Flair Writing’s IPO: Shares Debut at a 66% Premium, Beating Market Expectations

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Flair Writing Industries: Shares Make a Grand Debut with a 66% Premium

Flair Writing Industries, a leading player in the writing instruments industry, has recently made headlines with its impressive performance on the National Stock Exchange. The company’s shares opened with a staggering 64.8% gain at Rs.501, doubling both analysts’ expectations and the grey market premium.

A Remarkable Journey

Flair’s journey has been nothing short of remarkable. As one of the top 3 players in the writing instruments industry, the company reported a 9.9 times CAGR growth in net profit during FY21-FY23. The EBITDA margin rose sharply from 7.7% in FY21 to 21.2 percent in FY23, indicating a strong and stable financial position.

A Week of Wins

The past week has been particularly fruitful for Flair Writing Industries. The stationary products manufacturer emerged as the fourth company to record better-than-expected listing gains. This success can be attributed to the robust market mood at Dalal Street, reasonable valuations, and strong IPO subscription numbers.

Market Performance

Despite an initial correction of around 50 rupees, the stock remained steady at Rs.450.90 for the rest of the trading session. This represents a 10% decrease from the opening price. However, compared to the issue price, the stock rallied 48.32% at close on the NSE, with a volume of 1.27 crore equity shares. On the BSE, it gained 48.91% with a volume of 6.97 lakh shares.

A Successful Public Issue

The Mumbai-based writing instruments manufacturing company closed its public issue last week after a 46.68 times subscription during November 22-24. The company raised Rs.593 crore via the public issue, which included a fresh issuance of shares worth Rs.292 crore and an offer-for-sale of Rs.301 crore by the Rathod family.

A Promising Future

Most investors advise holding the stock for the medium-to-long term, given the strong fundamentals and market share in the writing instruments industry. Research analyst Parth Shah from StoxBox recommends investors who have received allotment to hold the stock from a medium to long term perspective. He believes that Flair’s deep insights into the writing products business, coupled with a diversified product range in a segment characterized by perennial demand, allows the company to maintain cost competitiveness, further solidifying its market position.

Conclusion

The rapid revenue growth, along with the geometric expansion in demand, is a testament to Flair’s successful market penetration and responsiveness to increased demand, particularly in the school sector. As a stationery entity, the net profit margin exceeding 10% underscores the company’s sound financial health. Rajan Shinde, a research analyst at Mehta Equities, also advises long-term investors to hold the stock considering the healthy growth in the writing and creative instruments industry in India and strategic partnerships with global brands.

In conclusion, Flair Writing Industries has proven itself to be a strong contender in the writing instruments industry, demonstrating impressive growth and promising potential for future success.

Disclaimer: The information provided in this blog post is for informational purposes only. While every effort has been made to ensure the accuracy of the information, the author and publisher are not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information. Always conduct your own research and consult with a qualified professional before making any investment decisions. The author and publisher expressly disclaim any liability in respect of the content or any actions taken or not taken based on any or all of the contents of this blog post.

Keykwords : Flair Writing Industries, National Stock Exchange, Shares, Analysts’ expectations, Grey market premium, Writing instruments industry, CAGR growth, EBITDA margin, Dalal Street, IPO subscription numbers, Public issue, Medium-to-long term investment, Market penetration, School sector, Net profit margin, Global brands, Strategic partnerships, Writing and creative instruments industry

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