MUMBAI, May 21: The board of Sona Steering Systems Ltd, a joint venture company of Maruti Udyog Ltd (MUL) and Surinder Kapur has decided to increase the equity stake of its foreign collaborators, Koyo Seiko Ltd, Japan, from the existing 7.9 per cent to 20.5 per cent by issuing on a preferential basis the additional 12 lakh equity. The Japanese collaborator is having technical and financial collaboration with the company. The Rs 10 shares will be issued at a premium of Rs 82 per share,said a company statement.

With the equity remaining unchanged at Rs 7.6 crore the board of directors of the company, at a meeting on Monday recommended a dividend of 25 per cent for 1996-97 and set a sales target of Rs 180 crore for 1997-98.

7.80�Ut��B�Tt� the same period in the previous year. Gross profit after interest but before depreciation and tax was Rs 4.32 crore against Rs 3.44 crore in the previous year.

Profit before tax was Rs 3.31 crore against Rs 2.75 crore in 1996. Net profit was Rs 2.96 crore against Rs 2.46 crore.

Since the industrial electronics division was spun off into a separate company with effect from April 1, 1996, the current year's figures do not include the sales profit from the unit.

The figures for the six months to March 31, 1996, as well as the full year included the electronics division's sales of Rs 10.92 crore and Rs 19.34 crore.

Giving details on the options, Subberwal said, ``We are looking at preference shares and equity on preferential basis.''

``In six weeks we will identify which route to take.

And though the public issue route is open we are not sure whether we will tap the market,'' he added.

The company is looking to raise Rs 7 crore from the preference shares and about Rs 20 crore in terms of equity on preferential basis.

Meanwhile the Board has accepted the Industrial Investment Bank of India's approval for a project loan of Rs 8 crore. ``This will be disbursed in two weeks and will further speed up the Instacolour project,'' Subberwal added.

So far, the company has installed about 170 centres but has signed up for more than 200. It aims to have 653 centres by December.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.