Flair Writing IPO: Unveiling Explosive Growth! 9% Market Share & Surging Profits

Unveiling the Essence of Flair Writing IPO

Today, we embark on an exploration of the intricacies surrounding Flair Writing IPO. As a prominent player in the writing instruments industry, the company stands tall among the top three entities in its sector. In this video, we shall delve into the company’s overview, coupled with a synopsis of the IPO.

Critical Decision-Making: A Deep Dive into Flair Writing IPO Details

For those seeking a comprehensive understanding of this IPO to make well-informed decisions, it is imperative to watch the entire video. The IPO is slated to commence on November 22, with a closing date scheduled for November 24. Valued at a total of 593 crores, the composition comprises a fresh issue of 292 crores and an offer for sale (OFS) of 301 crores. The lot size is set at 49 shares per lot, with a share price ranging from 288 to 304.

Allotment of shares is scheduled for November 30, and the IPO is expected to be listed on December 5. Leading the book running are Navama Wealth Management Limited and Axis Capital Limited.

Financial Strategies: Understanding Flair Writing Industries’ Fiscal Landscape

Diving into the specifics of the IPO, the proceeds are earmarked for various purposes, including the establishment of a new manufacturing unit in Gujarat, capital expenditure for the subsidiary EDB EPE’s manufacturing unit, and fulfilling the capital requirements for subsidiaries F Double EP and FCAI PEL. Additionally, a portion of the funds will be allocated for debt repayment and general corporate purposes.

Legacy of Excellence: The Journey of Flair Writing IPO

Established in 1976, Flair Writing Industries Limited has solidified its position as one of the top three players in the writing and creative instruments industry. Boasting a market share of approximately 9% as of March 2023, the company has experienced a remarkable growth of 14% between FVA 2017 and FVA 2023, surpassing the industry average of 5.5%.

Resilience Amidst Challenges: Navigating the Impact of Global Events

Analyzing the industry dynamics, the closures in 2021 due to the pandemic significantly impacted the writing instruments industry. However, a resurgence was witnessed in FVA 2022, with a growth of 38.3%. The pen segment showcased the highest price growth between FVA 2021 and 2023. Forecasts indicate a potential CAGR growth of 7.7 to 8.4 from 2023 to FVA 2028.

Financial Acumen: A Glimpse into Flair Writing Industries’ Fiscal Health

Turning our attention to the financials, the revenue from operations surged to 942.6 crores for F22 from 77.30 crores in F21, showcasing a staggering YoY growth of 1217.56%. EBITDA witnessed a growth of 55.1%, amounting to 97.9 crores in F22 from 63.26 crores in F21, with an EBITDA margin of 10.41% in F22 and 77.56% in F21.

The total assets for F23 stood at 84.6 crores, compared to 57.4 crores in F22 and 8.66 crores in F21. Share capital for F22 was 46.69 crores against 23.35 crores in F21.

Liabilities Unveiled: A Peek into the Financial Obligations

Delving into the liabilities, total liabilities for F23 amounted to 28.9 crores, in stark contrast to 0.51 crores in F22 and 21.96 crores in F21.

Balancing Strengths and Risks: An In-depth Analysis

In conclusion, a judicious consideration of the company’s strengths and associated risks is imperative. While the company’s product range is diverse, encompassing the largest pan-India distributor-dealer network and wholesale-retailer network, potential shifts in consumer preferences and rising raw material costs present inherent challenges. Notably, a substantial portion of their revenue emanates from Flair House and Pierre Cardin.

Stay tuned for further updates as we unveil the authentic facets of this IPO journey. If you are considering applying for this IPO, we invite you to share your thoughts in the comment section.