Kolkata: Japan's Mitsubishi Pencil has picked up a 13.5% stake in Linc Pen & Plastics, one of the country's top three writing instrument makers, for around 20 crore.
The Japanese firm now plans to manufacture pens out of India for its global market in the facilities of Linc, which has been distributing Mitsubishi's 'Uni-ball' range of pens in India for the past 20 years. Mitsubishi may also launch its office stationary products in India.
"Mitsubishi wanted to invest in one of the writing instruments company in India and since we already had a marketing arrangement, Linc became their first choice," Linc Pen MD Deepak Jalan told ET.
In a notice issued to BSE, Linc Pen said Mitsubishi will subscribe to 2 million equity shares of the company at 100 per share, comprising 13.53% of the enhanced capital of Linc on a preferential allotment basis. Linc intends to increase its equity share capital from the present 13 crore to 15 crore.
The Kolkata-based Jalan family, which had more than 70% in Linc Pens, will now be left with 60% stake. The Mitsubishi range contributes nearly 15% to Linc's 250-crore revenue, which the company expects will now grow substantially.
Last year, Japanese writing instrument firm Kokuyo Co announced plans to acquire more than 50% stake in Camlin for some 365 crore. French stationary firm BIC Group plans to buy a sizeable stake in market leader Cello Pens.
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