PKH Ventures withdraws Rs 379 crore IPO amid poor response

PKH Ventures has withdrawn its Rs 379.35 crore initial public offering (IPO) due to poor response. According to Sebi rules, any IPO requires at least 90 per cent overall subscription for being able to sail through. But in the case of PKH Ventures, even the  qualified institutional bidders (QIBs) quota went undersubscribed.

"Due to the prevailing market conditions, pursuant to a resolution passed by the IPO committee of the company on July 04 2023 the issuer has now decided to withdraw the issue in consultation with BRLMs and registrar. Hence the IPO of PKH Ventures Limited will be treated as withdrawn," the company's exchange filing said.

IDBI Capital Markets and Securities is the sole book-running lead manager to the issue, while Link Intime India has been appointed as the registrar for the issue.

At the end of Day 3, the issue was subscribed 65 per cent. The QIB allocation, which was 50 per cent of the issue, was booked merely 11 per cent. However, allocation for retail investors was subscribed 99 per cent and HNI investors fetched 1.67 times bidding.

The IPO of PKH Ventures was subscribed only six per cent during the first day, while it ended the second day with a 31 per cent subscription. Interestingly, the company did not have any portion for anchor investors.

Incorporated in 2000, PKH Ventures is engaged in the business of construction and development, hospitality, and management services. PKH Ventures executes civil construction works for third party developer projects through its Subsidiary and construction arm, Garuda Construction.

PKH Ventures offered its shares in the Rs 140-148 price band, with a lot size of 100 equity shares. The issue was opened for bidding between June 30 and July 4.

 The issue included 1,82,58,400 fresh equity shares amounting to 270.22 crore, while an offer-for-sale (OFS) of up to 73,73,600 equity shares amounting to Rs 109.13 crore by its promoter Pravin Kumar Agarwal, the sole selling shareholder.

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