Shares of Linc Pen & Plastics surged as much as 20 per cent in trade on the BSE, after the writing instruments maker said its Japanese partner Mitsubishi Pencil will make an equity infusion of Rs 20 crore.
In the announcement, which came after market trading hours yesterday, the company said it has received a Rs 20- crore worth of equity infusion from its Japanese partner Mitsubishi Pencil.
Reacting to the news, shares of the company surged to the maximum possible level despite a weak market. The 30-share benchmark index Sensex was trading at 17,216.72, down by 40.64 points at 1107 hours.
On the BSE, the stock opened on a bullish note and hit the upper circuit limit of Rs 60.75.
As per the alliance agreement signed between the two firms, Linc Pen & Plastics will issue 2 million equity shares of Rs 10 each at Rs 100 a share to the Japanese firm, worth Rs 20 crore.
The Uni and Uni-ball brands from Mitsubishi Pencil contribute nearly 15 per cent to Linc's domestic turnover of Rs 37.5 crore. The tie-up is expected to substantially increase the contribution of these brands to Linc's total sales.
The Rs 250-crore firm Linc Pen has been the distributer of Uni and Uni-ball brands of Mitsubishi Pencil in India since 1992.
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