Another much hyped IPO –Tata Technologies — is also opening for subscription from today.
New Delhi: The Initial Public Offer (IPO) of Flair Writing Industries Limited and Gandhar Oil Refinery (India) Limited will be open for subscription from today.
Read More: Tata Technologies IPO Day 1: Know Price, GMP, Reviews, Other Details Before Buying
Flair Writing Industries Limited IPO Subscription, Price Band And Other Details
The third issue to tap the market is from writing instruments maker, Flair Writing Industries Limited which is tapping the capital markets with its fresh issue of Rs 292 crore and an offer for sale of 301 crore in a price band of Rs 288-304. The issue would open on Wednesday the 22nd of November and close on Friday the 24th of November. The company makes writing instruments and is a market leader, having brands such as Flair, Hauser and Pierre Cardin. It reported revenues of Rs 942 crore for the year ended March 23. It is also in the business of consumer homeware and makes plastic products. Its closest competitor would be recently listed Cello World who has the plastic business as its dominant business and the writing instruments as accounting for about 15 per cent. Here the case is the opposite where the dominant business is writing instruments. The company enjoys best in class net margins which are just short of double digit. The company reported an EPS of Rs 12.66. Based on this EPS, the PE multiple is 22.75-24.01 for the issue. Looking at the success of Cello World and the similarity in business, the issue would do well and offer scope for appreciation in the short to medium term. Yet another investment that is justified.
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Gandhar Oil Refinery (India) Limited IPO Subscription, Price Band And Other Details
The fourth issue to tap the markets is Gandhar Oil Refinery (India) Limited which is tapping the capital markets with its issue in a price band of Rs 160-169. The issue consists of a fresh issue component of Rs 302 crore and an offer for sale of 1.17 cr shares. The issue would open on Wednesday the 22nd of November and close on Friday the 24th of November. The company is the largest producer of white oils in the country and reported revenues of over Rs 4,000 crore for the year ended March 23. The company supplies its products to companies in the personal care, healthcare industry and performance oils. It has its plants in Maharashtra, and Sharjah in UAE. The company reported an EPS of Rs 23.77 for the year ended March 23. Based on this EPS, the PE for the issue is 6.73-7.11. The PE is indeed attractive and offers scope for appreciation in the short to medium term. The company would grow in the segments where it is a significant player and better utilising its Sharjah capacity which is a new plant and yet to reach full utilisation. Further the objects of the issue include capacity expansion which would lay the roadmap for further growth as the Maharashtra plant capacity is close to being fully utilised at 95 per cent.
