Linc Pen & Plastics to issue 2 million shares to Mitsubishi Pencil Co. Ltd. at Rs.100

Linc Pen & Plastics has signed a 'Business and Capital Alliance Agreement" with Mitsubishi Pencil Co. Ltd. of Japan to issue 2 million equity shares of Rs.10 each at Rs.100 per share.

The company has a distribution arrangement with Mitsubishi Pencil Co for its Uni / Uni-ball brand since 1992. The new development is seen as a joint move to strengthen the relationship between the two companies which could serve to open new avenues of commercial growth for both parties.

The primary objective of the capital alliance is to improve Mitsubishi Pencil Co's market share and the Uni / Uni-ball brand growth in India by employing Linc Pen's sales / marketing and production capabilities and Mitsubishi Pencil Co's product development, and writing instrument technology prowess.

The Uni / Uni-ball brand from Mitsubishi Pencil contributes nearly 15% to Linc's domestic turnover and it is expected that the said capital tie-up will substantially increase the contribution of the uni / uni-ball brand to Linc's total sales revenues. In an effort to step up its brand building efforts for the Uni / Uni-ball, the company last year brought on Katrina Kaif as the brand ambassador for Uni-ball.

The Linc Pen & Plastics Ltd stock closed the day at Rs.47.55, up by Rs.2 or 4.39%. The stock hit an intraday high of Rs.51.20 and low of Rs.46.15.

The total traded quantity was 44489 compared to 2 week average of 8505.

Source : Equity Bulls

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