Flair Writing Industries has filed its Draft Red Herring Prospectus with SEBI to ₹745 crore, including an offer for sale by the promoters.
The company will issue fresh equity shares of ₹365 crore and offer for sale aggregating to ₹380 crore.
The company proposes to use the net proceeds of the fresh equity issuance to set up a new manufacturing facility for writing instruments in the Valsad district in Gujarat with an investment of ₹96 crore, fund capital expenditure of ₹164 crore, repayment loan of ₹43 crore, and balance amount towards general corporate purposes.
The company is among the top three players in the overall writing instruments industry with a revenue of ₹916 crore in FY’23.
Also read: SEBI halves IPO listing cycle to 3 days
The company is also among the top two organised players, which have seen faster growth in revenue as compared to overall writing and creative instrument industry growth rate.
The industry grew at a CAGR of 5.5 per cent between FY’17 and FY’23, it grew at a CAGR of about 14 per cent in the same period.
The offer for sale of equity shares comprises equity shares aggregating up to ₹76 crore by Khubilal Jugraj Rathod; ₹ 57 crore by Vimalchand Jugraj Rathod; and ₹38 crore each by Nirmala Khubilal Rathod, Manjula Vimalchand Rathod, Rajesh Khubilal Rathod, Mohit Khubilal Rathod and Sumit Rathod; and ₹19 crore each by Sangita Rajesh Rathod, Shalini Mohit Rathod and Sonal Sumit Rathod.
The company has reported the highest operating and net income margins of 17.8 per cent and 9.6 per cent in FY’22.
Nuvama Wealth Management and Axis Capital are the Book Running Lead Managers to the issue.