S H Kelkar & Company share price jumped more than 7 percent in the morning session on November 10, continuing the rally in the stock that has surged over 34 percent in the last five days after Swiss firm Firmenich bought Blackstone's 10 percent stake in the fragrance maker.
“Blackstone has sold its existing 10.4 percent stake in the firm via a block deal and clocked an overall return of 4.5x,” sources said on November 9.
“The block deal was struck at Rs 173 per share, representing a 13 percent premium to the previous day’s closing price. A total of 14 million shares were traded,” sources told Moneycontrol.
"Firmenich is an international flavours and fragrances business that has acquired stake in the company. Promoter bought 2 percent stake last year when the stock price declined. Promoters sold some stake in the company when market conditions improved," SH Kelkar CEO and Director Kedar Vaze told CNBC-TV18.
"Blackstone had right to sell their stake to a strategic buyer. We were aware that Blackstone was looking at an exit."
Catch all the market action on our live blog
Commenting on the exit, Amit Dalmia, Operating Partner, Blackstone India, said SH Kelkar had been a “phenomenal investment for Blackstone and was our first IPO in India”.
In 2012, Blackstone picked a 33 percent stake in SH Kelkar for around Rs 243 crore, which was later diluted via two block deals in 2016 and 2017.
Following Blackstone’s entry, significant investments were made not only to strengthen processes and IT frameworks but also to pursue inorganic growth with six strategic acquisitions. The private equity major took the firm public in 2015.
“Based on the success of this investment, we developed high-conviction in the B2B2C space and have since committed over $2 bn in this space in Asia, including our investments in EPL and Piramal Glass,” Dalmia said.
The stock was trading at Rs 195.40, up Rs 11.70, or 6.37 percent, at 10.19 am. It has touched a 52-week high of Rs 207.30. It has touched an intraday high of Rs 207.30 and an intraday low of Rs 181.15.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
