Pen maker Flair Writing Industries made a robust debut in the stock market on Friday and closed trading on a high note. The firm’s shares listed on the BSE at Rs 503, marking a premium of 65.45 per cent over the issue price of Rs 304. While on the NSE, the pen maker’s shares debuted at Rs 501 a piece, logging a premium of 64.80 per cent over the issue price.
The firm’s stock rallied 69 per cent to touch Rs 514 during the day, and later closed at Rs 452.70 apiece, registering a of 48.91 per cent, reported PTI. The company’s market valuation stood at Rs 4,771.25 crore. About 6.98 lakh shares of the firm were traded on the BSE, while 1.27 crore shares were traded on the NSE during the day.
The initial public offering (IPO) of the company included a fresh issue of equity shares aggregating up to Rs 292 crore and an offer-for-sale (OFS) of equity shares worth Rs 301 crore by promoters and promoter group entities. The issue was priced in the range of Rs 288 to Rs 304 per share. The issue was subscribed 46.68 times on the last day of the bidding on November 24.
The firm plans to use the funds from the issue to establish a manufacturing facility for writing instruments in Valsad district in Gujarat, and funding the company’s capital expenditure and subsidiary Flair Writing Equipments Pvt Ltd (FWEPL). Further, the company intends to utilise the funds to help support the working capital requirements of the firm and its subsidiaries FWEPL and Flair Cyrosil Industries.
Additionally, the funds would also be used towards loan payments and general corporate purposes. Notably, the firm owns the more than 45-year-old brand ‘Flair’ and comes among the top three players in the writing instrument industry and has a market share of about 9 per cent, as of March 2023.
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