Tirupati Inks FPO gets the SEBI nod

Tirupati Inks Ltd., a Kanpur-based company, engaged in the manufacturing of printing inks and giving complete packaging solutions, has received SEBI’s approval for a Follow on Public Offering (FPO). The Issue comprises of equity shares of the face value of Rs 10 aggregating to Rs 5150.00 lakhs, of which Rs. 1151.00 lakhs allocated towards the promoter’s contribution and Rs 3999.00 lakhs allocated towards the net issue to public. The FPO is slated to open shortly.

Tirupati Inks Ltd. has rolled out an elaborate organic and inorganic growth plans to augment its position in the segment. It is setting up an additional facility for manufacturing of Specialty Inks like Digital Inks, UV Inks, Offset Printing Inks and Ink Concentrates to extend existing product range of the company which include Rotogravure Inks and Flexographic Inks used in Printing of Flexible Packaging Material. In addition to this, the issue proceeds are proposed to be used for company’s inorganic growth plans by way of acquisitions and strategic investments. The proceeds from the FPO would be deployed to finance the growth agenda of the Company

Out of the offer, 50 per cent of the net issue is to be allotted on a proportionate basis to Qualified Institutional Buyers, of which 5 per cent will be available to Mutual Funds. 35 per cent of the Net Issue is allocated for Retail Investors and the remaining 15 per cent is allocated to non-institutional bidders.   

The shares of Tirupati Inks Limited is presently listed on Delhi Stock Exchange and after this FPO, the shares will also be listed on Bombay Stock Exchange. Ashika Capital Limited is the Book Running Lead Manager.

About Tirupati Inks Ltd:
Tirupati Inks Ltd, listed on the Delhi Stock Exchange a Kanpur based company with a turnover of Rs 7166.81 Lakhs for the year ended March 2010. Company has registered a net profit of Rs 215.42 Lakhs for the year ended March 2010. Tirupati Inks is in the business of formulation of state-of-the-art printing inks for the world wide graphics/printing and flexible packaging industries. The company has two manufacturing facilities at Kanpur & Jammu. The Kanpur unit of the company has a capacity of 1000 M.T on a single shift basis and manufactures Gravure Printing Inks for Films, Paper, Aluminum Foils and Woven Sack. It also manufactures Rotogravure Printing Cylinders. The second unit at Jammu has a capacity 840 M.T on Single shift basis and specializes in manufacturing Gravure Inks for Polyester films, BOPP Films, Water Base Inks.