Flair Writing made a sensational debut on the D-Street, surpassing the grey market’s expectations with a staggering 65% premium above its issue price. The stock, which was listed at ₹503 per share as compared to its issue price of ₹304, had a market cap of ₹5,301 crore according to the Bombay Stock Exchange.
The company’s ₹593 crore issue was subscribed 46.6x, with strong interest from institutional investors. The QIB portion of the issue was subscribed 115.6 times the shares on offer, reflecting the high level of optimism in the markets with regards to public offers.
Market experts believe that the healthy listing is justified due to the high growth seen in the writing instruments and stationery segment, along with ongoing expansion plans to tap into future growth. Rajan Shinde, a research analyst at Mehta Equities, recommended short-term investors book profits of over 25%, while advising long-term investors to hold onto their shares.
This week, several other companies also debuted on D-Street, including Tata Technologies, Gandhar Oil, Fedbank Financial Services, and IREDA, each offering different listing gains and subscription details.
Flair Writing, which manufactures and sells the Flair brand of pens, has also acquired rights to international brands like Hauser and Pierre Cardin’s writing instruments. The company’s IPO includes a fresh issue of ₹292 crore and an offer for sale of ₹301 crore. The net proceeds from the fresh issue will be used to set up a new manufacturing facility for writing instruments in Valsad, Gujarat, as well as for funding capex, working capital requirements, and loan payment.
Despite its strong performance, the company has acknowledged risk factors in its RHP, including plant shutdowns, expansion challenges, labor unrest, and regulatory issues, as well as potential impact from increased competition. CRISIL data shows that in FY23, organized players had a 78-80% market share in the writing instrument space, with unorganized players making up the remainder.
For further details, check out the articles below:
– Stellar listing gains: Book profits if there are bumper gains, say experts
– Tata Tech and Gandhar Oil shine on debut, while Fedbank falters