Singer (Sri Lanka) Ltd. has summoned an extraordinary general meeting on Oct. 22 to consider a resolution to capitalize Rs. 52.2 million from its share premium account to make a bonus share issue of three new ordinary shares for every eleven held.

Singer, which is among the leading quoted companies with an excellent track record on bonus issues, has made six such scrip issues since the company got a quotation on the Colombo Stock Exchange in 1982. This is the seventh.

During this period there were also two rights issues in 1993 and 1996 when new ordinary ten -rupee shares were issued at Rs. 40 and Rs. 50 each. The premia on these issues went into the share premium account, part of which is now been capitalized by the bonus issue.

The majority control of Singer (Sri Lanka) Ltd. is held by the parent company abroad that has an 80% holding of the Sri Lanka company. The local company has obtained the necessary permission from the Controller of Exchange for the proposed capitalization of reserves and the issue of new ordinary shares to the company's non-resident shareholders, Singer said.

The company is also taking advantage of next month's EGM to adopt a resolution doubling its present authorised capital from Rs. 250 to Rs. 500 million. This enables Singer to absorb the new issue and also have some slack between its issued and authorised capital for future use.