Tirupati Inks plans for 51-cr FPO

(I-Newswire) March 10, 2010 - Tirupati Inks based at Kanpur in Uttar Pradesh, has announced to bring a follow-on-public-offering (FPO) to funds its 51.5-cr expansion plans in three months from now. The company plans to enter the capital markets with an FPO of its equity shares of face value of Rs 10 each aggregating to Rs 515 million to be decided through 100% book building process.

50% of the net issue will be allocated on a proportionate basis to qualified institutional buyers, of which 5% will be available to mutual fund. 35% of the net issue is reserved for retail investors and the remaining 15% will be available to non-institutional bidders.

On the 30 December 2009 Tirupati Inks has filed a draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India. The company has appointed Ashika Capital as the Book Running Lead Managers for the FPO.

After the FPO, the company proposes to list its stock on the Bombay Stock Exchange and National Stock Exchange. At present, the company is listed on the Delhi Stock Exchange.

Tirupati Inks is engaged in the business of manufacturing of printing ink and trading of polyester films and other packaging materials. The company has two units – one in Dada Nagar, Kanpur and second unit in SIDCO Industrial Complex, Bari Barhama, Jammu in Jammu & Kashmir.

Sanjiv Agarwal, chairman of Tirupati Inks said: “The objects of the issue is to raise financial resources for setting up new facility for manufacturing of specialty Inks like digital inks, UV Inks, offset printing inks and ink concentrates to augment and support existing product range of the company, which includes rotogravure inks and flexographic inks used in printing of flexible packaging material. In addition to this, the issue proceeds proposed to be used for company`s inorganic growth plans by way of acquisitions and strategic investments.”

The ink industry is growing at the rate of 15% annually and in the next five years will witness a 20% growth. The company setting up a new unit in Gaziabad in Delhi NCR which is expected to be operational by September 2010, adds Agarwal.

Maneesh Pareek, president, international marketing said: “We have been exporting inks to Middle East, Africa and South East Asian countries and have recently launched water base printing inks for food packaging industry. We have also entered into a joint venture for technology transfer and service with a company based in Algeria.”

Tirupati Inks will be the third listed ink company in India after Micro Inks and DIC India.

About Manish Pareek:
Tirupati Inks Ltd (tirupatiinks.com), a solely Indian Company, is the leading producer and exporter of printing inks and a leading provider of materials to packaging, coatings, plastics, Tirupati Inks has global networking sales and technical supporting distributing channel partners around the world.

Company Contact Information
Manish Pareek
2,3,Neelam baug Shopping Centre,Girdhar Nagar.,
Shahi Baug Road,Ahmedabad,
Gujarat,India
380004
Phone : 00919898069073