PKH Ventures Calls Off IPO Amidst Insufficient Investor Participation
- ByStartupStory | July 5, 2023
PKH Ventures Limited, a prominent construction and development company, announced the withdrawal of its initial public offering (IPO) on Wednesday due to tepid response from qualified institutional buyers (QIBs). The IPO, which was open for subscription from June 30 to July 4, fell short of meeting the minimum subscription requirement set by QIBs.
At the end of the bidding process, the IPO received a subscription of 65%, with the QIB portion garnering only 11% subscription, well below the minimum requirement of 90%. The employee portion did not receive any subscriptions. As a result, PKH Ventures, in consultation with IDBI Capital Markets and Securities Ltd, made the decision to withdraw the IPO through a resolution passed by the company’s board on July 4.
In its statement to the stock exchanges, PKH Ventures stated, “Due to non-fulfilment of commitment by the Qualified Institutional Buyers (QIBs), the company and promoter selling shareholder… has decided to withdraw the IPO.”
The IPO offered up to 18.26 million shares as a fresh offering, along with an offer for sale of up to 7.37 million shares by the company’s promoter, Pravin Kumar Agarwal, who currently holds a 63.69% stake in the firm. The IPO proceeds were intended to be utilized for investment in construction subsidiaries, inorganic growth through acquisitions, and general corporate purposes.
The price band for the proposed initial public offer was set at ₹140-148 per equity share. IDBI Capital acted as the sole book running manager for the issue, and Link Intime India Private Limited served as the Registrar to the offer.
PKH Ventures boasts a diversified portfolio of projects encompassing residential, commercial, and industrial buildings. Additionally, the company has a presence in the hospitality sector, with a portfolio of hotels and resorts.
The withdrawal of the IPO highlights the challenges faced by PKH Ventures in garnering sufficient investor interest and meeting the subscription requirements. The company will now reassess its options and strategize for future fundraising initiatives.
Follow Startup Story
Related Posts
