Flair Writing Industries IPO – Review, Allotment, Subscription, GMP & DRHP

Flair Writing Industries Limited are a leading manufacturer of writing instruments in India with a focus on pens, which according to CRISIL contributes 70-75% of the domestic writing instruments industry in India in value terms.Flair Writing Industries IPO comprises  of [●] Equity Shares aggregating up to Rs 4,500 million where price is yet to be disclosed.

Let’s have a detailed review of the company and analytics of the Flair Writing Industries IPO release date, IPO offer price, subscription, Flair Writing Industries IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Flair Writing Industries IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 8.5/10
Industry Ranking 7.8/10
Company Background 7.9/10
Company Reputation 7.9/10
Competitive Edge 7.7/10
Financial Statements 7.8/10
Popularity Index 8.4/10
Promoters Reputation 7.7/10
Retail Appetite 7.9/10
Top Brokers Review 7.9/10
Overall Ratings 8.1/10
Star Ratings ★★★★☆

Summary of Flair Writing Industries IPO

Flair Writing Industries IPOFlair Writing Industries Limited are a leading manufacturer of writing instruments in India with a focus on pens, which according to CRISIL contributes 70-75% of the domestic writing instruments industry in India in value terms. Their flagship brand “Flair” was introduced in 1976. The Issue comprises up to [●] Equity Shares aggregating upto Rs 4,500 million where price is yet to be disclosed.

From FY 2014-15 to FY 2016-2017, as per the Restated Financial Statements,

  • For the Financial Years 2016, 2017 and 2018, the total income was Rs 3,910.52 million, Rs 4,264.39 million and Rs 5,806.73 million, respectively  Total income and profit after tax grew at a CAGR of 21.03% and 15.26%, respectively, between the Financial Years 2014 and 2018.
  • As of March 31, 2018, the Company’s net worth was Rs 1,537.49 million as per the Restated Standalone Financial Information and Rs 1,537.45 million as per the Restated Consolidated Financial Information.
  • The profit after tax For the Financial Years 2016, 2017 and 2018 was Rs 526.83 million, Rs 502.42 million and Rs 492.61 million, respectively.

The Promoters of this company are Mr. Khubilal Jugraj Rathod and Mr. Vimalchand Jugraj Rathod. The lead manager to the issue are Axis Capital Limited and Edelweiss Financial Services Limited and the Registrar to this issue is Link Intime India Private Limited .


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Flair Writing Industries IPO Date

The opening and the closing date of Flair Writing Industries Limited IPO is not known yet.


Flair Writing Industries IPO Subscription

Day / Date QIB NII RII Total Subscription
Day 1 
Day 2
Day 3
Day 4
Day 5
Shares Offered or Net Issue

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Flair Writing Industries IPO Allotment Status

Here, you can find the Allotment Status of this IPO.


Flair Writing Industries IPO Price Band

The face value of each share is Rs 10, but the price band of the IPO is not yet disclosed. 


Flair Writing Industries IPO Equity Share Offering

Up to [●] Equity Shares aggregating up to Rs 4,500 million where price is yet to be disclosed.


Flair Writing Industries Limited – Company Overview

Flair Writing Industries Limited are a leading manufacturer of writing instruments in India with a focus on pens, which according to CRISIL contributes 70-75% of the domestic writing instruments industry in India in value terms. Their flagship brand “Flair” was introduced in 1976. Their products are sold under the principal brands “Flair”, “Hauser” and “Pierre Cardin”, as well as the other brands “Rudi Kellner” and “Landmark”.

They contract manufacture pen products on an OEM basis for various international companies. They also provide customized corporate gifting products to the corporate customers. The brands “Flair” and “Hauser” offer mass-market and premium pen and stationery products, and the“Pierre Cardin” brand emphasizes premium pen and stationery products. They have an extensive product range, including pen products (ball pens, fountain pens, gel pens, roller pens, plastic pens and metal pens), which is the largest category in terms of number of products offered, stationery (mechanical pencils, highlighters, correction pens, markers and gel crayons) and calculators. 

They manufacture pens and other products from six manufacturing plants in Naigaon (near Mumbai), Maharashtra; Daman in the Union Territory of Daman and Diu; and Dehradun, Uttarakhand.

The Company is promoted by Mr. Khubilal Jugraj Rathod and Mr. Vimalchand Jugraj Rathod and is the guiding force behind the growth and strategic decisions of the Company.

Competitive Strengths of Flair Writing Industries Limited:

  • Recognized brands for writing instruments across different consumer segments.
  • Wide range of writing instruments across price points.
  • Wide sales and distribution network in India and presence in targeted markets abroad.
  • Preferred partner for international brands in the writing instruments industry.
  • Large capacity and quality manufacturing capabilities.
  • Experienced Promoters and senior management team.

