Flair Writing Industries files IPO papers with Sebi

Pen manufacturer Flair Writing Industries has filed its draft papers with markets regulator Sebi to raise funds through an initial public offer.

The initial public offering comprises equity shares of face value of Rs 10 each of Flair Writing aggregating up to Rs 450 crore, according to the draft red herring prospectus (DRHP) filed with Sebi.

The offer comprises a fresh issue aggregating up to Rs 330 crore and an offer for sale of up to Rs 120 crore.

The company proposes to utilise the net proceeds raised through the fresh issue for purchase of machinery, constructing new factory buildings and related facilities at manufacturing plant in Valsad, Gujarat, funding working capital requirements, repayment/pre-payment of debt and for general corporate purposes.

The company may consider issuing and allotting up to 7,00,000 equity shares on a private placement basis for cash consideration aggregating up to Rs 50 crore at its discretion prior to registering the red herring prospectus, it added.

Axis Capital Ltd and Edelweiss Financial Services Ltd are the book running lead managers to the issue.

The equity shares of the company will be listed on BSE and NSE.

The company's flagship brand "Flair" was introduced in 1976. Its products are sold under principal brands Flair, Hauser and Pierre Cardin, Rudi Kellner and Landmark.