PKH Ventures’ IPO: 65% of the issue subscribed on last day

• Only 65% of PKH Ventures’ public offer was subscribed as of 5 pm on Tuesday.
• Non-institutional investors subscribed the issue 1.67 times, and the retail book was also almost fully subscribed.
• The company had plans to raise as much as ₹379 crore via the public issue.

The public issue of construction company PKH Ventures was not fully subscribed on the third and last day of its issue. Only 65% of the book was subscribed as of 5 pm on Tuesday.

While non-institutional investors subscribed the issue 1.67 times, and the retail book was also almost fully subscribed, it received tepid response from qualified institutional buyers (QIBs).

The company had plans to raise as much as ₹379 crore via the public issue, and it had fixed the price band at ₹140-148 apiece.

The issue comprises an offer for sale and a fresh issue of shares – which will be used to invest in subsidiaries, long-term working capital need, pursuing inorganic growth through and towards general corporate purposes.

PKH Ventures IPO subscription details
Source: BSE

About the company

The company is in the business of construction and development, hospitality and management services. Its net profit grew by 32% to ₹40.5 crore in FY22, as compared to the year before. Its revenue, however, fell by 17.4% to ₹199 crore in the same period.

Failure to obtain new civil contracts, delay or cessation of annuity payments, weather risks for its hydro projects are some of the risks associated with the company.

The grey market premium, i.e. the premium at which the IPO shares trade in an unofficial market, is at ₹5, as per media reports.

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