Flair Writing IPO: Here’s what GMP signals ahead of the issue opening

Flair Writing IPO: Writing instruments manufacturer Flair Writing Industries is set to launch its initial public offering (IPO) on Wednesday, November 22. Flair is among the top-3 players in the overall writing instruments industry with a revenue of ₹915.55 crore in FY23 and occupy a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 31, 2023.

Ahead of the opening of Flair Writing IPO, let us take a look at what the grey market premium (GMP) indicates:

Flair Writing IPO GMP Today:

Flair Writing IPO GMP today, or grey market premium today, is ₹60 per share, as per market observers. This indicates that the equity shares of Flair Writing are trading higher by ₹60 in the grey market than their issue price of ₹304 apiece. This shows Flair Writing IPO GMP today is 19.74%.

Considering the GMP today of ₹60 and the issue price of ₹304, the estimated listing price of Flair Writing shares would be ₹364 apiece ( ₹304 + ₹60). Flair Writing shares will be listed on BSE and NSE.

Read here: Flair Writing Industries Limited IPO to open for subscription on November 22, sets price band at ₹288-304 apiece

Flair Writing IPO Details

Flair Writing IPO opens for subscription on November 22 and closes on November 24. The IPO allotment is expected to be finalized on November 30 and the tentative listing date is fixed on December 5.

Flair Writing IPO price band has been fixed at ₹288 to ₹304 per share. The company plans to raise ₹593.00 crore from the maiden public offer that comprises a fresh issue of 96.52 lakh equity shares aggregating to ₹292.00 crore and an offer for sale (OFS) of 99.01 lakh shares aggregating to ₹301.00 crore.

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The IPO lot size is 49 shares and the minimum investment amount required by retail investors is ₹14,896. 

Nuvama Wealth Management and Axis Capital are the book running lead managers of the Flair Writing IPO, while Link Intime India Private Ltd is the IPO registrar.

Flair Writing IPO Review

Flair Writing Industries has established a consistent track record of strong and consistent financial performance, with strong improvement in margins as FY21 was a washout year for writing instruments due to lockdown in schools and offices.

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Analysts at Reliance Securities believe the company’s revenues and net profit both have improved over the past few years and improvement in margins would continue with new products in various categories and individual strong brands at various price points pushing the growth trajectory in the coming years. 

“Flair Writing being one of the leaders in writing instruments both in domestic and exports market, industry leading profitability, experienced promoters by a strong professional team, faster growth of 14% CAGR compared to 5.5% for industry for FY17-23, strong dominance in its categories, debt free are the key investment positives,” said Reliance Securities.

The brokerage has recommended a ‘Subscribe’ to the issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.