Swiss firm Firmenich buys Blackstone's 10% stake in SH Kelkar for Rs 242 cr

Stake was sold at Rs 173 a share; SH Kelkar stock last closed at Rs 183.5, up 20%

Swiss firm Firmenich Aromatics on Tuesday acquired private equity (PE) major Blackstone’s 10 per cent stake in SH Kelkar, a Mumbai-based fragrance company. The stake was sold at Rs 173 per share for a total consideration of Rs 242 crore. Shares of SH Kelkar last closed at Rs 183.5, with a gain of 20 per cent. Experts said the market was buoyed by the Swiss fragrance’s company’s move to buy a stake in SH Kelkar.

Blackstone had invested about Rs 200 crore in SH Kelkar in 2012 and 2013 for a 33 per cent stake. The PE firm took SH Kelkar public in 2015, in what was Blackstone’s first IPO in India. It pared its holdings in 2016 and 2017. The latest share sale marks Blackstone’s complete exit from the company. The PE firm has made nearly five times returns on its investment. SH Kelkar is one of India's largest fragrances and flavors manufacturers. It caters to domestic and global clients through operations across India, Europe, Indonesia and China.