November : Flair Writing Industries Limited (the “Company”), 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 ₹ 5 each aggregating up to ₹ 5,930.00 million [₹593 crore] . The offer comprises of fresh issue of Equity Shares aggregating up to ₹2,920.00 million [₹292 crore] (“Fresh Issue”) and an offer for sale aggregating up to ₹ 3,010.00 million [₹301 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 ₹ 304.00 per Equity Share (including a premium of ₹299.00 per Equity Share) for a cash consideration aggregating to ₹730.00 million [₹73 crore], on November 10, 2023. The size of the Fresh Issue has been reduced by ₹730.00 million [₹73 crore] and accordingly, the size of the Fresh Issue is up to ₹2,920.00 million [₹292 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 ₹ 288 to ₹304 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 ₹ 559.93 million[₹55.99 crore], (b) Funding capital expenditure of the Company and Flair Writing Equipments Private Limited (“FWEPL”), one of its Subsidiaries – estimated amount ₹ 867.48 millions [₹ 86.75 crore], (c) Funding working capital requirements of the Company and its Subsidiaries, FWEPL and Flair Cyrosil Industries Private Limited (“FCIPL”) – estimated amount ₹ 770.00 million [₹ 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 ₹ 430.00 million [₹ 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 ₹514.00 million [₹51.40 crore] by Mr. Khubilal Jugraj Rathod; up to ₹396.50 million by Mr. Vimalchand Jugraj Rathod; up to ₹323.00 million [₹32.30 crore] by Mr.Rajesh Khubilal Rathod; up to ₹ 323.00 million [₹ 32.30 crore] by Mr. Mohit Khubilal Rathod; up to ₹ 323.00 million [₹32.30 crore] by Mr. Sumit Rathod; up to ₹323.00 million [₹32.30 crore] by Mrs. Nirmala Khubilal Rathod; up to ₹323.00 million [₹ 32.30 crore] by Mrs. Manjula Vimalchand Rathod; up to ₹161.50 million [₹ 16.15 crore] Equity share by Mrs. Shalini Mohit Rathod; up to ₹161.50 million [₹16.15 crore] by Mrs. Sangita Rajesh Rathod and up to ₹161.50 million [₹16.15 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 ₹0.20 million and up to ₹1.00 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 ₹1.00 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.
All Bidders, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank account (including UPI ID (as defined hereinafter) in case of UPI Bidders) which will be blocked by the SCSBs or the Sponsor Banks as applicable, to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see “Offer Procedure” beginning on page 427 of the RHP.
Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and Axis Capital Limited are the book running lead managers to the Offer.
All capitalised terms referred to in this press release that have not been defined shall have the same meaning as prescribed in the RHP.
Flair Writing Industries Limited is proposing, subject to the receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offering of its Equity Shares and has filed the RHP with the RoC. The RHP is available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges i.e. BSE and NSE at www.bseindia.com and www.nseindia.com, respectively, website of the Company at www.flairworld.in and websites of the BRLMs, i.e. Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and Axis Capital Limited at and www.nuvama.com and www.axiscapital.co.in, respectively. Any potential investors should note that investment in Equity Shares involves a high degree of risk and for details relating to such risk, please see the section entitled ‘Risk Factors’ on page 30 of the RHP. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision instead shall rely on RHP.
This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, no offering of securities is being made in the United States.