Last Updated on October 5, 2023 by BFSLTeam BFSLTeam
Pen maker Flair Writing Industries Limited has filed preliminary papers with the market regulator SEBI to float its IPO this year. The company aims to raise funds worth Rs. 745 crore through an Initial Public Offering.
The IPO will consist of both a fresh issue of up to Rs. 365 crore and an OFS of up to Rs. 380 crore. Flair Writing Industries will use the proceeds to expand its operations in global markets and fuel its growth. The proceeds will also be used for establishing a new manufacturing facility and financing capital expenses.
Learn more about Flair Writing Industries IPO before you invest.
Table of Content
About Company
Flair Writing Industries is one of the most popular choices of brands for writing instruments. It is the largest player in the pens sector with revenue of Rs. 7,541.8 million in FY23. Flair is also among the top 3 players in the writing industry and has generated revenue worth Rs. 9,155.5 million in FY23.
Flair Writing Industries has a strong growth record and owns approximately 9% share of the overall writing industry. It has been in the market for over 45 years and its flagship brand “Flair” is one of the most preferred brands in India for writing instruments.
Flair Writing Industries offers a diverse range of products catering to various types of customers such as professionals, students, and offices. Their products include various stationary products, pens, and calculators.
The pen maker has managed to partner with several international brands due to its quality manufacture, retail, and distribution facilities. Its brands include “Flair” and the principal brands “Hauser” and “Pierre Cardin”. It has recently introduced another brand “ZOOX” that deals with premium and mid-premium instruments.
Also Read: How Can You Analyse An IPO?
Company Financials
The following table lays down some valuable financial information about Flair Writing Industries. Knowing these details will help potential investors make a wise decision:
| Parameters* as Per the Year Ending On | March 31 2023 | March 31 2022 | March 31 2021 |
| Total Assets | 6,841.83 | 5,574.93 | 4,806.64 |
| Total Liabilities | 2,489.54 | 2,405.14 | 2,190.62 |
| Total Expenses | 7,954.93 | 5,141.93 | 3,087.36 |
| Total Revenue | 9,542.91 | 5,876.42 | 3,108.73 |
| Profit After Tax | 1,181.00 | 551.51 | 9.89 |
| EBITDA | 1,835.12 | 975.68 | 229.97 |
| Earnings Per Share (EPS) (Basic and Diluted) | 12.66 | 5.91 | 0.11 |
*Values in millions except EPS
Strengths
Following are some of the reasons why Flair Writing Industries is one of the top players in the market:
- Flair is one of the largest names in the pens sector in India. It has reported revenue worth Rs. 7,541.8 million in FY23 from its pen segment alone. As its respective industry grew at a 5.5% CAGR between FY 2017 and 2023, Flair experienced a 14% CAGR growth during this time.
- Flair Writing Industries has the most expansive product portfolio in the creative instrument and writing industry in India. Strategically, the portfolio covers a wide range of price points and consumer types. As of March 31 2023, the company offered 699 types of products.
- The pen company has launched 151 pen products in the Financial Year 2023 spread across various price points.
- The company has 11 manufacturing plants as of March 31 2023. These plants are spread across Gujarat, Maharashtra, Uttarakhand, Daman & Diu, and Dadra & Nagar Haveli.
- The writing instrument manufacturer has a consistent track record of strong financial performance. It has demonstrated constant growth in its EBITDA, profit after tax, operational revenue, and earnings per share.
Risk Factors
Along with the strengths, the company has some risk factors. These factors have the potential to hamper the company’s performance and growth:
- Being in the creative and writing instruments industry, Flair Writing’s success entirely depends on its ability to respond and adapt to consumer needs. Hence, their inability to successfully implement their growth strategy and manage the same can lead to loss on financial and other fronts.
- The company earns a significant amount of their revenue from the brands under the names of Flair, Hauser, and Pierre Cardin. Any harm to their name and reputation can result in a drop in their revenue.
- The writing instruments industry happens to be highly competitive and includes established brands like Reynolds, Linc, Camlin, BIC Cello and more. If these competitors are able to offer more effective or less costly products, it could render Flair’s products obsolete.
Also Read: Risk of investing in IPO
Summary
Flair Writing Industries IPO plans to expand its pool of investors and increase brand awareness through its IPO. The company’s global market is estimated to be worth USD 20 billion and the Indian market is worth Rs. 5,000 crore.
To tap into the potential of the market, the pen maker is expected to expand its product portfolio to include markers and fountain pens. Flair Writing Industries IPO date is yet to be announced but is expected to be launched in the coming weeks.
Frequently Asked Questions
Axis Capital Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the book-running lead managers appointed for the Flair Writing Industries IPO.
Flair Writing will use the proceeds from its IPO to set up a new manufacturing facility, expand its distribution network, and finance capital expenditure.
Flair Writing will use the proceeds from its IPO to set up a new manufacturing facility, expand its distribution network, and finance capital expenditure.
Flair Writing Industries has generated revenue worth Rs. 754 crore from the pens sector alone in India in FY23.
Bollywood superstar Hrithik Roshan has been the brand ambassador of Flair Writing Industries since 2016.