Business strategies of Flair Writing Industries Limited:

  • Increase emphasis on premium segment
  • Continue to be a leading manufacturer of writing instruments, increase production capacity and enhance
    capacity utilization.
  • Strategically expand exports
  • Deepen the sales and distribution network
  • Diversification of the product range

Flair Writing Industries Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

On the basis of Standalone statement:-

Amount (in INR & Million)
31-Mar-18 31-Mar-17
Total Assets 4,097.18 1,921.99
Total Revenue 5,121.44 1,733.57
Total Expense 4,431.97 1,356.07
Profit After Tax 499.00 247.08

Earnings per Equity Share (in Millions)

31-Mar-18 31-Mar-17
Basic & Diluted 23.06 13.48

From the above statements, one could find that the Flair Writing Industries Limited may perform well.


Flair Writing Industries IPO – Promoters

The Promoters of this company are:

  1. Khubilal Jugraj Rathod
  2. Vimalchand Jugraj Rathod

List of Related Parties (Key Managerial Personnel)

  • Khubilal Jugraj Rathod
  • Vimalchand Jugraj Rathod
  • Mohit Rathod
  • Rajesh Rathod
  • Sumit Rathod
  • Mayur Gala

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Flair Writing Industries IPO Offer Details or Issue Details

Offer Up to [●] Equity Shares aggregating up to Rs 4,500 million
Fresh Issue Up to [●] Equity Shares aggregating up to Rs 3,300 million
Offer for Sale Up to [●] Equity Shares aggregating up to Rs 1,200 million
Of which:
QIB Category Not more than [●] Equity Shares
Of which:
 Anchor Investor Portion Up to [●] Equity Shares
Balance available for allocation to QIBs other than Anchor Investors (assuming Anchor Investor Portion is fully subscribed) [●] Equity Shares
Of which:
– Available for allocation to Mutual Funds only (5% of the QIB Category (excluding the Anchor Investor Portion)) Up to [●] Equity Shares
– Balance of QIB Category for all QIBs including Mutual Funds [●] Equity Shares
Non-Institutional Category Not less than [●] Equity Shares
Retail Category Not less than [●] Equity Shares
Equity Shares outstanding prior to the offer 23,347,200 Equity Shares
Equity Shares outstanding after the Offer [●] Equity Shares

Flair Writing Industries IPO Issue Object

These are the IPO Issue Objects of the company-

  • Funding the Working Capital requirements of the Company.
  •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
  •  General Corporate Purposes.

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R R Industrial IPO Sorich Foils IPO 20 Microns IPO Shree Vasu Logistics IPO

Flair Writing Industries IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Recognized brands for writing instruments across different consumer segments.
  • Wide range of writing instruments across price points.
  • Wide sales and distribution network in India and presence in targeted markets abroad.
  • Preferred partner for international brands in the writing instruments industry.
  • Large capacity and quality manufacturing capabilities.
  • Experienced Promoters and senior management team.

The relevant quantitative factors are:

On the basis of Standalone statement:-

Basic & Diluted EPS RONW (%) NAV (Rs.)
31-Mar-17 13.48 139.90
31-Mar-18 23.06 35.93 65.85
  • Industry P/E Ratio:
Particulars P/E ratio
Average 98.88
Highest 118.57
Lowest 79.18
  • Competitive Peers:
Particulars Face Value (in Rs.) EPS     (In Rs.) P/E Ratio RONW (%)  NAV (In Rs.)
Linc Pen & Plastics Limited 10.00 5.30 79.18 6.49 81.68
Kokuyo Camlin Limited 1.00 0.98 118.57 4.12 23.76

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Flair Writing Industries IPO Lead Managers

Lead Managers
Axis Capital Limited

Edelweiss Financial Services Limited

 

Registrar to the Offer
Link Intime India Private Limited

C-101, 1st Floor, 247 Park, L.B.S. Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: +91 22 4918 6200, Fax: +91 22 4918 6195
E-mail:
Investor grievance e-mail:
Website: www.linkintime.co.in
Contact Person: Ms. Shanti Gopalkrishnan
SEBI Registration No.: INR000004058


Other Details:

  • Statutory Auditor –  M/s. Jeswani & Rathore, Chartered Accountants
  • Peer Review Auditor – M/s. Jeswani & Rathore, Chartered Accountants
  • Bankers to the Company – Citibank N.A

Flair Writing Industries IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
Angel Broking 7.5/10 7.4/10 8.5/10 8.1/10 7.1/10
Sharekhan 7.2/10 7.1/10 8.6/10 8.1/10 7.2/10
Kotak Securities 7.3/10 7.5/10 8.4/10 8.1/10 7.3/10
ICICI Direct 7.3/10 7.3/10 8.7/10 8.1/10 7.1/10
IIFL 7.5/10 7.2/10 8.8/10 8.0/10 7.1/10
Edelweiss 7.5/10 7.4/10 8.4/10 8.3/10 7.2/10
Zerodha 7.4/10 7.1/10 8.5/10 8.1/10 7.0/10
5Paisa 7.1/10 7.1/10 8.4/10 8.1/10 7.1/10
Karvy 7.4/10 7.3/10 8.2/10 8.1/10 7.1/10
Motilal Oswal 7.1/10 7.1/10 8.6/10 8.3/10 7.2/10

Flair Writing Industries IPO Grey Market Premium

The Flair Writing Industries IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Flair Writing Industries IPO News

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