Flair Writing IPO Review

Flair Writing IPO is set to raise a total of Rs 593 crore via IPO route, including a fresh share sale of Rs 292 crore and an offer for sale of up to 301 crore.  Flair Writing is engaged in developing and manufacturing writing instruments that are tailored to the continuously shifting market.

IPO opensNovember 22, 2023
IPO ClosesNov 24, 2023
IPO Size (Rs.)₹593.00 Cr
IPO Size (shares)19,506,578 shares
BreakupFresh issue ₹292.00 Cr + OFS ₹301.00 Cr
Face Value:₹ 5/-
IPO Price in Rs :₹288 to ₹304
Minimum Lot49 Shares
Listing AtNSE , BSE
Anchor & QIB Quota50%
NII Quota15%
Retail Quota35%
 Lead ManagerNuvama Wealth , Axis Capital Limited
RegistrarLink Intime

About Flair Writing Industries Limited:

  • Flair Writing Industries Limited (“Flair”) was incorporated on August 12, 2016.
  • Flair is among the Top-3 players in the overall writing instruments industry with a market share of approximately 9% in the overall writing and creative instruments industry in India, as of March 31, 2023.
  • Flair manufactures and distributes several brands in India and partner with various international brands in the writing instruments industry. Company’s products are sold under the “Flair” brand, their principal brands “Hauser” and “Pierre Cardin”. They have recently introduced “ZOOX” brand in India.
  • They manufacture and distribute writing instruments including pens, stationery products and calculators. Flair Writing has also diversified into manufacturing houseware products and steel bottles.
  • They launched a range of “Flair Creative” products in Financial Year 2021 which include water colours, crayons, sketch pens, erasers, wooden pencils and geometry boxes, fine liners, sharpeners, and scales. They offered 727 different products as of June 30, 2023. 
  • The company also contract manufactures writing instruments as an OEM for export as well as for sale in India.
  • They also provide customized corporate gift products to their corporate customers. 
  • Flair Writing operates 11 manufacturing plants located in Valsad, Gujarat; Naigaon (near Mumbai), Maharashtra; Daman, Union Territory of Dadra and Nagar Haveli and Daman and Diu; and Dehradun, Uttarakhand.
  • As of March 31, 2023, ithad ~7,700 distributors/dealers and ~315,000 wholesalers/retailers.

Financials: Flair Writing Industries Limited

Particulars / Rs. In crore2023 (03) 2023 (12) 2022 (12) 2021 (12) 
Revenue from Operations 246.70 942.66577.40 297.99 
Revenue Growth (%) – 19.47% 16.90% – 
EBITDA  52.34 183.51 97.57 23.00 
EBITDA Margin (%) 21.21% 19.47% 16.90% 7.72% 
Profit before Tax 42.95 158.80 73.45 2.14 
Net Profit32.14118.155.15 0.99 
Net Profit Margin (%)13.03% 12.53% 9.55% 0.33% 
Share Capital 46.69 46.69 23.35 23.35 
Reserves 419.66 388.26 293.63 238.26 
Net Worth470.16 437.99 319.86 264.65 
EPS – Basic & Diluted (₹)  3.4412.66 5.91 0.11 
RONW (%) as stated 7.08%31.17% 18.87% 0.37% 
Net Asset Value (₹)50.34 46.90 34.25 28.34 
ROCE (%)7.64%31.24% 17.41% 0.14% 
Post issue Share Capital52.7   
IPO price304.0   
EPS Fy2311.2   
PE Fy2327.1   
EPS Fy24 (annualized)12.2   
PE Fy24  (annualized)24.9   
Market cap in Lacs3,204.2   
Market cap / Sales3.40   

Anchor: Flair Writing IPO

Response to the anchor book issue was good. Besides many marquee investors Out of the total allocation to the Anchor Investors, 47.34% of
the total allocation was done to 6 domestic mutual funds who have applied through a total of 14 schemes. Some investors were

Assessment: Flair Writing IPO

  • The company did a pre-IPO placement worth Rs. 73 cr. (2401315 shares at Rs. 304 per share in November 2023 to Volrado Venture Partners,
  • The company intends to utilize the net proceeds from the issue towards the funding of the following objects:



Estimated amount  rs. million


Setting up the New Valsad Unit



Funding capital expenditure of our Company and our Subsidiary, Flair Writing Equipments Private Limited



Funding working capital requirements of our Company and our Subsidiaries, Flair Writing Equipments Private Limited and Flair Cyrosil Industries Private Limited



Repayment/pre-payment, in part or full, of certain borrowings availed by our Company and our Subsidiaries, Flair Writing Equipments Private Limited and Flair Cyrosil Industries


  • The company sold a total of 130.26 crore units of pens. 
  • The company sold 97.53 crore units or 74.82 per cent in the domestic markets, while 32.83 crore units, or 25.18 per cent, units were exported globally. Value wise export sales is lower (20%) as realization is generally lower from exports.
  • Flair Writing revenue from operations, profit after tax, EBITDA and return on capital employed ratio having grown at a CAGR of 77.86%, 992.77%, 133.21% and 200.03%, respectively, from Financial Year 2021 to Financial Year 2023. Set out below is our revenue from operations, PAT, EBITDA and the Return on Capital Employed Ratio for the periods indicated
  Particulars3 month ended June 30, 23Financial Year 2023Financial Year 2022Financial Year 2021
Revenue from operations (in ₹ million)2,466.989,426.605,773.982,979.88
Profit after tax (in ₹ million)321.381,181.00551.519.89
EBITDA (in ₹ million)523.351,835.12975.68229.97
Return on Capital Employed Ratio (in %)7.6431.2417.410.14
  • The cost of its raw material is 50-52% of its revenues.
  • Flair has established business relationships with some of the leading pioneers in the writing industry, 
  • company claims to have the largest distributor/dealer network and wholesale/retailer network in the writing instruments segment in India. 
  • The recognition and reputation of their flagship brand, “Flair” and principal brands, “Hauser” and “Pierre Cardin” among customers, distributors, suppliers and others has contributed to the growth and success of the business. The share of these brands in revenue is about 50%, 25% and 5% approximately.
  • Peers:
CompanyCMP (Rs.)Revenue (In Cr.)PAT (In Cr.)NPMP/EMcap ( cr.)Mcap/sales
Flair Writing30494311812.5%27.13,204.23.40
Linc Limited697487377.6%26.91,0372.13
Kokuyo Camlin147775243.1%36.81,4751.90
Cello World7711,79728515.9%61.516,3639.11
  • Flair Writing is among the Top-3 players in the overall writing instruments industry in India;
  • Flair Writing Management has guided:
    • Net debt will come down to ₹95 cr vs ₹135 cr after IPO.
    • Peak revenue potential of company post expansion will be ₹1750 cr.
  • Flair Writing IPO is coming at a PE ratio of 27.1 (FY23) and 24.9x (FY24 annualized on Q1FY24 results).
  • Flair Writing has churned out impressive financial growth over the last few years.
  • I intend to apply in Flair Writing IPO. Company has a good track record and prospects look encouraging. They have been consolidating in existing business and are expanding into adjacent areas.
  • GMP as reported on social media is around Rs. 70.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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