HSIL Successfully Raises `150 Cr Through QIP Placement

Oct. 14, 2010 - PRLog -- HSIL Ltd., India’s leader in Building Products and Container Glass, has successfully concluded the capital-raising exercise of `150 crores through private placement of 1.10 crore shares at a price of `136.10 per share.  The new shares issued under QIP have been listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).  
The first QIP offering, an important capital market initiative by the Company, was very well received as seen by the high-levels of subscription and strong interest from international and domestic Institutional Investors.  The primary investors include: Legg Mason Global Funds PLC, Batterymarch Financial Management Inc, Blackstone, GMO, and CALPERS  from the US; Royal Bank of Scotland PLC A/C Jupiter Asset Management from Europe.  SMIFS Capital Markets Limited acted as the book-running lead manager for this QIP Placement.
The funds raised will be effectively deployed as part of the `350 crore business expansion objective.  The primary intent is to expand capacities for the Building Products Division as well as the Container Glass Division.  State of the art manufacturing facilities for sanitaryware and chrome-plated bathroom fittings will strengthen the market leadership.  Container Glass capacity expansion is proposed for expanding domestic market share.  
Speaking on the occasion, Mr. Sandip Somany, Joint Managing Director of HSIL Ltd. said, “Successful conclusion of this Qualified Institutional Placement reiterates the trust and confidence that the investors repose on us.  These funds will pave the way for accelerated growth of HSIL through capacity expansions within the existing business interests.  We look forward to accelerated business growth, with target revenue of `3000 crores in the next five years.  These strategic activities and initiatives will benefit all stakeholders.”
HSIL Ltd. closed the FY 2010 with sales of `836 crores, highest in the company’s history.  This depicted a sales increase of 29% leading to an EBITDA growth of 37% to `155 crores.  EBITDA margin jumped substantially by 116 basis points to 19.63%.  On the occasion of celebrating 50 years of incorporation in 2010, the company announced a 100% dividend.
With the acquisitions of Barwood Products of UK, and Chrome-Plated Bathroom Fittings division of Havells India, coupled with the launch of ceramic tiles and dedicated value-added customer services, the Building Products Division has significantly expanded its product & service offerings to the market.  The Container Glass division benefits from the newly established state-of-the-art plant in Andhra Pradesh.  This plant about doubled the existing capacity of the Container Glass division, while providing higher-value products to its institutional customers.

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HSIL Limited (Formerly Hindustan Sanitaryware & Industries Limited) is the flagship Company of the Somany Group. HSIL Limited specializes in Manufacture and Distribution of Sanitaryware, Faucets, Tiles, Wellness & Kitchen Appliances.