Flair Writing Shares Surge 49% on Debut
Dec 01, 2023 16:55
Flair Writing Industries shares closed 48.91% higher than its IPO price on its stock market debut. The IPO was oversubscribed by 46.68 times.
New Delhi, Dec 1 (PTI) Shares of pen maker Flair Writing Industries made a stunning debut on Friday and ended the day with a premium of nearly 49 per cent against the issue price of Rs 304.
The stock made its debut at Rs 503, registering a jump of 65.45 per cent, on the BSE. During the day, it rallied 69 per cent to Rs 514. Shares of the company ended at Rs 452.70 apiece, registering a gain of 48.91 per cent.
On the NSE, it listed at Rs 501, up 64.80 per cent. The stock ended at Rs 450.90 per piece, rallying 48.32 per cent.
The company's market valuation stood at Rs 4,771.25 crore.
In volume terms, 6.98 lakh shares of the company were traded on the BSE and over 1.27 crore shares on the NSE during the day.
The 30-share BSE benchmark jumped 492.75 points or 0.74 per cent to settle at 67,481.19. The Nifty climbed 134.75 points or 0.67 per cent to settle at an all-time closing high of 20,267.90.
The Initial Public Offer (IPO) of Flair Writing Industries was subscribed 46.68 times on the last day of subscription on November 24.
Flair Writing's IPO had a fresh issue of equity shares aggregating up to Rs 292 crore and an Offer for Sale (OFS) of equity shares worth up to Rs 301 crore by promoters and promoter group entities.
The issue had a price band of Rs 288-304 per share.
Proceeds from the fresh issue will be used for setting up a manufacturing facility for writing instruments at Valsad district in Gujarat, funding the company's capital expenditure and subsidiary Flair Writing Equipments Pvt Ltd (FWEPL).
Besides, the proceeds will be used to support the working capital requirements of the company and its subsidiaries FWEPL and Flair Cyrosil Industries.
Also, the money will be used for payment of loan and general corporate purposes.
The company, which owns the over 45-year-old flagship brand 'Flair', is among the top three players in the writing instrument industry, with a market share of about 9 per cent as of March 2023.
It manufactures and distributes writing instruments, including pens, stationery products, and calculators, and has also diversified into manufacturing houseware products and steel bottles.
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