About Company’s Business:
They are positioned as one of the top three contenders in the overall writing instruments industry, holding a market share of around 9% in the broader writing and creative instruments sector in India, as of March 31, 2023 (Source: CRISIL Report). Their prominent brand, “Flair,” has maintained a market presence for more than 45 years. The company engages in the manufacturing and distribution of various writing instruments such as pens, stationery products, and calculators. Additionally, they have expanded their product range to include houseware items and steel bottles.
About the Industry:
Organized players dominate the Indian writing and creative instruments industry, and it is anticipated to experience a compound annual growth rate ranging from 7.7% to 8.4% during the Financial Years 2023 to 2028. Specifically, the pen segment is expected to exhibit a compound annual growth rate between 7.5% and 8.5% over the same period. In contrast, the Indian steel bottle industry is characterized by high fragmentation, with an anticipated compound annual growth rate of 14% to 16% between the Financial Years 2023 and 2028. As of March 31, 2023, the Indian homeware industry is estimated to have a value ranging from â‚ą400 to â‚ą450 billion, with the kitchen appliances segment holding a market share of 40% to 45%.
Key Financial Information (â‚ą in million):
| Particulars | As of June 30, 2023 | As on 2023 | As on 2022 | As on 2021 |
|---|---|---|---|---|
| (A) Equity share capital | 466.94 | 466.94 | 233.47 | 233.47 |
| (B) Net worth | 4701.58 | 4379.87 | 3198.55 | 2646.54 |
| (C) Revenue from operations | 2466.98 | 9426.6 | 5773.98 | 2979.88 |
| (D) Restated profit after tax for the year | 321.38 | 1181 | 551.51 | 9.89 |
| (E) Restated basic earnings per equity share | 3.44* | 12.66 | 5.91 | 0.11 |
| (F) Restated diluted earnings per equity share | 3.44* | 12.66 | 5.91 | 0.11 |
| (G) Net asset value per equity share | 50.34 | 46.9 | 34.25 | 28.34 |
| (H) Total borrowings | 1266.65 | 1155.92 | 1263.32 | 1303.11 |
Objective of the Issue:
-
Setting up the New Valsad Unit
-
Funding capital expenditure of our Company and our Subsidiary, Flair Writing
Equipments Private Limited -
Funding working capital requirements of our Company and our Subsidiaries, Flair Writing Equipments Private Limited and Flair Cyrosil Industries Private Limited
-
Repayment/pre-payment, in part or full, of certain borrowings availed by our Company and our Subsidiaries, Flair Writing Equipments Private Limited and Flair Cyrosil Industries Private Limited
-
General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Wednesday, November 22, 2023 |
| Close Date | Friday, November 24, 2023 |
| Issue Size | â‚ą593.00 Crores |
| Price | â‚ą288 to â‚ą304 per share |
| Lot Size | 49 Shares |
| Basis of Allotment | Thursday, November 30, 2023 |
| Initiation of Refunds | Friday, December 1, 2023 |
| Credit of Shares to Demat | Monday, December 4, 2023 |
| Listing Date | Tuesday, December 5, 2023 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
Do let us know your thoughts on this IPO.