According to the draft offer document submitted to the Securities and Exchange Board of India, Hind Glass is offering 36,81,216 equity shares of Rs 10 at a premium of Rs 30 to its shareholders in the ratio of 1 equity share for every 2 held. The company has an enviable uninterrupted dividend payment record for 25 years.

Currently, the company's shares are listed on the stock exchanges at Mumbai and Calcutta. Post-issue, the promoters' holding in the company could go up from the present 59.2 per cent level as the promoters have expressed their willingness to pick-up the unsubscribed shares, if any.

The issue proceeds will be utilised towards Hind Glass' current plans for technical upgradation and modernisation of its manufacturing facilities and installation of power generation facility at one of the productioncentres.

Of the total capital expenditure plans, estimated at Rs 34.20 crore, Rs 10.86 crore is being financed by a loan from IDBI, Rs 3.68 crore from the Exim Bank and Rs 14.72 crore through the rights route and the balance Rs 4.94 crore through internal accrual. The IDBI loan component includes a Rs 8.51 crore foreign currency loan for procurement of technically anvanced machineries.

The Calcutta-based Hind Glass is one of the largest glass manufacturers in the country with an installed capacity of 2,35,000 tonnes per annum.

However, capacity utilisation levels have always remained one of the lowest in the industry - in fiscal 1998, its capacity utilisation was at 72 per cent level. With a reputed client base in the pharma, cosmetics, soft and hard drinks sectors, which include Pepsico, Coca-Cola, HLL and Nestle among others, Hind Glass commands a market share of around 20 per cent in glass tumblers and bottles.

During the half-year ended September 1998, Hind Glass earned a net profit of Rs 1.07crore from a total income of Rs 87.91 crore. Its performance during fiscal 1998 was better as the company's net profit was at Rs 8.18 crore from a total income of 168.1 crore.