It is shown that if a probability measure $ν$ is supported on a closed subset of $(0,\infty)$, that is, its support is bounded away from zero, then the free multiplicative convolution of $ν$ and the semicircle law is absolutely continuous with respect to the Lebesgue measure. For the proof, a result concerning the Hadamard product of a deterministic matrix and a scaled Wigner matrix is proved and subsequently used. As a byproduct, a result, showing that the limiting spectral distribution of the Hadamard product is same as that of a symmetric random matrix with entries from a mean zero stationary Gaussian process, is obtained.