The company is proposing to pass a special resolution to this effect in its AGM, GSFC officials told PTI.

The resolution to be placed before the shareholders read ``subject to provisions of section 77a & 77B of the Companies Act, 1956, the company may, when and if thought fit, buy back its shares or securities, subjected to rules and approvals.''

The Government had recently amended the Company's Act to allow companies to buy back its own shares from the market after getting the shareholders approval.

The shareholders are also expected to approve an increase in its authorised capital from Rs 180 crore to Rs 360 crore.

Another resolution for issuing cumulative preferential shares of Rs 100 each aggegating Rs 127 crore will also come up forconsideration, company sources added.

The private placement is intended to be made with domestic financial institutions, banks, mutual funds and other corporate bodies.

Meanwhile, the company has concluded its talks with bidders for the capacity expansion programme at diammonium phosphate (DAP) plant in Sikka.

Test run for the anone debottlenecking plant designed at a cost of Rs 32 crore is expected to commence in two months time after commissioning the oxygen compressor.

GSFC has also submitted to the Government a comprehensive feasibility report for the urea capacity reorientation programme which is expected to be cleared soon.

The company has entered the agro service sector with the launch of various plant breeding, biofertilisers and tissue culture products.

GSFC has developed nine hybrids with high yielding of cotton with early maturity and wilt resistance. This and 19 rice breed developed by the company are in various stages of advanced testing.

The company has also standardised tissueculture protocols for seven varieties of sugarcane and field trials were just over. The company is also engaged in works in potato and banana research at its research and development wings.

GSFC has reported a gross profit of Rs 232.28 crore on a turnover of Rs 2,191 crore for the financial year ended March 31, 1999.

Only 42 per cent of the equity is being held by the Government with the remaining being with public and financial institutions.