One of the world's largest manufacturers of home appliances, the Swedish-based promoter has already received the requisite FIPB approval for the same and plans to subscribe upto 90 per cent of the unsubscribed portion of rights shares.

Through the current issue, Intron Ltd is offering 1.63 crore equity shares, aggregating Rs 16.27 crore, in the ratio of one share for every share held in the company. The company has already filed the offer document with the SEBI and the issue is expected some time middle of this year.

The company is doubling its equity base from Rs 16.27 crore to Rs 32.64 crore with the main objective of meeting itslong-term working capital requirements. Meeting the working capital requirements through fresh issue of equity will enable the company to reduce its dependence on short-term high cost funds. Intron has estimated its long-term working capital requirements at Rs 20 crore.

The company, which is into the manufacture of fully automatic front loading washing machines, has been mired deep into the red. Intron became a sick unit in June 1994 and was referred to the BIFR. However, since the company was not in commercial operation for five years (the minimum period required for registration as a sick unit), BIFR had rejected Intron's application.

With the object of reviving it, Intron had entered into financial and technical collaboration with AB Electrolux in 1995.

As on March 31, 1997, Intron's accumulated losses stood at Rs 5.22 crore which exceeded its net worth. During the fiscal 1997, the company manufactured 11.72 lakh washing machines and traded 3000 units. During the fiscal 1997, Intron Ltd had obtaineda foreign currency loan of Rs 10.83 crore. Since the company's product has high import content, Intron critically needs foreign exchange, especially in the absence of any exports.

As on March 31, 1997, Intron's loss per share stood at Rs 4.13 and book value was a negative Rs 4.94. After the fresh equity infusion, the net asset value will turn positive at Rs 1.1. The return on networth for the fiscal 1997 stood at a negative 74 per cent.

In January 1998, 5.2 lakh equity shares of Rs 10 had been allotted to AB Electrolux on conversion of 50,000, 10 per cent cumulative convertible preference shares of Rs 100 each held by IFCI. This raised the Swedish-based promoter's stake in the company to the current level of 51 per cent. Intron has already entered into an agreement with Maharaja International Ltd to act as its distributor. MIL operates through 17 branches spread across the country.

Ind Global Financial Trust is the lead manger to Intron's rights issue. The company's shares are listed at BSE and DSE.