Its Price Band fixed at Rs 288 to Rs 304 per equity share of face value of Rs5 each
FinTech BizNews Service
Mumbai, November 21, 2023: Flair Writing Industries, shall open its initial public offering of Equity Shares on Wednesday, November 22, 2023. The Company plans to raise funds through Equity Shares of face value Rs5 each aggregating up to Rs 5,930.00 million [Rs593 crore] . The offer comprises of fresh issue of Equity Shares aggregating up to Rs2,920.00 million [Rs292 crore] (“Fresh Issue”) and an offer for sale aggregating up to Rs 3,010.00 million [Rs301 crore] (the “Offer for Sale” and together with the Fresh Issue, the “Offer”). The Company, in consultation with the Book Running Lead Managers, has undertaken a Pre-IPO Placement of 2,401,315 Equity Shares at an issue price of Rs 304.00 per Equity Share (including a premium of Rs299.00 per Equity Share) for a cash consideration aggregating to Rs730.00 million [Rs73 crore], on November 10, 2023. The size of the Fresh Issue has been reduced by Rs730.00 million [Rs73 crore] and accordingly, the size of the Fresh Issue is up to Rs2,920.00 million [Rs292 crore].
The Anchor Investor Bidding Date shall be Tuesday, November 21, 2023. The Offer will open on Wednesday, November 22, 2023 for subscription and will close on Friday, November 24, 2023.
The Price Band of the Offer has been fixed at Rs 288 to Rs304 per Equity Share. Bids can be made for a minimum of 49 Equity Shares and in multiples of 49 Equity Shares thereafter.
The Company proposes to utilize net proceeds from the fresh issue towards (a) Setting up a new manufacturing facility for writing instruments in District Valsad, Gujarat - estimated amount is Rs 559.93 million[Rs55.99 crore], (b) Funding capital expenditure of the Company and Flair Writing Equipments Private Limited (“FWEPL”), one of its Subsidiaries - estimated amount Rs 867.48 millions [Rs 86.75 crore], (c) Funding working capital requirements of the Company and its Subsidiaries, FWEPL and Flair Cyrosil Industries Private Limited ("FCIPL”) - estimated amount Rs 770.00 million [Rs 77.00 crore], (d) Repayment/pre-payment, in part or full, of certain borrowings availed by the Company and its Subsidiaries, FWEPL and FCIPL - estimated up to Rs 430.00 million [Rs 43 crore], and balance amount will be utilized towards general corporate purpose.
The Offer for Sale comprises of such number of Equity Shares aggregating up to Rs514.00 million [Rs51.40 crore] by Mr. Khubilal Jugraj Rathod; up to Rs396.50 million by Mr. Vimalchand Jugraj Rathod; up to Rs323.00 million [Rs32.30 crore] by Mr.Rajesh Khubilal Rathod; up to Rs 323.00 million [Rs 32.30 crore] by Mr. Mohit Khubilal Rathod; up to Rs 323.00 million [Rs32.30 crore] by Mr. Sumit Rathod; up to Rs323.00 million [Rs32.30 crore] by Mrs. Nirmala Khubilal Rathod; up to Rs323.00 million [Rs 32.30 crore] by Mrs. Manjula Vimalchand Rathod; up to Rs161.50 million [Rs 16.15 crore] Equity share by Mrs. Shalini Mohit Rathod; up to Rs161.50 million [Rs16.15 crore] by Mrs. Sangita Rajesh Rathod and up to Rs161.50 million [Rs16.15 crore] Mrs. Sonal Sumit Rathod.
The Equity Shares are being offered through the red herring prospectus dated November 16, 2023 (“RHP”) filed with the Registrar of Companies, Maharashtra at Mumbai (“RoC”) on and are proposed to be listed on recognized stock exchanges (the “Stock Exchanges”) being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, NSE is the Designated Stock Exchange.
This Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 as amended (“SEBI ICDR Regulations”). The Offer is being made in accordance with Regulation 6(1) of the SEBI ICDR Regulations and through the Book Building Process, wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to qualified institutional buyers (“QIBs”, and such portion, the “QIB Portion”). The Company may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), out of which at least one-third shall be available for allocation to domestic Mutual Funds only, subject to valid Bids being received from the domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the the remaining QIB Portion (“Net QIB Portion”).
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB other than Anchor Investors, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders such that: (a) one-third of the portion available to Non-Institutional Investors shall be reserved for applicants with an application size of more than Rs0.20 million and up to Rs1.00 million, and (b) two-thirds of the portion available to Non-Institutional Investors shall be reserved for applicants with an application size of more than Rs1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Investors, subject to valid Bids being received at or above the Offer Price. Further, not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.
Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and Axis Capital Limited are the book running lead managers to the Offer.
