SH Kelkar & Co, India’s largest fragrance and flavor manufacturer, is expected to go public on October 28. The issue price of the IPO has been set in the range of INR 173-180 (USD 2.66-2.77) per share.

Through the IPO, the sellers of the Mumbai-based company – among them, private equity firm Blackstone Capital - are expected to mobilize a total INR 5.08 billion (USD 78.1 million). According to management, the net proceeds from the issue will be used primarily to retire debt.

Post-IPO, the company will be listed on the NBE and NSE, both Mumbai-based.

With more than 4,000 customers, SH Kelkar has a 12.5% market in the fragrance and flavor industry in India, and 20% in the fragrance industry alone, according to a study from Nielsen. For the 2015 fiscal year, the company generated sales of INR 8.37 billion (USD 128.7 million) and net profit of INR 644 million (USD 9.9 million).

Lionel Tixeire