S H Kelkar Rs 500-cr IPO sees huge demand; subscribed 27 times

Fragrance maker S H Kelkar & Company's Rs 500-crore initial public issue received an overwhelming response from investors and was over-subscribed 26.97 times on the last of bidding today.
The IPO received bids for 54,57,26,720 shares, against the total issue size of 2,02,34,342 shares, data available with the NSE till 1700 showed.
The qualified institutional buyers (QIBs) portion witnessed huge demand and was over-subscribed 25.5 times, sources said.
Non institutional investors category also saw tremendous response with 87 times subscription, while the quota reserved for retail investors was subscribed 1.9 times.
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 has been fixed at Rs 173-180 per equity share for the IPO. The company's public issue closes today.

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 the company.
In 2010, Blackstone had bought a 33 per cent stake in the company for Rs 243 crore.
S H Kelkar & Company has raised Rs 150 crore from anchor investors.
The IPO is being managed by JM Financial and Kotak Mahindra Capital Company. The scrip is proposed to be listed on BSE and NSE.

The company proposes to use the issue proceeds for repayment of loans as well as investment in its subsidiary K V Arochem Private Ltd and for other general corporate purposes.