S H Kelkar sets Rs 173-180 price band for Rs 500 cr IPO

Fragrance and flavour maker S H Kelkar & Company has set the price band at Rs 173-180 per equity share for its initial public offering (IPO) which opens for subscription on October 28.
The Mumbai-based company plans to raise Rs 500 crore from the initial share sale which will close on October 30.
"S H Kelkar and Company Ltd will open its issue on October 28, 2015 consisting of a fresh issue and an offer for sale at a price band of Rs 173 to Rs 180 per equity share," the firm said in a statement today.
Through the issue it proposes to mop up Rs 210 crore by issuing fresh shares, while US-based private equity giant Blackstone will mobilise Rs 290 crore by offloading its 10 per cent stake in the company.

The Blackstone Group invested in S H Kelkar in 2012 and presently holds 33.28 per cent shareholding of the company.
The company proposes to use the issue proceeds for repayment/pre-payment in full or in part of its certain loans.

Besides, it would invest the funds in its subsidiary K V Arochem Private Ltd and general corporate purposes.
The IPO is being managed by JM Financial and Kotak Mahindra Capital Company. The shares are proposed to be listed on BSE and NSE.
S H Kelkar has four manufacturing facilities, three of which are located in India (Mumbai, Vapi and Raigad) and one in the Netherlands.

The firm's fragrance products and ingredients are used as raw material in personal wash, fabric care, skin and hair care, fine fragrances and household products.
Its flavour products are used as raw material by producers of baked goods, dairy products, beverages and pharmaceutical products.