Mumbai-based stationery company Flair Writing Industries has announced that its initial public offering (IPO) will be open for subscription from November 22 to November 24. The company has set a price band of ₹288-304 for the issue, with the goal of raising up to ₹593 crore.
In addition to the well-known Flair brand of pens, the company also holds the rights to international brands such as Hauser and Pierre Cardin. The proceeds from the IPO will go toward establishing a new manufacturing facility in Valsad, Gujarat, and other expansion plans.
Flair Writing Industries is focused on expanding its product range and exploring new categories, such as houseware and school and office supplies. The company is targeting growth in the mid-premium and premium segments to increase margins, as well as strategic expansion of exports. The company currently has a 7.1% market share in the export of writing and creative instruments.
Sumit Rathod, whole time director at Flair Writing Industries, has expressed confidence in the company’s future, citing consistent growth and outperformance of the market. A report Kunvarji Wealth Solutions has given the IPO a ‘subscribe’ rating, noting the company’s strong financials and growth prospects.
The company’s revenues have seen a compounded annual growth rate (CAGR) of 22.85% from FY21 to FY23. Its net profit almost doubled in FY23 compared to the previous year. The company’s financials compare favorably to its peers, including Cello World, Linc, and Kokuyo Camlin.
However, the company has identified certain risk factors, including plant shutdowns, labor unrests, regulatory issues, and increased competition from both organized and unorganized players in the writing instrument space.
In light of the upcoming IPO, investors are closely watching Flair Writing Industries as it enters the public market, hoping to capitalize on the company’s strong brand and growth potential.