Linc Pen shares locked upper circuit on stake buys by Mitsubishi Pencil

NEW DELHI: Shares of Linc pen & Plastics locked upper circuit of 20% at Rs 60.75 after the company said it has signed an agreement with Mitsubishi Pencil co to issue 2 million shares of Rs 10 each @ 100 per share.

“The company has signed a ‘Business and capital alliance agreement' with Mitsubishi Pencil Co. of Japan to issue 2 million equity shares for total consideration of Rs 20 cr, comprising 13.53% of the enhanced capital of the company on a preferential allotment basis," Linc Pen and Plastics said in a filing to the stock exchanges.

“The primary objective of the capital alliance is to improve Mitsubishi Pencil Co’s market share and Uni/Uni-ball brand growth in India. The Uni/Uni-ball brand contributes nearly 15% to Linc’s domestic turnover and it is expected the said capital tie-up will substantially increase the contribution to Linc’s total sales revenue,” the company said.