Fragrance and flavour maker S H Kelkar & Company has set the price band at Rs 173-180 a equity share for its initial public offering (IPO) which opens for subscription on October 28.

The company plans to raise Rs 5 billion from the initial share sale which will close on October 30.

Through the issue it proposes to mop up Rs 2.1 billion by issuing fresh shares, while US-based private equity giant Blackstone will mobilise Rs 2.9 billion by offloading its 10% stake in the company.

The Blackstone Group invested in S H Kelkar in 2012 and presently holds 33.28% shareholding of the company.

The company proposes to use the issue proceeds for repayment/pre-payment in full or in part of its certain loans.

Besides, it would invest the funds in its subsidiary K V Arochem Private and general corporate purposes.

The IPO is being managed by JM Financial and Kotak Mahindra Capital Company. The shares are proposed to be listed on BSE and NSE.

S H Kelkar has four manufacturing facilities, three of which are located in India (Mumbai, Vapi and Raigad) and one in the Netherlands.