PKH Ventures withdraws IPO after tepid demand from investors

• PKH Ventures decided to withdraw its public issue in consultation with book running lead managers and the registrar
  
• Only 65% of PKH Ventures’ public offer was subscribed on its last day on Tuesday.
  
• Even as retail and non-institutional investors evince a fair amount of interest, only 11% of the QIB portion was subscribed.
  
• The company had plans to raise as much as ₹379 crore via the public issue.
  

Construction and hospitality firm PKH Ventures has withdrawn its initial share sale amid disappointing participation from investors, particularly from institutional buyers, over a three-day period.

Its public issue was not fully subscribed on the third and last day of its issue. Only 65% of the book was subscribed.

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 BRLM (Book Running Lead Manager) to the PKH Ventures informed the exchange that on account of non-fulfilment of commitment by the Qualified Institutional Buyers, 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"Hence the IPO of PKH Ventures Limited will be treated as withdrawn," according to an update on the NSE.


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.

PKH Ventures IPO subscription details

Category	No. of times subscribed
QIBs	0.11
Non institutional investors	1.67
Retail	0.99
Total	0.65

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.

(With inputs from PTI)

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