Flair Writing Industries IPO: Stock lists at 66% premium over issue price

Flair Writing Industries made an impressive market debut, listing at a premium of 66 percent over the issue price. The stock commenced trading at Rs 490 on the NSE and Rs 505 on the BSE. It surpassed the issue price of Rs 304. The optimistic market sentiment and the oversubscription of the IPO were key drivers behind this positive performance.

As a key player in the writing instruments and stationery sector, Flair Writing garnered higher-than-expected subscription demand. This was particularly from Qualified Institutional Buyers (QIB) who bid aggressively, oversubscribing by 115.6 times. The overall public issue of Rs 593 crore witnessed a robust subscription of 46.68 times during February 22-24.

High net worth individuals subscribed 33.37 times their allotted quota. The retail investor portion experienced an oversubscription of 13.01 times.

Flair demonstrated substantial financial growth, with a profit CAGR of 993 percent. Its revenue CAGR was of 78 percent from FY21 to FY23. Additionally, EBITDA (earnings before interest, tax, depreciation, and amortization) experienced a CAGR of over 180 percent.

Flair Writing will be spending net fresh proceeds for setting up a new manufacturing facility for writing instruments in Valsad, Gujarat at a cost of Rs 95.6 crore.

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