PKH Ventures IPO withdrawn

Published on Jul 05, 2023 13:14

The initial public offer (IPO) of PKH Ventures received bids for 1,67,24,300 shares as against 2,56,32,000 shares on offer, according to stock exchange data on Tuesday (4 July 2023). The issue was subscribed 0.65 times.

Retail investors portion was subscribed 99% and non institutional investors category was subscribed 1.67 times. While QIB portion was subscribed 11%.

The exchanges notified that "on account of non-fulfilment of commitment by the Qualified Institutional Buyers (QIBs), 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 Hence the IPO of PKH Ventures Limited will be treated as withdrawn."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 the Securities and Exchange Board of India, every company needs a minimum subscription of 90% of the issued amount on the date of closure. In the event of this not happening, the company refunds the entire subscription amount it received.

The IPO was open for bidding between 30 June and 4 July 2023. The price band of the IPO was fixed at Rs 140-148 per share.

The IPO comprised a fresh issue of equity shares worth up to 1,82,58,400 equity shares and an offer for sale of up to 73,73,600 equity shares by its promoter, Pravin Kumar Agarwal.

Out of the net proceeds from the fresh issue, Rs 124.12 crore was planned to be used towards investment by way of equity in Halaipani Hydro Power Project, Rs 80 crore was to be used towards investment by way of equity in Garuda Constructions for funding long-term working capital, and Rs 40 crore was planned for inorganic growth through acquisition & other strategic initiatives, with the balance for general corporate purposes.

PKH Ventures is primarily engaged in the business of construction and development (C&D), hospitality, and management services. The company reported a net profit of Rs 28.64 crore and net sales of Rs 125.46 crore for the nine months ended 31 December 2023.