PKH Ventures Withdraws Rs 379 Cr IPO Over QIB Non-Response
PKH Ventures, a construction and development company based in Mumbai, made the decision to withdraw its IPO on July 4, as QIB Non-response.
According to subscription data available on the exchanges, the public issue, which opened for subscription on June 30, received bids for only 65 percent of the total offer size during the last three days.
While high net worth individuals and retail investors demonstrated a decent response, with subscription levels reaching 1.67 times and 99 percent respectively for their allocated portions, QIBs only purchased 11 percent of the allotted quota.
For an IPO to be successful, the portion set aside for qualified institutional buyers typically needs to achieve at least 90 percent subscription. However, PKH Ventures’ IPO failed to meet this requirement.
In a filing to the exchanges, the company stated, “Due to the non-fulfilment of commitment by the qualified institutional buyers (QIBs), the issuer (PKH) has decided to withdraw the issue in consultation with the book running lead managers (BRLMs) and registrar.”
As a result, the IPO of PKH Ventures will be treated as withdrawn.
PKH Ventures had planned to raise Rs 379 crore through its inaugural public issue, offering 2.56 crore equity shares at the upper price band. The offering included a fresh issue of Rs 270.2 crore shares and an offer for sale of Rs 109.1 crore shares by promoter Pravin Kumar Agarwal.
The price band for the issue was set at Rs 140-148 per share.
About PKH Ventures:
Founded in 2000, PKH Ventures Limited is a company engaged in diverse business sectors such as Construction & Development, Hospitality, and Management Services. Among its primary activities is the execution of Civil Construction projects on behalf of Third Party Developers. This specific segment of the company’s operations is conducted through its subsidiary and construction division, Garuda Construction.
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