Flair Writing Share Price Live Updates: Flair shares finished their first day of trade at ₹450.90 apiece, a 48% premium compared to the issue price of ₹304 on NSE.
Flair share price made a blockbuster debut on the bourses today. On the NSE, Flair Writing share price opened at ₹501 per share, 64.8% higher than the issue price of ₹304, and on the BSE, Flair Writing shares listed at ₹503 apiece. However, post a bumper listing Flair share price were locked in 10% lower circuit.
The fact that Flair share price dropped soon after it listed was not good news, according to analysts. It will negatively impact the stock's standing among investors. As soon as the stock opened for trading, allottees who were still holding shares in the scrip were advised to book a profit and sell.
Flair Writing IPO opened for subscription on Wednesday, November 22, and closed on Friday, November 24. Flair Writing IPO got an overall positive response and was subscribed to more than 46 times.
On day 3, Flair Writing IPO subscription status was 46.68 times. Flair IPO's retail investors portion was subscribed 13.01 times, NII portion was subscribed 33.37 times, and Qualified Institutional Buyers (QIB) portion is booked 115.60 times, at as per data available on BSE. On day 2, the issue was subscribed 6.12 times, and 2.18 times on day 1.
Flair Writing Industries Limited IPO price band was set in the range of ₹288 to ₹304 per equity share with a face value of ₹5. Flair IPO lot size was 49 equity shares, and in multiples of 49 equity shares thereafter.
Flair Share Price Live : Flair shares end at ₹450.90 apiece on NSE
Flair share price finished its first day of trade at ₹450.90 apiece on NSE, with a 48.3% premium compared to the issue price of ₹304. On BSE, Flair shares closed at ₹452.70 per share, a premium of 49% from the issue price.
Flair Share Price Live : Vinit Bolinjkar, Head of Research, Ventura Securities shares his views on Flair IPO
According to Bolinjkar, the oversubscription of the IPO by 3.6 times reflects significant investor interest in Flair Writing Industries and its promising growth outlook. The company has established a solid track record of financial stability and expansion, offering a diverse range of writing instruments and stationery products. The strategic expansion into housewares, steel bottles, and appliances created fresh growth opportunities, attracting investors eager to participate in these burgeoning markets.
Additionally, the robust performance of its peer, Cello, with impressive financial results, likely provided an additional boost. The overall positive market sentiment, buoyed by expectations of economic recovery and government support for the writing instruments and stationery sector, contributed to the successful listing of Flair's IPO.
Flair Share Price Live : Here are some key risks highlighted in Flair IPO's RHP
The company's operations, prospects, business, and financial results could all suffer materially if it is unable to carry out any further plans for capacity expansion.
The company has not placed any orders for machinery worth ₹75.02 crore, which is roughly 100% of the total amount of machinery that will be bought with the net proceeds.
The company's sales of goods under the "Flair," "Hauser," and "Pierre Cardin" brands account for a sizeable amount of its revenue; therefore, any damage to these brands' reputations could have a negative impact on the company's operations, cash flows, and overall financial situation.
Flair Share Price Live : Flair Writing IPO valuations
Brokerage firm BP Equities stated that the Flair IPO was a compelling offer, especially in light of the 12.66 EPS and 24.01x P/E ratio. The brokerage stated that when consistent profit growth is assumed, along with the brand's inherent value and the premium valuation of the FMCG industry, the valuation becomes compelling.
Brokerage house Anand Rathi claimed that at the upper price range, the company was valued at a P/E of 27.1x, with a market capitalisation of ₹32,040 million after equity shares were issued and a 31.1% return on net worth. The brokerage felt that the company was reasonably priced in terms of valuation.
Flair Share Price Live : Here's what Arun Kejriwal, Founder at Kejriwal Research and Investment Services says on sharp sale of shares post listing
Flair shares witnessed around 33 lakh trade volume during the pre-listing session, whereas its trade volume post-listing touched around 90 lakhs within a few minutes of trading. This means the writing of the Flair shares at Dalal Street was manipulated, which led to sharp selling post-listing.
The primary market expert went on to add that Flair share price touching lower circuit after a stellar opening on Dalal Steet doesn't augur well for the company in the long term. It is going to put doubt among genuine retail and other investors. Kejriwal advised allottees to exit the stock immediately once the stock starts trading on Indian bourses.
Flair Share Price Live : Lead Manager and Registrar of Flair IPO
Flair Writing IPO's book running lead managers were Nuvama Wealth Management Limited and Axis Capital Limited, and the issue's registrar was Link Intime India Private Ltd.
Flair Share Price Live : Flair share price locked in 10% lower circuit. Should you buy, sell or hold?
Stock market analysts say it's not good news for Flair that the share price fell shortly after it was listed. It will hurt the stock's reputation with trustworthy retail and other investors. Allottees who were still holding shares in the scrip were advised to book a profit and sell as soon as the stock opened for trading.
Flair Share Price Live : Stock check at 13:01 IST
On the NSE, Flair share price is currently 10 percent lower at ₹450.90 a share.
Flair Share Price Live : Flair Writing IPO anchor investor details
Flair Writing Industries Ltd has ₹177 crore from 23 anchor investors by allocating 58,51,972 equity shares at the price band of ₹304 (including share premium of ₹299 per equity share).
“Out of the total allocation 58,51,972 Equity Shares to the Anchor Investors, 27,70,264 Equity Shares (i.e. 47.34% of the total allocation to Anchor Investors) were allocated to 6 domestic mutual fund have applied through a total of 14 schemes," the company informed the exchange houses.
