Mumbai-based fragrance and flavour maker SH Kelkar & Company is aiming at raising Rs 510 crore through an initial public offering (IPO). The company has fixed a price band of Rs 173-180 per share. The three-day public issue will open on October 28, the company announced on Tuesday.
The IPO consists of a fresh issue of Rs 210 crore, and an offer for sale (OFS) worth R298 crore (at the upper price band) 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.
SH Kelkar & Company plans to use the proceeds from the issue for repayment of existing corporate debt, to infuse fresh funds into subsidiary company KV Arochem, and for general corporate purposes.
Keynote Corporate Services, Kotak Investment Banking and JM Financial are the financial advisors to the issue.
This will be the 17th IPO during the calendar year 2015. So far, 16 companies have tapped the primary markets to raise a little more than Rs 7,500 crore, Prime Database showed.
The primary markets have witnessed a sharp uptick in the last six months. During the last week, Cafe Coffee Day enterprises successfully raised Rs 1,150 crore through an IPO. InterGlobe Aviation, the company operating India’s largest and most profitable airline company, Indigo Airlines, has already announced its plans to raise up to Rs 3,269 crore through the primary markets.
Numerous companies, including e-commerce player Infibeam, have already received approvals from the
Securities and Exchanges Board of India to tap the primary markets and are expected to hit the markets by the end of this calendar year.