Mitshubishi Pencil Co Ltd. will pick up 13.53 per cent stake in Linc Pens and Plastics Ltd.
The city-headquartered, Rs 250-crore Linc Pens said on Tuesday that it plans to raise Rs 20 crore through a fresh issue of equity shares to Mitshubishi Pencil Co. Ltd.
Linc Pens board decided to issue 20 lakh equity shares of Rs 10 each at a premium of Rs 90 a share. Tokyo-headquartered Mitshubishi through this “business and capital alliance agreement” will acquire 13.53 per cent stake in the enhanced capital of the company.
This, incidentally, is the first equity investment by Mitshubishi in Linc Pens.
Linc Pens currently has a marketing contract with Mitsubishi for marketing Japanese company's Uniball brand of pens.
A Linc communication to the Bombay Stock Exchange (BSE) said that its board has also proposed to increase the authorised equity share capital from present Rs 13 crore to Rs 15 crore.
Under the present holding pattern, 69.44 per cent of the Linc Pens is held by the Jalans – the promoter group; and the remaining 30.56 per cent is public shareholding.
Shares of Linc Pens closed at Rs. 47.55, up by nearly 4.40 per cent on the BSE on Tuesday.