Citicorp International Finance Corporation plans to acquire 14.16 per cent stake in Monnet Ispat for Rs 35.27 crore (Rs 352.7 million) to partly fund expansion of the company's Raigarh unit manufacturing sponge iron and mild steel.

Citicorp International will acquire 35.27 lakh (3.53 million) equity shares of Rs 10 each of Monnet Ispat at a premium of Rs 90 by way of fresh subscription in the company, sources said in New Delhi on Tuesday.

After this new investment, foreign equity in Monnet Ispat will increase to about 20 per cent of its total paid-up capital. The Indian Fund and Merrill Lynch Capital Markets currently hold 10.81 lakh (1.08 million) equity shares in the steel-maker. Besides, non-resident Indians and overseas corporate bodies hold another 0.15 per cent.

"Upon the proposed foreign investment, the resident shareholding in the company will get reduced to 80.31 per cent from the existing 94.45 per cent," they said.

On its part, Citicorp has invested in several companies with business interests in information technology, IT-enabled services etc. Also, one of its affiliate companies, Latin American Investment Bank Ltd, has acquired 460 convertible Euro bonds of Jindal Stainless Limited, subsequently converted into equity shares.

Jindal Stainless has furnished a no objection certificate for the proposed investment by Citicorp International.