Flair Share Price Live : Flair Writing Industries details
According to CRISIL, Flair Writing is one of the top three companies in the Indian writing instrument market, with revenue of ₹915.55 crore in the financial year 2023. As of March 31, 2023, the company held a 9% market share in the country's writing and creative instruments market. The company is also one of the top two organised players, according to CRISIL, whose revenue growth has outpaced the growth rate of the writing and creative instrument industries as a whole.
For more than 45 years, the company's main brand, "Flair," has had a market presence. With a wide range of products at different price points, Flair Writing serves a diverse clientele that includes offices, professionals, and students.
Between the financial year ending on March 31, 2023, and March 31, 2022, Flair Writing Industries Limited saw an increase in revenue of 62.39% and profit after tax (PAT) of 114.14%, as per reports.
Flair Share Price Live : Here's what Mahesh M. Ojha AVP – Research & Business Development of Hensex Securities comments on listing
The stationery manufacturing and distribution company Flair Writing Industries made a stellar debut, delivering 60% returns to the investors. The company holds approximately 9% of the writing market in India. The company, with its diversified range of products across various price points catering to a wide spectrum of consumers, largest pan-India distributor network and wholesale/retailer network, strong presence in targeted markets abroad, high-quality manufacturing at a large scale coupled with innovation capabilities, shows good growth prospects in the near future. We suggest investors book at least 50% of the listing day itself; the rest can be held for long-term investment.
Flair Share Price Live : Post listing views by Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities
Given the positive secondary market environment and ample liquidity, Flair Writing had a solid listing that was above our expectations, as it had received higher than expected subscription demand, especially from QIB investors. 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 future growth.
Hence, we recommend conservative allotted short-term investors to book profits, while long-term investors can hold on considering healthy growth in the writing and creative instruments industry in India and strategic partnerships with global brands.
Flair Writing Share Price live : Post listing views by Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Flair Writing Industries Ltd made a strong debut on the stock markets, listing at ₹503 per share, a premium of 65.4% over its IPO price of ₹304. The listing was even above expectations, given the strong fundamentals of the company and the positive investor sentiment surrounding the IPO.
Flair Writing is a leading manufacturer of writing instruments in India with a well-diversified product portfolio and a strong brand reputation. The company has a proven track record of growth and profitability. The IPO was oversubscribed 49.28 times, indicating strong investor interest.
Overall, Flair Writing Industries Ltd is a fundamentally sound company with a strong growth outlook.
Flair Writing Share Price live : Flair share price trades in red post bumper listing
After a bumper listing with a premium of 65% at ₹501 apiece compared to the issue price of ₹304 apiece, Flair shares are currently trading with a cut of 10% at ₹450.90 apiece on the NSE.
Flair Writing Share Price live : Flair share price makes blockbuster debut on the bourses today
Flair Writing share price makes a strong debut on the bourses today. On NSE, Flair Writing share price today listed at ₹501 per share, 64.8% higher than the issue price of ₹304, and on the BSE, Flair Writing shares listed at ₹503 apiece.
Flair Writing Share Price live : Flair Writing IPO issue details
Flair Writing IPO consists of a fresh issue of shares of up to ₹292 crore and an offer for sale (OFS) of equity shares with a face value of ₹2 each by a promoter and others aggregating up to ₹301 crore. Flair Writing IPO size is ₹593 crore.
The company would utilise the net proceeds to establish the new Valsad Unit in Gujarat's District Valsad; fund working capital needs for the company and its subsidiaries, Flair Writing Equipments Private Limited (FWEPL); finance capital expenditures for the company and its subsidiaries, FWEPL and Flair Cyrosil Industries Private Limited (FCIPL); fund the repayment or prepayment, in full or in part, of certain borrowings taken out by the company and its subsidiaries, FWEPL and FCIPL; and serve general corporate purposes.
The company's promoters are Rajesh Khubilal Rathod, Mohit Khubilal Rathod, Sumit Rathod, Vimalchand Jugraj Rathod, and Khubilal Jugraj Rathod.
Flair Writing Share Price live : Flair Writing IPO subscription details
Flair Writing IPO subscription status was 46.68 times on day 3. Flair IPO's retail investors portion was subscribed to 13.01 times, the NII portion was subscribed to 33.37 times, and the Qualified Institutional Buyers (QIB) portion was booked 115.60 times, as per the data available on BSE.
Flair IPO received bids for 67,28,40,364 shares against 1,44,13,188 shares on offer, according to data from the BSE.
Flair Writing IPO subscription status was 2.18 times on day 1, and the issue was subscribed 6.12 times on day 2.
Flair Writing Industries Limited IPO reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and not less than 35% of the offer is reserved for retail investors.
Flair Writing Share Price live : Flair Writing IPO listed peers
Flair Writing Industries's listed industry peers are Linc Ltd (with a P/E ratio of 33.50), Kokuyo Camlin Ltd (with a P/E ratio of 56.82), and Cello World Ltd, as per the Red-herring prospectus (RHP).
Flair Writing Share Price live : Flair Writing IPO GMP ahead of listing
Flair Writing IPO GMP today or grey market premium is +150 which means shares are trading at their premium of ₹150 in the grey market, according to investorgain.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing of Flair share price was indicated at ₹454 apiece, which is 49.34% higher than the IPO price of ₹304.
Based on last 16 sessions grey market activities, today IPO GMP points upward and expects a strong listing. The lowest GMP is ₹0, while the highest GMP is ₹150, as per analysts of investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Flair Writing Share Price live : Flair Writing IPO to list on the bourses today
Flair Writing shares will list on the NSE and BSE today at 10:00 IST. Flair Writing IPO, which opened for subscription on Wednesday, November 22, and closed on Friday, November 24, overall received positive response and subscribed more than 46 times. Flair Writing's IPO GMP indicates an upward trend and a strong listing.
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 decision.
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