M P Investment & Consultancy is tapping the public with a Rs 6-crore public issue at par. The company has estimated the funds requirement at Rs 6.17 crore. A sizeable portion (Rs 6 crore) is being met from issue proceeds and the promoters' contribution is only to the tune of Rs 17 lakh. Importantly, post-issue, promoters stake will come down to just 40 per cent. Of the fundsto be raised, Rs 1 crore is earmarked for bill discounting, Rs 90 lakh for inter corporate deposits, Rs 3 crore for leasing (the main activity of the company) and Rs 96 lakh in investment in shares and securities.

In the past five fiscals, the company's performance had been poor. For the fiscal 1998, the company reported a net profit of just Rs 32,000 on a total income of Rs 78.44 lakh. Interestingly, for four month-period ended July 1998, net profit saw a sudden jump to Rs 4.13 lakh on an income of only Rs 23 lakh. It may be recalled that several finance companies which are now worthless papers for investors, had tapped the public with similar trend in the past financial performance. On an equity base of Rs 3.82 crore, EPS works out to just 10 paise. After the post-issue, paid up capital will increase to Rs 10 crore. The company also suffered on the financial front mainly due to its poor investment activities. The company has invested an amount of Rs 37.86 lakh in unquoted shares. In the unlistedcompanies, the company has invested Rs 24 lakh. Against an investment of Rs 1.92 crore, the company is yet to receive any dividend.

The issue is leadmanaged by Financial & Management Services and will be listed only at Calcutta. The issue opens on January 29.