Maharashtra government-backed non-banking financial company, Sicom, is looking to raise around Rs 400 crore to help it come out of the lending curbs clamped on it by the Reserve Bank, a top official said Tuesday.

The company, focused on financing infrastructure and industries in the state, is expected to seek cabinet approval for fund-raising as soon as the model code of conduct ends.

“From the government we are looking at Rs 100 crore in perpetual debt. We are also expecting to get Rs 150 crore as equity, on which we will pay dividend to the state, and another Rs 150 crore from MIDC (as a private equity investment),” Sicom Managing Director, Kavita Gupta, told presspersons on the sidelines of an NBFC event organised by CII.

She said the RBI had put restrictions on the company last June after its capital adequacy ratio fell below the mandated 15 per cent, the leverage ratio rose more than 7 per cent and non-performing loans worsened.

According to the FY18 annual report, its net NPA stood at 33.77 per cent, down from 35.79 per cent in March 2017.

Gupta said as of March 2019, the capital adequacy ratio improved to over 15 per cent and the leverage ratio came down to 6.6 per cent.

“The Reserve Bank has asked us to bring in more capital to come out of the lending restrictions, and I estimate that in the next two months, we will be out of it,” she said.

She further said since the company could not lend, it has been focusing on recoveries, which was to the tune of Rs 250 crore in FY19.

As of March 2018, Maharashtra owned 49.07 per cent of its equity. Other shareholders include affiliates of JC Flowers & Co (36.63 per cent), an affiliate of Shinsei Bank of Japan (8.53 per cent), corporates (4.01 per cent) and the employees welfare trust held 1.76 per cent.