Mumbai, July 7: Siemens AG is infusing cash into its beleagured Indian subsidiary, Siemens Limited.

The German giant and its nominees are planning to pump in up to Rs 150 crore over the next year-and-a-half by subscribing to a redeemable preference shares issue of Siemens Ltd.

The Indian company will issue 15 crore cumulative redeemable preference shares of Rs 10 each on a private placement basis or through a preferential allotment.

The terms of the issue have not been finalised as yet.

Besides Siemens AG, the issue may be subscribed to by banks, financial institutions, foreign institutional investors and others.

Siemens AG has agreed in principle to provide assurances with regard to the redemption of the preference shares.

Siemens Ltd is seeking shareholders' approval for the issue and for raising the authorised share capital from the current Rs 50 crore to Rs 200 crore.The company has convened an extraordinary general meeting on August 2 in Mumbai for the purpose.

The proceeds of the issue will be utilised to supplement the existing capital of the company.

The company, it may be recalled, made a first-time loss of Rs 84.5 crore for the financial year ended March 1997. Siemens is likely to incur further losses until the restructuring exercise, currently in progress, brings a turnaround.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.