Investors led by institutional players like T Rowe Price and Smallcap World Fund Inc lapped up the city-based fragrance maker SH Kelkar & Company's public issue today with the Rs 500-crore offer getting an over-subscription of 26.97 times on the last of bidding.
The IPO received bids for 54,57,26,720 shares, against the total issue size of 2,02,34,342 shares, according to the data available with the NSE till 1700 hrs.
Non-institutional investors category saw tremendous response with 87 times subscription, while the qualified institutional buyers portion pulled in huge demand with an over-subscription of 25.5 times, and quota reserved for retail investors was subscribed 1.9 times, according to sources.
According to them, Smallcap World Fund picked up a whopping 22.13 per cent of the total portion earmarked for institutional and QIBs, while US funds major T Rowe Price snapped up 18.37 per cent and three funds from Neuberger Berman Emerging Fund group lapped up over 15.2 per cent.
The other institutional investors who lapped the issue include two funds from L&T AMC 8.21 per cent, Motilal Oswal AMC 8.14 per cent, and American Funds Insurance Series Global Smallcap fund 7.66 per cent, two funds from Birla Sunlife Trustee Company (6.6 per cent), ICICI Prudential FMCG Fund 3.94 per cent, and Axis MF 6.56 per cent, they said.
This is the fourth IPO after VRL Logistics, Power Mech Projects and Syngene International to receive such a strong response in terms of subscription so far this year.
The price band was fixed at Rs 173-180 per share for the IPO that closed today. The IPO was managed by JM Financial and Kotak Mahindra Capital Company.
Of the total, the company will raise Rs 210 crore by issuing fresh shares, while the US-based private equity giant Blackstone will mobilise Rs 290 crore by offloading its 10 per cent stake.
In 2010, Blackstone had bought a 33 per cent stake in the company for Rs 243 crore.
The issued had already raised Rs 150 crore from anchor investors.
The scrip will be listed on the BSE and the NSE.
The company proposes to use the issue proceeds to repay loans and capex for its subsidiary KV Arochem and for other general corporate purposes.
