Flair Writing Industries Limited

About Flair Writing Industries Limited  Incorporated in 1986, Flair Writing Industries is the largest player in the pens segment, and among the top three players in the overall writing instruments industry in India. It enjoys a market share of approximately 9% in the overall writing and creative instruments industry, as of FY23.  It sells its products under different brand names such as Flair, Hauser, Pierre Cardin and ZOOX. Its product portfolio includes a variety of pens and stationery products like mechanical pencils, highlighters, gel crayons; calculators and a range of ‘Flair Creative’ products such as water colours, crayons, sketch pens, erasers and more. As of 31 March 2023, it offered 699 different products.  It also manufactures casseroles, bottles, storage containers, serving solutions, cleaning solutions, basket and paper bins through its subsidiary, FWEPL and steel bottles through another subsidiary - FCIPL.  These products are manufactured in 11 manufacturing facilities located in Valsad, Gujarat; Naigaon, Maharashtra; Daman, Union Territory of Dadra and Nagar Haveli and Daman and Diu; and Dehradun, Uttarakhand.  These products are then distributed through its nationwide distribution network of 131 super-stockists, 7,700 distributors/dealers and approximately 3,15,000 wholesalers/retailers in India. This distribution network is supported by 900 sales and marketing employees. It has a retail distributor presence in 2,387 cities, towns and villages in India, as of 31 March 2023. At the same time, it had an additional network of 54 international distributors, expanding its reach to 97 countries.  In FY23, the company sold 130 crore units of pens including domestic and international sales. It also saw a CAGR rise of 46% in its revenue from operations and 408% in its profit between FY21 and FY23.  Moreover, the key seven organised players in the writing and creative instruments industry in India are poised to experience significantly faster growth when compared to the unorganised players at a CAGR of 7.7%-8.4% between FY23 and FY28. All of this could be beneficial for the company.  And now, Flair Writing Industries is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to set up a new manufacturing facility in Gujarat, repay loans, fund capital expenditure and working capital requirements, and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Flair Writing Industries Limited IPO:     Company Name  Flair Writing Industries Limited Limited   Company Type  Private    Company Established On  1986   Flair Writing Industries Limited IPO Opening Date  22 November 2023    Flair Writing Industries Limited IPO Closing Date  24 November 2023   Flair Writing Industries Limited IPO Allotment Status  29 November 2023    Credit of Shares to the Demat Account  30 November, 2023   Flair Writing Industries Limited IPO Listing Date  1 December 2023    Flair Writing Industries Limited IPO Face Value  ₹1 per share   Flair Writing Industries Limited IPO Lot Size  49 shares    Flair Writing Industries Limited IPO Issue Size  Approx ₹593 crore   Flair Writing Industries Limited IPO to be Listed on  BSE, NSE    Flair Writing Industries Limited IPO Price band  ₹288 – ₹304 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 297 crore  ₹ 577 crore  ₹ 942 crore    Net Profit  ₹ 0.98 crore  ₹ 55.1 crore  ₹ 118 crore              Here’s a quick look at Flair Writing Industries Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   The largest player in the pens writing instruments segment in India and among the top two organised players which have seen faster growth in revenue as compared to overall writing and creative instrument industry between FY17 and FY23.  Diversified range of products across various price points from ₹5 to ₹3,000 catering to a wide spectrum of consumers.  Manufacturing at a large scale and innovation capabilities allows it to introduce new products and satisfy changing customer preferences.  The largest pan-India distributor/dealer and wholesale/retailer network compared to other key organised players in the industry such as DOMS, Camlin, Linc and Luxor.  Established long-term relationships with international companies for which it manufactures and distributes or is a contract manufacturer.   Risks and threats   Derives a significant portion of its revenue from sale of products under the ‘Flair’ brand, representing 50% of the total revenue from operations in FY23.  The business and operations were adversely affected by the COVID-19 pandemic.  Operates in a competitive business environment and faces competition from BIC Cello, Camlin, DOMS, Hindustan Pencils, Linc, Luxor and Reynolds.  Significant working capital requirements  Faces risks related to the geographic concentration of its exports and international market conditions as it derived 61% of its revenue from exports to the US, UAE, Yemen, Colombia and Japan in FY23.  Exposed to risks associated with foreign exchange.            Flair Writing Industries Limited IPO details  |Flair Writing Industries Limited IPO date  According to the offer document filed by the company with the SEBI, the Flair Writing Industries IPO’s opening date – in other words, the Flair Writing Industries IPO launch date – will be 22 November 2023. The Flair Writing Industries IPO closing date is 24th November 2023. After this, investors will be updated about the allotment status on 30 November 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 4 December 2023. The Flair Writing Industries IPO listing date is 5 December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Flair Writing Industries Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Flair Writing Industries IPO price band has been set between ₹288 and ₹304 per share. Interested investors can choose a price within this band to apply for the IPO.  The Flair Writing Industries IPO listing price will be determined on 5 December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Flair Writing Industries Limited IPO Lot size  The Flair Writing Industries IPO details have been declared. The Flair Writing Industries IPO lot size is set at 49 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Flair Writing Industries IPO issue size is approx ₹593 crore.           How to pre-apply for the Flair Writing Industries Limited IPO?  You can pre-apply for the Flair Writing Industries Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Flair Writing Industries Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Flair Writing Industries Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Flair Writing Industries Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Flair Writing Industries Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Flair Writing Industries Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Flair Writing Industries LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Flair Writing Industries Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Flair Writing Industries Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Flair Writing Industries Limited IPO  To apply for the Flair Writing Industries Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Flair Writing Industries Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Flair Writing Industries Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.