Mumbai : Sanitary ware maker Cera Sanitaryware Ltd on Thursday announced that its board has given its approval to raise Rs.70.6 crore by issuing shares to India 2020 Fund II, the second fund of private equity (PE) investor Lighthouse Advisors India Pvt. Ltd, the firm said in a filing to BSE.

Cera will issue 351,000 equity shares to the fund at a price of Rs.2,011.50 apiece on a preferential basis, the firm said in the filing.

The firm’s board also decided to increase the aggregate limit of foreign institutional investor (FII) holding in the company from 24% to 36%. Both decisions are subject to shareholder approval.

India 2020 Fund II is a $125 million PE fund that invests in high-growth, mid-size companies in India. Lighthouse invests in diverse sectors such as healthcare, hospitality and agribusiness, among others, and has previously invested in companies such as biscuit maker Unibic Foods India Pvt. Ltd, agrichemicals firm Dhanuka Agritech Ltd and snacks firm Bikaji Foods International Ltd.

Cera Sanitaryware is involved in the business of manufacturing sanitaryware products such as ceramic sinks, wash basins, faucets, etc., and wall and floor tiles, an industry that has witnessed a significant surge in stock prices in the recent months due to the Indian government’s focus on sanitation through the Swachh Bharat programme.

Recently, PE firm WestBridge Capital Partners sold part of its stake in the company.

In February 2014, another PE firm Creador had invested in sanitaryware manufacturer Somany Ceramics Ltd.

Shares of Cera Sanitaryware closed at Rs.2,094, down 1.52%, on BSE, while the benchmark Sensex closed at 29,681.77 points, up 0.41%.

(As published in live mint 30th Jan 2015)