The initial public offering (IPO) of SH Kelkar & Company managed to get fully subscribed on the second day of the three-day offering. At 5 pm, the issue was subscribed 1.84 times, stock exchanges data showed. The company would now raise at least Rs 510 crore from the primary markets.
The QIBs portion was subscribed 4.68 times. A little over 2.75 crore shares were subscribed against 58.82 lakh shares reserved for this category. The retail investor book was subscribed 0.47 times.
Nearly 47 lakh shares were bid against 1 crore shares on offer. In the non-institutional investors (NII) category, 49.25 lakh shares were bid against 43 lakh shares reserved. The NII book was subscribed 1.14 times.
The company raised Rs 150 crore on Tuesday by allotting shares to anchor investors in a pre-IPO placement. The list of anchor investors includes T Rowe and Neuberger Berman, ICICI Prudential, L&T Mutual Fund and Small Cap World Fund.
The IPO consists of a fresh issue of R210 crore and an offer for sale (OFS) worth Rs 298 crore by existing shareholders, including Blackstone Capital Partners and SH Kelkar’s non-executive director Prabha Ramesh Vaze. In 2010, Blackstone had bought a 33% stake in the company for Rs 243 crore.
The company plans to use the proceeds of the issue for repayment of existing corporate debt, to infuse fresh funds into subsidiary company KV Arochem, and for general corporate purposes.
SH Kelkar manufacturers fragrance products and ingredients used in the pharmaceutical and fast-moving consumer goods sectors. Kotak Investment Banking and JM Financial are the financial advisors to the issue.
So far this calender, 16 companies have tapped the primary markets through IPOs and raised close to Rs 11,000 crore — the highest since 2010, PrimeDatabase showed.