SH Kelkar IPO subscribed 47% on Day 2

MUMBAI: The Rs 500-crore initial public offer of Mumbai-based SH Kelkar, a fragrance and flavour maker, was subscribed 0.47 times on Thursday, the second day of the issue, accroding to the data avialble on the NSE website. The qualified institutional buyers (QIB) portion was subscribed 0.4 times, while the non-institutional segment including rich investors and corporate, was fully subscribed. Retail investors bid for 14% of the shares set aside for them.

The company has set a price band of Rs 173-180 apiece. The offer will close for subscription on Friday, October 30. On Tuesday the company has raised about Rs 152 crore from 13 anchor investors such as T Rowe Price, Smallcap World Fund, Neuberger Berman, ICICI Prudential Mutual Fund, Birla Sun Life Mutual Fund, Axis Mutual Fund and L&T Mutual Fund among others.

Brokerages such as Reliance Securities, Aditya Birla Money and SMC Global have recommend subscribing to the issue, while Angel Broking has advised investors to avoid the issue citing steep valuations.