Tirupati Inks gets SEBI nod for FPO

Nifty BSE | NSE 24/05/12 Are Mutual Funds betting on Nifty?

Tirupati Inks, 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 51.50 crore, of which Rs 11.51 crore allocated towards the promoter's contribution and Rs 39.99 crore allocated towards the net issue to public. The FPO is slated to open shortly.

The company 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% of the net issue is to be allotted on a proportionate basis to qualified institutional buyers, of which 5% will be available to Mutual Funds. 35% of the net issue is allocated for retail investors and the remaining 15% 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.