Linc Pen signs capital pact with Mitsubishi Pencil

Kolkata, March 27 (IANS) The Rs.2.5 billion Linc Pen and Plastics Tuesday signed a capital pact with Mitsubishi Pencil Co. Limited to issue two million equity shares to the Japan-based company.

The Kolkata-based company signed a 'Business and Capital Alliance Agreement' with Mitsubishi Pencil to issue two million equity shares of Rs.10 each at Rs.100 per share, Linc Pen informed Bombay Stock Exchange (BSE).

"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 of both parties. The prima facie objective is to improve Mitsubishi Pencil Co's market share in India," the company said.

Linc Pen has distribution arrangement with Mitsubishi Pencil Co for its Uni/Uni-ball brand since 1992.

'It is expected that the capital tie-up will substantially increase the contribution of the Uni/Uni-ball brand to Linc's total sales revenue," it said.