Flair Writing shares to debut on Friday. What GMP signals ahead of listing

The shares of Flair Writing will debut on the exchanges on Friday. Ahead of the listing, the company's shares are commanding a premium of Rs 109 in the unlisted market.

Given the upper price band of Rs 304, the stock is expected to list at a premium of 36%.

However, it is important to note that grey market premiums are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.


Analysts also expect a listing premium of over 25% for the stock, given the optimistic sentiments around the IPO market.

“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 the future growth," said Prashanth Tapse of Mehta Equities.
The IPO of Flair Writing received a strong response from investors with nearly 46.6 times subscription at close.

Flair Writing is among the top three players in the overall writing instruments industry and occupies a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 2023. Its flagship brand “Flair” has enjoyed a market presence of over 45 years.

The company makes and distributes writing instruments, including pens, stationery products and calculators and has also diversified into manufacturing houseware products and steel bottles.

It has reported the highest operating and net income margins among peers at 17.8% and 9.6%, respectively in FY22. It occupies a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 2023.

Net proceeds of the fresh issue will be used towards setting up a new manufacturing facility for writing instruments in Valsad district, to fund capital expenditure, working capital requirements and other general corporate purposes.

Nuvama Wealth Management (formerly known as Edelweiss Securities Limited) and Axis Capital acted as the book running lead managers to the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)