PE-backed fragrance & flavour maker S.H. Kelkar gets SEBI’s approval for IPO

Mumbai-based firm S.H. Kelkar & Co. Pvt Ltd, a manufacturer of fragrances and flavours, has received a green signal from capital markets regulator Securities and Exchange Board of India (SEBI) for its proposed initial public offer (IPO).

The company had filed its draft red herring prospectus (DRHP) with SEBI in March this year to raise Rs 200 crore through a fresh issue besides an offer for sale of 13.2 million equity shares by Blackstone and up to 2.37 million equity shares by promoter family member Prabha Ramesh Vaze.

This is the fifth company to receive SEBI's nod for IPO this month. The others include Prabhat Dairy, Syngene International, SSIPL Retail and AGS Transact Technologies.

Since January this year, several other companies like brokerage firm SMC Global, engineered systems and solutions manufacturer Uniparts India, power infrastructure service provider Power Mech Projects, Manpasand Beverages, Navkar Corporation and Precision Camshafts have also got SEBI's green signal for proposed IPOs.

Incorporated in 1955, the firm is a manufacturer of fragrances and flavours finding applications in varied sectors such as fast-moving consumer goods (FMCG), pharmaceuticals and dairy products.

It has three manufacturing units in India (two fragrance units in Maharashtra and one bulk aroma chemicals unit in Vapi, Gujarat), and one in the Netherlands, with a total installed manufacturing capacity of over 19,819 tonnes annually.

S.H. Kelkar had previously raised funding from Wayzata Investment Partners back in 2010 but Wayzata later exited the firm.

Blackstone had invested Rs 243 crore (then $44 million) in the company in 2012, a part of it through a secondary transaction. It currently holds 33.15 per cent stake in the company. It is looking to part-exit the company through this IPO.

Of the proceeds of the fresh issue worth Rs 200 crore, the firm would use Rs 150 crore for repaying debt including that of its wholly-owned subsidiary KV Arochem Pvt Ltd.

JM Financial and Kotak Mahindra Capital are the bankers to the proposed IPO.

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