SH Kelkar IPO subscribed 42% on first day


The IPO of SH Kelkar started on a positive note with 42% subscription on the first day of bidding. The IPO of the Mumbai-based fragrance and flavour company received bids for 8.4 million shares against a total of 20.23 million shares available. The company is selling shares in the price range of INR173 – 180 per share in the IPO.

A compilation of data available from BSE and NSE shows NIIs were ahead of the game with bids of 4.5 million shares, resulting in a subscription of 1.05 times. Subscription in the QIB category stood at 42% with bids of 2.4 million shares. Retail investors subscribed to 14% of their portion with bids of 1.41 million shares.

Kelkar flavours

Ahead of the IPO, the company raised INR1.52 billion from anchor investors by placing 8.47 million shares at INR180 each with domestic mutual funds and foreign institutional investors. Apart from raising cash for debt reduction, the IPO will offer a partial exit to private equity investor Blackstone – the biggest shareholder in the company.

SH Kelkar IPO Bidding (as on 28 October 2015)

S. No. Category Shares offered Shares bid for Subscription no. of times
1 Qualified Institutional Buyers (QIBs) 5,882,397 2,479,280 0.42
2 Non Institutional Investors (NIIs) 4,305,583 4,505,040 1.05
3 Retail Individual Investors (RIIs) 10,046,362 1,417,360 0.14
Total 20,234,342 8,401,680 0.42


Read Also: SH Kelkar IPO Review – The Scent of Money

SH Kelkar’s IPO coincides with the INR30 billion mega offer of InterGlobe Aviation which seems to have affected demand for this IPO. However, 42% subscription on the first day is not bad and better participation of retail investors and NIIs is worth highlighting.

Read Also: InterGlobe Aviation IPO Review: The emperor has no clothes

Most brokerage house have placed positive recommendations on SH Kelkar’s IPO while highlighting that valuations are rich. Since the market has rewarded high performers this year even with excessive valuations in the case of Manpasand Beverages, there appears to be is a strong case to apply in SH Kelkar IPO for listing gains as well as for long term investment.


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