Flair Writing, Neccon Power get Sebi's go ahead to launch IPO

Pen manufacturer Flair Writing Industries and Assam-based Neccon Power and Infra have received markets regulator Sebi's go ahead to float initial public offerings.

With this, the total number of companies getting clearance from the Securities and Exchange Board of India (Sebi) has reached 75 this year so far.

Neccon Power and Flair Writing filed their IPO papers with Sebi in September and obtained the regulator's 'observations' on November 29 and November 30 respectively, according to the latest update with the capital markets watchdog.

Sebi's observations are necessary for any company to launch public issues such as initial public offer (IPO), follow-on public offer (FPO) and rights issue.

Flair Writing's IPO comprises equity shares of face value of Rs 10 each aggregating up to Rs 450 crore. This include fresh issue of shares aggregating up to Rs 330 crore and an offer for sale of up to Rs 120 crore.

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

The firm may consider issuing and allotting up to 7 lakh equity shares on a private placement basis for cash consideration aggregating up to Rs 50 crore.

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

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.

Neccon Power's initial share-sale issue will see sale of up to 1.27 lakh stocks.

Funds raised will be utilised for the working capital requirements and general corporate purposes.

PL Capital Markets will manage Neccon's initial share-sale.

Neccon Power is engaged in the power transmission and distribution sector and provides engineering, procurement and construction services.