IPO screener: Flair Writing issue closes today 

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Today is the last day to subscribe into the initial public offering of Flair Writing Industries. The Rs 593-crore IPO, which comes with a price band of Rs 288-304 a share and a market lot of 49 shares, was subscribed 6.12 times so far. The issue received bids for 8.82 crore equity shares as against 1.44 crore shares on the offer, as per data available on the exchanges.

The IPO comprises a fresh issuance of shares worth Rs 292 crore by the company, and an offer-for-sale (OFS) of Rs 301 crore worth of shares by the Rathod family.

The IPO was subscribed 7.16 times in the retail category and 10.05 times in Non-Institutional Investors’ portion. QIB portion was subscribed 1.36 times. 

The company has reserved not more than 50 per cent of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15 per cent for NII and not less than 35 per cent of the offer is reserved for Retail Investors.

On Tuesday, the Mumbai-based writing instruments manufacturing company Flair Writing Industries mobilised Rs 177.9 crore from anchor investors. FlairWriting has finalised the allocation of 58,51,972 equity shares to anchor investors at Rs 304 per share to anchor investors, that included marquee names such as Theleme India Master Fund, Natixis International Funds, Troo Capital, Winro Commerical, SBI Mutual Fund, HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Tata Mutual Fund, Mirae Asset Mutual Fund, ICICI Prudential Life Insurance Company, and Carnelian Structure Shift Fund invested in the company via anchor book.

Flair will utilise net fresh issue proceeds for setting up a new manufacturing facility for writing instruments in Valsad at a cost of Rs 55.99 crore. Further, it will spend Rs 86.75 crore for capital expenditure, and Rs 77 crore for working capital requirements. The debt amounting to Rs 43 crore will be repaid by the company via fresh issue proceeds, and the remaining funds will be used for general corporate purposes.

The company has raised Rs 73 crore in a pre-IPO placement of 24.01 lakh equity shares at a price of Rs 304 a share. Accordingly, the fresh issue size of the IPO has been reduced to Rs 292 crore, from Rs 365 crore earlier.

The book running lead managers are Nuvama Wealth Management Limited and Axis Capital Limited, and the issue’s registrar is Link Intime India Private Ltd.

Flair is a company that designs and manufactures writing instruments.