Flair Writing IPO: Don’t Miss The ‘Risk Factors’ Before Investing
Flair Writing Industries is a well-known company in Bharat that makes writing instruments like pens. They are one of the top three players in our country’s writing instruments industry.
They also produce houseware products and steel bottles. Their business involves manufacturing and selling products under their own brands like ‘Flair’, ‘Hauser’, and ‘Pierre Cardin’, and they also do contract manufacturing.
What is Flair Writing IPO?
The Initial Public Offering (IPO) is when a company offers its shares to the public for the first time. Flair Writing’s IPO started on November 22 and will close on November 24. The price band for this IPO is set at ₹288 to ₹304 per share.
The IPO consists of a fresh issue of shares worth ₹292 crore and an offer for sale of shares worth ₹301 crore. The total size of the IPO is ₹593 crore. The Grey Market Premium (GMP) today is +71, indicating a positive outlook among investors.
What Are The Risk Factors In Flair Writing?
Investing in this IPO comes with several risks. For instance, the company’s growth depends on its ability to expand and meet customer demands. If they can’t do this effectively, it could hurt their business. They have yet to order machinery worth ₹75.02 crore needed for expansion, which is a concern.
Other risks include rising raw material costs, reliance on their distribution network, competition, and their dependency on imported raw materials. Also, the company does not have a specific research and development (R&D) department, which could impact its ability to innovate.
Strengths or Positive Aspects Of Flair Writing
Despite the risks, there are several strengths. Flair Writing has a strong market presence and a growing sales volume. They are also expanding their product portfolio, which could improve their margins in the future. Financially, they have shown good returns on equity and capital employed, and their net profit has seen significant growth in recent years.
Is Flair Writing IPO Getting A Good Response?
The IPO is getting a good response. On the first day itself, it was subscribed two times, showing strong interest from investors. This is a positive sign and indicates confidence in the company’s growth potential.
It shows that while there are risks in the Flair Writing IPO, the company also has potential and public trust. It’s important to weigh these factors carefully before making an investment decision.