KOLKATA -- The Somany family, founders of India's largest glass-container manufacturer, Hindusthan National Glass and Industries, is looking to sell about 7.5% of the company's shares to invest in an "unrelated business." Hindusthan National Glass controls about 55% share of the glass-container market in India.
The proposed share sale may raise around 1.35 billion rupees ($30 million) at current prices, paring the family's holding to 62.5% of the company. The stake sale is expected to be concluded in the current fiscal, said Laxmi Narayan Mandhana, the company's chief financial officer. Details about what the money would be used for was not disclosed.
The company also is looking for investors to sell an additional 7.5% stake from its 14.64 million in treasury stocks, he said. The inclusion of these treasiry stocks -- or the company shares held through a trust account for 16.76% of the equity capital -- puts the total stake sale at 15%. The company hopes this size will make it an attractive buy for private equity firms.
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