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| Tirupati Inks' FPO to raise Rs 50 crore |
| Virendra Singh Rawat / New Delhi/ Lucknow Mar 16, 2010, 00:23 IST |
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Kanpur-based Tirupati Inks Limited is planning to raise over Rs 50 crore from the capital market with its follow-on public offer (FPO) to fund its expansion plans.
The company will use the funds for setting up a greenfield unit at Ghaziabad for manufacturing specialty inks such as digital ink, ultra-violet ink, offset printing ink and ink concentrates to augment and support its existing product line.
The FPO will comprise equity shares with face value of Rs 10 each aggregating Rs 51.5 crore to be decided through 100 per cent book building process.
The company has already filed a draft prospectus with The Securities and Exchange Board of India’s (Sebi) and is likely to float its FPO next month.
“Of the proceeds, around Rs 15 crore would be utilised for the working capital needs of the proposed plant, which will start functioning by the end of the current calendar year,” company chairman Sanjiv Agarwal told Business Standard.
The company already has two plants in Kanpur and Jammu, and plans to list its stocks on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) following the FPO.
“We are quite optimistic of the capital market response to our FPO, since the stock markets are on the surge,” he said adding the domestic ink industry was growing at over 15 per cent annually.
Fifty per cent of the net issue would be allocated on a proportionate basis to Qualified Institutional Buyers (QIB), of which 5 per cent will be available to mutual fund. Thirty five per cent of the net issue will be reserved for retail investors and the remaining 15 per cent is available to non-institutional bidders.
Ashika Capital Limited is the book running lead manager for the FPO.
Tirupati, which posted a turnover of Rs 51 crore last fiscal, is eyeing a turnover of Rs 65 crore this financial year. The company has presence in the export market also.
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