MUMBAI, Aug 12: The Industrial Credit & Investment Corporation of India is seeking shareholders' nod to raise its share capital by another Rs 1,000 crore, by way of preference share issue, to Rs 1,600 crore in the coming months.

The company will seek shareholders' permission in the annual general meeting to be held in Mumbai on September 12, 1997.

Currently, the authorised capital of the company is Rs 750 crore consisting of equity share capital of Rs 600 crore, preference share capital of Rs 100 crore and unclassified share capital of Rs 50 crore.

ICICI said liberalisation of the economy and subsequent increase in the business volumes gave rise to an urgent need to increase the net-worth in order to take larger exposures. Thus, in order to improve the net-worth and at the same time not dilute the present earnings per share (EPS), the company has decided to launch the said preference share issue.

With the proposed preference issue of 100 crore shares of Rs 10 each, the total authorised capital of the company would be Rs 1,600 crore, of which Rs 600 crore would be classified as equity share capital. After the amendment in the company's memorandum of association, the Rs 1,600 share capital of the company would be divided into 160 crore shares of Rs 10 each.

The company is also increasing its borrowings limit up to Rs 75,000 crore from the present Rs 40,000 crore due to its merger with SCICI.

With the recent changes in government regulations, shareholders will be receiving two-fold benefits of the preference share issue. One, the dividend from the preference share issue will not be liable for double taxation, and second, these shares offer fixed dividend as compared to equity shares.

With the merger of ICICI with SCICI, the company is now taking larger exposures and raising resources at very competitive rates. In the coming months, ICICI plans to tap opportunities in project finance, infrastructure sector, short-term finance and developing wide-ranging new products. The financial institution recently announced that it saw a universal banker role for itself in the future.

The forthcoming AGM will also seek shareholders' approval to re-appoint SK Kaura, KA Chaukar, Sanjay Lalbhai, BK Jhawar - who retire by rotation - as directors of the institution. The AGM would endorse a recent board decision that the concerned whole-time director will be eligible for a house rent allowance of Rs 15,000 and maintenance of accommodation including furniture, fixtures and furnishings as may be provided by the company if company-owned accommodation is not provided.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.