manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, prospects and future financial performance.
  • If the company fail to obtain, maintain or renew the statutory and regulatory licenses, permits and approvals required for the business and operations, its business, operations, prospects or financial results may be materially and adversely affected. As of the date of this Draft Red Herring Prospectus, certain of the company statutory and regulatory approvals are not registered in the name of the Company.
  • The company depends heavily on the Key Management Personnel and Senior Management, and loss of the services of one or more of the key executives or a significant portion of the management personnel could weaken the company management team and have a material adverse effect on its business, operations, prospects or financial results.
  • The company is dependent on the Promoters, the Directors, the Promoter Group and the Group Companies for certain aspects of its business and operations, and certain Directors, Group Companies and Promoter Group entities are engaged in business activities similar to the company own, which could lead to a conflict of interest.
  • Any delays and/or defaults in payments from the customers could result in increase of working capital investment and/or reduction of the company profits, thereby affecting its business, operations, prospects and financial results. Further, the company accounts receivable collection cycle exposes it to client credit risk.
  • The company has certain contingent liabilities disclosed and not provided for as of March 31, 2023, which, if materialized, could have a material adverse effect on its business, financial condition and results of operations.
  • Any inability to meet the company obligations under various business agreements, including financial and other covenants under the debt financing arrangements could materially and adversely affect its business, operations, prospects or financial results.
  • The company insurance coverage may not be sufficient or adequate to protect it against all material hazards, which may materially and adversely affect its business, operations, prospects or financial results.
  • The company face foreign exchange risks that could materially and adversely affect its business, operations, prospects or financial results.
  • The company has made certain delayed or inaccurate statutory form filings with the RoC in the past and are delayed in filing of other statutory forms with the RoC. The company has also been delayed in filing the GST returns and payment of contribution towards employee provident fund in the past.
  • Non-compliance with and changes in, safety, environmental and labour laws and other applicable regulations, may materially and adversely affect its business, operations, prospects or financial results.
  • The Company will not receive any proceeds from the Offer for Sale portion and the Company's management will have flexibility in utilizing the Net Proceeds, subject to certain approvals. There is no assurance that the Objects of the Offer will be achieved within the timeframe expected or at all, or that the deployment of the Net Proceeds in the manner intended by us will result in any increase in the value of your investment. Further, the funding plan has not been appraised by any bank or financial institution.
  • The company propose to repay or prepay all or a portion of certain outstanding borrowings availed by the Company and its Subsidiaries, Flair Cyrosil Industries Private Limited and Flair Writing Equipments Private Limited.
  • The company has not placed orders for machinery of value of Rs. 750.19 million constituting approximately 100% of the value of the total machinery to be purchased from the Net Proceeds.
  • The Registered Office and certain manufacturing plants are situated on lands/in buildings that are not owned by it. In the event that the company lose such rights or are required to renegotiate arrangements for such rights, the company business and financial results could be materially and adversely affected.
  • Significant disruptions of information technology systems or breaches of data security could have a material adverse effect on its business, operations, prospects or financial results.
  • The company has, in the past, entered into related party transactions and may continue to do so in the future.
  • Information relating to the historical capacity of the manufacturing plants included in this Draft Red Herring Prospectus is based on various assumptions and estimates and future production and capacity may vary.
  • The withdrawal/ cessation/ reversal of benefits and exemptions availed by the Company could have a material adverse effect on its business, operations, prospects or financial results.
  • The company ability to pay dividends in the future will depend on its earnings, financial condition, cash flow, working capital requirements, capital expenditures and restrictive covenants of the financing arrangements.
  • Certain of the Directors, Key Management Personnel and members of the Senior Management have interests in us other than reimbursement of expenses incurred, normal remuneration or benefits.
  • The Promoters and members of the Promoter Group will continue to retain majority shareholding in it after the Offer, which will allow them to exercise significant influence over it, which may limit your ability to influence the outcome of matters submitted for approval of the Shareholders.
  • Some of the agreements entered into by it may not be adequately stamped or may not have been registered.
  • Industry information included in this Draft Red Herring Prospectus has been derived from an industry report commissioned and paid for by it exclusively in connection with the Offer.
  • Unsecured loans taken by the Company from certain Directors and other related parties of the Company may be recalled at any time.
  • The company has included certain Non-GAAP Measures, industry metrics and key performance indicators related to its operating and financial performance in this Draft Red Herring Prospectus that are subject to inherent challenges in measurement. These Non-GAAP Measures, industry metrics and key performance indicators may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
  • If the company is unable to raise additional capital, its business, operations, prospects or financial results may be materially and adversely affected.
  • Focus on growing its existing product portfolio and diversification of its product range.
  • Emphasis on Mid-premium Segment and Premium Segment to increase margins.
  • Continue to increase production capacity and enhance capacity utilization.
  • Strengthening presence in key geographies along with strategically expanding exports.
  • Deepen its sales and distribution network.
  • Further strengthen its brands.

Flair Writing Industries Ltd IPO Promoter Holding

Pre Issue Share Holding 62.69%
Post Issue Share Holding 51.09%

Flair Writing Industries Ltd IPO Subscription Status (Bidding Detail)

The Flair Writing Industries Ltd IPO is subscribed 46.68 times on Nov 24, 2023 05:00:00 PM. The public issue subscribed 13.01 times in the retail category, 115.6 times in the QIB category, and 33.37 times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) 115.6 33.37 13.01 - 46.68

Flair Writing Industries Ltd IPO Prospectus

Flair Writing Industries Ltd IPO Listing Date

Listing Date 01 Dec 23
BSE Script 544030
NSE Symbol FLAIR
Listing In BSE, NSE
ISIN INE00Y201027
IPO Price ₹304
Face Value ₹5

Flair Writing Industries Ltd IPO Registrar

Link Intime India Pvt Ltd

Phone: +91 810 811 4949
Email: flairwriting.ipo@linkintime.co.in
Website: www.linkintime.co.in

Flair Writing Industries Ltd IPO Lead Manager(s)

  1. Nuvama Wealth Management Ltd
  2. Axis Capital Ltd

FAQs on Flair Writing Industries Ltd IPO

Flair Writing Industries Ltd IPO, which opens for subscription from 22-Nov-2023 to 24-Nov-2023 has an issue size of ₹593 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Flair Writing Industries Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Flair Writing Industries Ltd IPO Opens for subscription from 22-Nov-2023 to 24-Nov-2023.

The lot size of Flair Writing Industries Ltd is 49 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14896 and ₹193648 respectively.

Allotment date for Flair Writing Industries Ltd is 29-Nov-2023 and refund of application amount (in case allotment is not received) will begin from 29-Nov-2023. If your allotment goes through, then shares will be credited in your Demat account by 30-Nov-2023.

The registrar for Flair Writing Industries Ltd IPO is Link Intime India Pvt Ltd. You can check your IPO allotment status on the registrar's website.

The shares of Flair Writing Industries Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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