Asahi Glass will be subscribing to cumulative redeemable preference shares of Rs 100 each carrying a dividend of 10 per cent payable out of profits of the company. The shares are proposed to be redeemed in the year 2009.

Asahi Glass is expected to bring in the money shortly. The Foreign Investment Promotion Board approved the company's proposal of inducting fresh foreign capital about two weeks ago.

This the second capital infusion via the preference share route in Floatglass during thecurrent financial year. Preference share capital to the tune of Rs 40 crore was issued in April 1999. The company had also gone in for a preference share issue in the third quarter of 1997-98.

The Rs 40 crore raised from preference share issued in April 1999 was utilised to retire high cost debt. The debt burden has come down considerably which is crucial for the company to show profits. Analysts say Asahi Glass Co's continued support to Floatglass India, which has been reaffirmed with the latest investment of Rs 19 crore, is a positive signal for the company's future.

Though the company is making operating profits, the huge interest outflow resulted in a net loss in the year ended March 1999. The company had an operating profit of Rs 19.88 crore on a turnover of Rs 170 crore during the year. However, the company showed a negative bottomline due to interest burden of Rs 30 crore. In the first quarter ended June 1999, operating profit was Rs 6 crore.