Shares of fragrance maker SH Kelkar and Co on Monday made a remarkable debut at the bourses, ending with more than 15% gains over the issue price of Rs 180 per share.
The stock listed at Rs 222, a jump of 23.33% over the issue price, on the BSE. Intraday, it soared 23.72% to touch a
high of Rs 222.70. The stock finally settled at Rs 207.30, up 15.16%.
On the NSE, the stock debuted at Rs 223.70, a sharp surge of 24.27% over the issue price, and finally ended with a robust gain of 15.69% at Rs 208.25.
Volumewise, 54.83 lakh shares of the company changed hands at the BSE and over 2.3 crore shares at the NSE during the day.
The company commands a market valuation of Rs 2,997.99 crore. 3
The Mumbai-based company recently raised Rs 510 crore through the initial public offering (IPO). The issue was subscribed nearly 27 times as the non-institutional category comprising high net worth individuals was subscribed 87.4 times . The qualified institutional buyer (QIB) portion was subscribed 26.62 times, while the retail quota was subscribed 2.14 times.
The public issue was consisted of a fresh issue of R 210 crore, and an offer for sale (OFS) worth R298 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. JM Financial Institutional Securities and Kotak Capital were the lead book managers for the issue. The company plans to utilise funds from the fresh issue towards repayment of loan and for other general corporate purpose.
SH Kelkar manufacturers fragrance products and ingredients used in the pharmaceutical and fast-moving consumer goods sectors. Its flavour products are used as raw material by producers of baked goods, dairy products, beverages and pharmaceutical products.
During the calender 2015, 18 companies have raised more than Rs 11,000 crore from the primary markets – the highest in five years. Issues of VRL Logistics, Power Mech Projects and Syngene International also received strong responses in terms of subscription.
SH Kelkar is the third company after InterGlobe Aviation and Coffee Day Enterprises to make its stock market debut this month.
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