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The three-day initial public offering of Flair Writing Industries opens today and closes on Friday. The Rs 593-crore IPO comes with a price band of Rs 288-304 a share and a market lot of 49 shares.
Issue details, quota
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 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 Non Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for Retail Investors.
Anchor 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 at Rs 304 per share to anchor investors, including 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.
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Utility of funds
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 via fresh issue proceeds, and the remaining funds will be used for general corporate purposes.
Pre-IPO placement
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.
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