Flair Writing signs in to Dalal Street with 66% premium over issue price
Flair Writing Industries Ltd. marked a robust debut on the stock exchanges on Friday, with its shares listing at a 66 per cent premium over the issue price.
On the Bombay Stock Exchange (BSE), the stock debuted at Rs 503 per share, reflecting a premium of 65.5 per cent, while on the National Stock Exchange, it listed at Rs 501, indicating a 64.8 per cent increase over the issue price of Rs 304.
Ahead of the official listing, the company’s shares traded with a premium of Rs 104 in the grey market.
The successful listing comes on the heels of a highly subscribed initial public offering (IPO), with investor demand reaching nearly 46.6 times the subscription at close.
Flair Writing, positioned as one of the top three players in the writing instruments industry, boasts a market share of approximately 9 per cent in the overall writing and creative instruments sector in India as of March 2023. Its flagship brand, “Flair,” has enjoyed a market presence for over 45 years.
Following the solid listing, Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said, “Flair Writing is a leading manufacturer of writing instruments in India with a well-diversified product portfolio and a strong brand reputation. The company has a proven track record of growth and profitability. The IPO was oversubscribed 49.28 times, indicating strong investor interest.”
“Overall, Flair Writing Industries Ltd. is a fundamentally sound company with a strong growth outlook,” she added.
Flair Writing manufactures and distributes a range of writing instruments, including pens, stationery products, and calculators. The company has also ventured into the production of houseware products and steel bottles. Its products are recognised for quality and brand reputation, earning it a loyal customer base in India and international markets. The company maintains a robust distribution network to ensure accessibility to consumers nationwide.
In terms of financial performance, Flair Writing reported the highest operating and net income margins among peers, standing at 17.8 per cent and 9.6 per cent, respectively, in FY22. As of March 2023, it holds a market share of approximately 9% in the overall writing and creative instruments industry in India.
The net proceeds from the IPO’s fresh issue will be allocated for setting up a new manufacturing facility for writing instruments in Valsad district, capital expenditure, working capital requirements, and general corporate purposes.