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Shares of Flair Writing Industries will be listed on the exchanges on Friday. The issue was one of the star attractions that subscribed 46.6 times last week. The company had fixed the IPO price at Rs 304, at the upper end of the price band of Rs 288-304. The company raised Rs 593 crore - consisting of a fresh issue worth Rs 292 crore and an offer-for-sale (OFS) of Rs 301 crore worth of shares by the Rathod family.
The IPO was subscribed 13 times in the retail category and 33.37 times in Non-Institutional Investors’ portion. QIB portion was subscribed whopping 115 times.
According to market buzz, Flair Writing shares are expected to list with a premium of 30-35 per cent.
Ahead of the issue, the Mumbai-based writing instruments manufacturing company mobilised Rs 177.9 crore from anchor investors who 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 to set up a new manufacturing facility for writing instruments in Valsad for Rs 55.99 crore. Further, it will spend Rs 86.75 crore on capital expenditures and Rs 77 crore on working capital requirements. The company will repay the debt amounting to Rs 43 crore via fresh issue proceeds, and the remaining funds will be used for general corporate purposes.
The company had also raised Rs 73 crore in a pre-IPO placement of 24.01 lakh equity shares for 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.
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