The funds thus raised will be utilised for the company's expansion plans on all fronts. Talks were on with leading venture-fund promoters, including ICICI Venture Fund, for the purpose and a decision to this effect is expected soon.

At present, Ma Foi managing director K Pandiarajan and his family hold about 51 per cent stake in the company, while the remaining 49 per cent equity is with employees and key business clients of Ma Foi.

With the proposed infusion of Rs 1 crore from venture capitalists by private placements, the shareholding of the company's employees and clients would come down. Pandiarajan and family would, however, maintain their 51 per cent stake in Ma Foi.

The company is increasing its authorised capital to Rs 2.5 crore from the present Rs 1 crore. Its paid-up capital stands at Rs 84lakh.

According to Pandiarajan, the company plans to enter into an alliance with a world leader in the HRD consultancy business. The proposed alliance will help Ma Foi explore business opportunities in the US market. He, however, declined to name the partner as an agreement is yet to be signed.

Addressing a press conference here on Wednesday, Pandiarajan said the company had reported a 88 per cent growth in its net profit during the fiscal ended March 31, 1999. Ma Foi has posted a net profit of Rs 28.97 lakh (Rs 15.43 lakh) on a turnover of Rs 4.44 crore (Rs 2.71 crore) during the period.