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Issue Details
| Issue Opens | 22nd November 2023 |
| Issue Closes | 24th November 2023 |
| Price Band | Rs. 288 – Rs. 304 |
| Issue size (Upper Band) | Rs. 593 Cr |
| Issue Type | FRESH ISSUE & OFFER FOR SALE |
| Market cap (based on upper band) | Rs. 3204 Cr |
| Sales- March 2023 (Rs./Crs) | 954 Cr |
| Net Profit - March 2023 (Rs./Crs) | 118 Cr |
| Industry | STATIONERY |
| Promoters | KHUBILAL RATHOD |
| Lead Manager | NUVAMA |
Objectives of the Issue – Fresh Issue & Offer for Sale– Rs. 593 cr
The Objectives of the Offer are for:
1. Setting up new manufacturing facility for writing instruments in Gujarat
2. Funding Capital expenditure of the company and its subsidiary
3. Funding working capital expenditure
4. Repayment in part of borrowings
5. General corporate purposes
| Name | Type of Shareholder | Value of Shares in cr | % of OFS |
|---|---|---|---|
| Khubilal Rathod | Promoter | 514 | 17% |
| Vimalchand Rathod | Promoter | 397 | 13% |
| Rajesh Rathod | Promoter | 323 | 11% |
| Mohit Rathod | Promoter | 323 | 11% |
| Sumit Rathod | Promoter | 323 | 11% |
| Nirmala Rathod | Promoter | 323 | 11% |
| Manjula Rathod | Promoter | 323 | 11% |
| Sangita Rathod | Promoter | 162 | 5% |
| Shalini Rathod | Promoter | 162 | 5% |
| Sonal Rathod | Promoter | 162 | 5% |
Flair Writing Industries is involved in the manufacturing and selling of stationary items like pens. The company sells pens under different brand names including Flair, Hauser, Pierre Cardin, and ZOOX.
The company is one of the biggest manufacturers of pens in the country with a market share of 9% and they also act as an OEM manufacturer for other companies. Flair manufactures pens for Reynolds.
They also sell a creative range of products including water colours, crayons, sketch pens, erasers, wooden pencils and geometry boxes, fine liners, sharpeners, and scales.
| Revenue by Breakdown: | ||||
|---|---|---|---|---|
| Segment | Q1FY24 | FY23 | FY22 | FY21 |
| Writing Instruments | 97% | 97% | 96% | 96% |
| Houseware products | 2% | 1% | 0% | 0% |
| Exports, scrap sales | 1% | 2% | 4% | 4% |
The revenue of the company has grown at a CAGR of 10% over the last three years
In FY23, The company’s Return on Equity stands at 31%
The Net Profit Margin of the company stands at 13% in FY23 and the Net profit grew by 77% in the last three years
The company has consistently reported positive cash flow operations in the last three fiscal years and the recent June quarter as well.
| Rs./Crs | Q1 FY24 | FY 23 | FY 22 | FY 21 |
|---|---|---|---|---|
| Sales | 249 | 954 | 588 | 311 |
| Net Profit | 32 | 118 | 55 | 1 |