Flair Writing garners Rs 178 crore from anchor investors

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New Delhi, Nov 21 (PTI) Ahead of its initial public offering, pen maker Flair Writing Industries Ltd, on Tuesday, said it has mopped up Rs 178 crore from anchor investors.

The company has allocated 58.52 lakh equity shares to 23 funds at Rs 304 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website.

Those that participated in the anchor book include -- SBI Mutual Fund (MF), Aditya Birla Sun Life MF, Tata MF, ICICI Prudential Life Insurance Company, SBI Life Insurance Company, Troo Capital and Winro Commercial (India) Ltd.  Flair Writing's IPO comprises 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.

At present, promoters and promoter group entities own 100 per cent stake in the company.

The issue, with a price band of Rs 288-304 a share, will be open for subscription during November 22-24.

Proceeds of 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 subsidiaries FWEPL and Flair Cyrosil Industries. Also, the money will be used for payment of the 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 overall writing instruments industry with a market share of about nine 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.

Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Ltd) and Axis Capital Ltd are the book-running lead managers to the IPO. PTI SP BAL BAL

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