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Photo Credit: Courtesy: SH Kelkar

Blackstone-backed SH Kelkar’s IPO covered 42% on day 1

28 October, 2015

The initial public offering (IPO) of S.H. Kelkar & Co. Pvt Ltd, a Mumbai-based maker of fragrances and flavours, was subscribed 42 per cent on the first day of its issue led by non-institutional investors, data available with the stock exchanges showed.

The portion reserved for non-institutional investors was fully covered at the end of day one. While qualified institutional buyers bid for 41 per cent of the portion reserved for them, retail investors’ quota was subscribed just 9 per cent.

The company opened its IPO in a price band of Rs 173-180 a share. The issue closes on October 30.

Meanwhile, S.H. Kelkar & Co raised Rs 152.45 crore ($23.4 million) from a clutch of anchor investors on the eve of the public issue. It allotted shares at the upper end of the price band to various domestic mutual funds as well as foreign institutional investors including T Rowe Price and Smallcap World Fund.

Earlier, the company had made minor changes to its IPO to raise a tad more than initially planned. The firm is now looking to raise Rs 210 crore against Rs 200 crore as proposed earlier. While its private equity investor Blackstone has maintained the terms of its shares offered for sale, the promoter Vaze family will now sell 3.3 million shares against the previous plan to offload 2.3 million shares.

For Blackstone, the world’s largest alternative assets manager, this would mark the first liquidity event in India through an IPO. Two years ago, it had explored a similar part-exit through a proposed public issue of Emcure Pharmaceuticals Ltd but later opted for a secondary deal where Bain Capital bought it out.

JM Financial and Kotak Mahindra Capital are the bankers to the issue.

Click here for more details on the company and the IPO.


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Blackstone-backed SH Kelkar’s IPO covered 42% on day 1

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