Hind Glass finds a white knight in Singapore firm

A group of Singapore-based investors in the Indian arm of global liquor major Carlsberg has turned into a white knight for Hindusthan National Glass, the debt-ridden glass packaging major with likely fund infusion of close to Rs 1,200 crore.

Investors Yeo Soon Keong, Pawan Kumar Jagetia, Nirmal Madan Singh and Kanuriya Parliwal through their Singapore based Special Purpose Vehicle Lotus One would be picking up 34.41% stake in country's largest glass bottle maker once the Rs 393.60 crore of preference share issue is compulsory converted into equity post a lock-in period.

Following the conversion, the Kolkata-based promoters, the Somany family, would see their stake brought down from 70.73% to 39.80%.

Additionally, Lotus One might extend loans up to Rs 800 crore into HNGI, in tranches either directly or through associates to help HNGI repay most of the debt.

Among the new set of foreign promoters, Yeo Soon Keong and Pawan Kumar Jagetia serve on the Board of Carlsberg India, the liquor major, which also counts HNGI as its supplier of glass bottles, sources said.

The assurances of fund infusion by the Singapore-registered SPV come following HNGI successfully negotiating a settlement worth a little above Rs 2,000 crore in cash and in equity to lenders' consortium headed by State Bank of India.

The proceeds of equity and debt from Lotus One would be used to settle a large part of approximately Rs 2007 crore debt of all its lenders, led by SBI, as part of a deal inked with the consortium earlier in August.

A leader in glass container HNGI counts all the major FMCG companies, pharma and liquor companies as its customers.

However, a slowdown in consumption preceded by feverish expansion and acquisition resulted in high debt burden, which has been brought down to Rs 2,524 crore now.

BOTTLING A DEAL

• Investors Yeo Soon Keong, Pawan Kumar Jagetia, Nirmal Madan Singh and Kanuriya Parliwal would pick up 34.41% stake in country's largest glass bottle maker
   
• Following the share issue, the Kolkata-based promoters, the Somany family, would see their stake brought down from 70.73% to 39.80%