For any IPO to sail through, the part of qualified institutional buyers has to get at least 90 percent subscription. The said condition was not fulfilled by PKH Ventures IPO.
The Rs 379.35 crore-IPO of PKH Ventures kicks off for subscription on Friday as the company looks to sell its shares in the range of Rs 140-148 apiece, with a lot size of 100 equity shares until July 4.
The initial public offering (IPO) of PKH Ventures has received a moderate response, with the issue being subscribed 21% so far. The retail category garnered 21% subscription, while the non-institutional portion received 30%. However, the part reserved for qualified institutional buyers (QIB) was subscribed just 11%. Market analysts have mixed views on the IPO, citing high valuations as a concern. The IPO comprises a fresh equity issue of up to 1.82 crore shares and an offer for sale (OFS) of up to 73.7 lakh equity shares. The company is offering its shares in the price range of Rs 140-148.
PKH Ventures, a construction and development company, will be launching its initial public offering (IPO) on June 30. The IPO will be open for subscription until July 4, with the company s shares currently trading at a slight premium of Rs 8-9 in the unlisted market. The IPO includes a fresh equity issue of up to 1.82 crore shares and an offer for sale (OFS) of up to 73.7 lakh units. The proceeds from the IPO will be used for investment in subsidiaries, acquisitions, and general corporate purposes. PKH Ventures has a diverse business model and an asset-light civil construction business.
PKH Ventures, a Mumbai-based company involved in construction, hospitality, and management services, is set to list on the bourses. Long-term investors may benefit from investing in the company if it shows stable and sustained growth. However, investors should consider its limited and chequered operating history, presence in unrelated businesses, and high valuation. The IPO consists of a fresh issue of Rs270 crore and an Offer For Sale of Rs109 crore by the promoters. The company operates in construction, hospitality, and management services, and has shown revenue growth and improved net profit. The issue seems to be fully priced, with a high price-earnings (P/E) multiple compared to peers in the construction industry.