Mumbai-based SH Kelkar garnered tremendous response for its IPO. The IPO of the fragrance and flavour company concluded today with subscription of over 27 times. After placing 8.47 million shares at INR180 each with domestic mutual funds and foreign institutional investors, the company made a net offer of 20.23 million shares. This is the second highest subscription level for any IPO this year in India. In total, the IPO aimed to mobilize INR5.08 billion at the upper end of the price band of INR173 -180 per share.
According to combined data available from BSE and NSE at 7 PM, maximum subscription was in the QIB category where investors bid for over 150.3 million shares, against 5.88 million shares on offer. As a result, the category received a subscription of 25.5 times.
Other investor categories were also not behind as NII or High net worth investors bid for 376.2 million shares, causing subscription of 87.4 times.
In the retail category, the IPO was subscribed 2.1 times with total bids for 21.3 million shares against 10 million shares on offer.
| SH Kelkar IPO Bidding (as on 30 October 2015, 7 PM) | |||
| Category | Shares offered | Shares bid for | Subscription no. of times |
| Qualified Institutional Buyers (QIBs) | 5,882,397 | 150,313,520 | 25.55 |
| Non Institutional Investors (NIIs) | 4,305,583 | 376,213,600 | 87.38 |
| Retail Individual Investors (RIIs) | 10,046,362 | 21,340,960 | 2.12 |
| Total | 20,234,342 | 547,868,080 | 27.08 |
Earlier in the year, VRL Logistics received total subscription of 52.8 times which is the highest level this year. Subscription levels for SH Kelkar exceeded that of Power Mech which was subscribed 26.2 times.
Read Also: SH Kelkar IPO Review – The Scent of Money
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. Apart from raising cash for debt reduction, the IPO offered a partial exit to private equity investor Blackstone – the biggest shareholder in the company.
