Flair Writing Industries has received market regulator SEBI approval to raise ₹745 crore through an initial public offering.

The IPO comprises a fresh issue of equity shares aggregating up to ₹365 crore and an offer-for-sale worth up to ₹380 crore by promoters and promoter group entities. The company filed its draft red herring prospectus in July.

The company proposes to utilise the net proceeds of the fresh issue for setting up a manufacturing facility for writing instruments at Valsad district, in Gujarat; funding its capital expenditure and its arm, Flair Writing Equipments; funding its working capital requirements and its subsidiaries, FWEPL and Flair Cyrosil Industries; payment of the loan; and general corporate purposes.

The company, which owns the over-45-year-old flagship brand “Flair”, is among the top three players in the overall writing instrument industry, with a market share of about 9 per cent as of March.

It manufactures and distributes writing instruments, including pens, stationery products, and calculators, and has also diversified into manufacturing houseware products and steel bottles.

Nuvama Wealth Management (formerly known as Edelweiss Securities Ltd.) and Axis Capital are the book-running lead managers for the IPO issue.