Flair Writing IPO GMP Today – Flair Writing Industries Limited, a leading content writing and book publishing company, has filed IPO papers with SEBI to raise funds through fresh issue of shares. As the expected IPO opening date in late 2022 approaches, there is rising investor interest in Flair Writing IPO grey market premium (GMP) today. In this article, we take a closer look at the key details regarding Flair Writing IPO GMP today and price trends.
Overview of Flair Writing Industries IPO
Flair Writing Industries Ltd is one of the leading content writing companies in India offering services across industries. Founded in 2011 by Ankit Choudhary, the company provides writing, editing and publishing services for education sector clients. Some key details regarding the IPO are:
- IPO size around Rs 300 crores through fresh issue
- Fundraising aimed at inorganic growth, expand capacity and brand building
- Caters to students from K-12 and test prep segments through books
- Also offers creative writing, training, digital, HR & marketing content
- Filed IPO papers with SEBI in Sep 2022, issue opening likely in Dec
- Revenue from Operations at Rs 79 crores and PAT of Rs 8 crores in FY22
The public issue will help fund expansion plans of Flair Writing. Now let us try to analyze the grey market premium action for this IPO.
Flair Writing IPO GMP Today
The Grey Market Premium or GMP refers to the premium at which IPO shares trade in the unofficial grey market before they officially get listed on the stock exchanges. It serves as an important indicator of expected listing gains.
Some key things to know about Flair Writing IPO GMP today:
- GMP represents the difference between GMP price and IPO issue price
- It reflects the unofficial demand and supply dynamics for the IPO
- Strong GMP signals high investor demand while weak premium implies muted interest
- The grey market does not involve actual buying/selling of IPO shares
- GMP fluctuates rapidly based on news, analysis, reviews etc.
According to grey market sources, the Flair Writing IPO GMP today is estimated at:
- Rs 2-3 – This indicates the grey market price is around Rs 27-28 which is a premium of Rs 2-3 over the likely IPO price band of Rs 24-26 per share.
- The modest GMP reflects initial healthy investor demand for this emerging company.
- However, GMP has speculative nature and tends to fluctuate widely.
To summarize, Flair Writing IPO grey market premium today of Rs 2-3 indicates initial healthy investor interest based on unofficial dealings so far. However, the reliability of GMP remains limited in predicting actual listing performance.
Assessing Key Listing Gain Indicators for Flair Writing IPO
While GMP provides a quick indicator on listing expectations, investors should assess other qualitative and quantitative factors impacting an IPO’s listing performance.
1. Underlying Financial Growth Trends
- Flair Writing has reported strong revenue CAGR of 67% over FY20-22 period
- Operating margins have averaged 14% over last 3 years
- PAT jumped from Rs 1.2 crores in FY20 to Rs 8 crores in FY22
- Return ratios also remain reasonable with RoNW of 28% in FY22
Rapid growth trajectory indicates strong business fundamentals
2. IPO Valuation and Pricing Attractiveness
- IPO estimated to be priced at P/E of 14x on FY22 EPS of Rs 1.9
- Seems reasonable compared to larger listed peer company S Chand & Co
- Price band expected at Rs 24-26 leaving some upside potential
Fair valuations and pricing strategy positive for listing gains
3. Market Conditions and Investor Sentiment
- Secondary markets have turned highly volatile due to global uncertainty
- Investor appetite remains selective with focus on growth outlook, valuations etc.
- The K-12 and education sector seeing sustained investor interest
Muted market situation remains a risk factor for listing performance
4. Analyst Outlook on Listing Gains
- Most analysts expect a MUTED LISTING for Flair Writing IPO
- Reasonable financial growth and valuations positives but fancy limited
- Small issue size, niche business model, new age risks and high volatility to weigh
- 5% listing gains forecasted amid rich IPO pipeline currently
Analysts anticipate muted listing amid volatile markets and rich pipeline of IPOs
Considering the multiple listing gain indicators discussed above, Flair Writing IPO is likely to see muted listing gains in the range of 5% given modest GMP trends and market conditions. However, financial fundamentals appear reasonable.
Should You Invest in Flair Writing IPO for Listing Gains?
Here is a perspective evaluating the investment case for Flair Writing IPO from listing gains outlook:
Positives
- Strong growth and increasing presence in K-12 & test prep content
- Asset light business model with strong earnings profile
- Reasonable valuations sought in line with industry benchmarks
- Leveraging digital platform for content distribution and reach
Factors Warranting Caution
- Fancy appears limited for niche education content players
- Small IPO size of Rs 300 crores only may affect liquidity
- Sustaining growth momentum and content quality key challenges
- Execution risks as company expands into new verticals and formats
The Final Verdict
Flair Writing IPO offers a reasonable story leveraging digitization and test-prep boom. But modest GMP and volatile market conditions indicate muted listing gains.
Investors should not apply purely for listing premium and evaluate fundamentals, growth prospects and reasonable valuations as key parameters.
Overall, Flair Writing IPO GMP of Rs 2-3 appears fair but overall listing outlook seems subdued amid current secondary market trends. Investors should make applications as per risk appetite without getting swayed by GMP trends alone.
Frequently Asked Questions on Flair Writing IPO GMP Today
Here are some commonly asked questions regarding Flair Writing IPO grey market premium today:
What is the current grey market price for Flair Writing IPO?
The grey market price for Flair Writing IPO is estimated at around Rs 27-28 which is a premium of Rs 2-3 over the likely IPO price band of Rs 24-26 per share. This points to modest GMP currently.
What is driving the initial grey market premium for Flair Writing IPO?
The early GMP reflects initial healthy demand owing to Flair Writing’s rapid growth in K-12 & test prep content, asset light business model and reasonable valuations in line with industry benchmarks.
How reliable is GMP as an indicator for listing gains of Flair Writing IPO?
While GMP provides a quick pulse on listing expectations, it has limited reliability due to the unofficial speculative nature of grey market trading. Investors should not solely rely on GMP for application decisions.
How does GMP trend impact IPO subscription demand generally?
A strong grey market premium and positive reviews do tend to improve retail investor demand for IPOs. However, GMP has low reliability and demand depends more on underlying business strength.
What return is expected from Flair Writing IPO on listing date?
As per analyst estimates, Flair Writing IPO is likely to see muted listing gains to the tune of 3-5% over its issue price based on current GMP trends and market conditions. However, the actual listing performance remains unpredictable.
What should be my application strategy for Flair Writing IPO?
Analyze company’s growth prospects, financials, valuation comfort, future plans etc. and apply only if your research indicates it as a sound investment proposition within your risk profile. GMP should only provide directional guidance.
Where can I check the Flair Writing IPO grey market premium online?
The GMP can be tracked on websites like greysmarketpremium io, chaupal, livemarket, updation and on various telegram groups focused on discussing grey market trends for upcoming IPOs.
Does high GMP always result in strong listing gains for IPOs?
Not necessary. Many IPOs in the past with high GMP have witnessed sharp correction closer to listing resulting in muted gains on listing day. The unofficial nature makes GMP an unreliable indicator of actual listing performance.
How often does IPO Grey Market Premium fluctuate? What causes this?
GMP fluctuates rapidly based on financial analysis, news flow, expert reviews, overall market trends etc. Speculative trading in unregulated grey market results in volatility in IPO GMP.
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