Stellar Debut! Flair Writing shares list at 66% premium over issue price

Shares of Flair Writing debuted at a premium of 65.5% (up Rs 199) at Rs 503 per share on the BSE in Friday’s trade. Meanwhile, on NSE, the stock listed at Rs 501, up 64.8%, on NSE over the issue price of Rs 304.

Ahead of the listing, the company’s shares traded with a premium of Rs 104 in the grey market.

“We believe the healthy listing is justified on the back of high growth seen in the writing instruments and stationery segment, diversification into housewares, steel bottles and appliances and ongoing expansion plans to tap the future growth,” said Prashanth Tapse of Mehta Equities.

The IPO of Flair Writing received a strong response from investors with nearly 46.6 times subscription at close.

Flair Writing is among the top three players in the overall writing instruments industry and occupies a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 2023. Its flagship brand “Flair” has enjoyed a market presence of over 45 years.

The company makes and distributes writing instruments including pens, stationery products and calculators and has also diversified into manufacturing houseware products and steel bottles.
“Flair Writing’s products are widely recognized for their quality and brand reputation, earning it a loyal customer base spanning across India and international markets. It also maintains a robust distribution network, ensuring its products’ accessibility to consumers nationwide,” said Shivani Nayti, Head of Wealth, Swastika Investmart.It has reported the highest operating and net income margins among peers at 17.8% and 9.6%, respectively in FY22. It occupies a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 2023.

Net proceeds of the fresh issue will be used towards setting up a new manufacturing facility for writing instruments in Valsad district, funding capital expenditure, working capital requirements and other general corporate purposes.

Nuvama Wealth Management (formerly known as Edelweiss Securities Limited) and Axis Capital acted as the book-running lead managers to the issue.

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