PKH Ventures withdraws Rs 379 crore IPO on muted response

PKH Ventures IPO withdrawal: Mumbai-based PKH Ventures has withdrawn its Rs 379.35 crore initial public offering (IPO) due to a subdued response from investors. The IPO of the company that operates in the businesses of construction and development, hospitality, and management services was opened for subscription on June 30. As per the subscription data available on the bourses, PKH Ventures managed to get bids for 65 per cent shares of the total offer size in the last three days.

The company's exchange filing read, "Due to the prevailing market conditions, pursuant to a resolution passed by the IPO committee of the company on July 4, 2023, the issuer has now decided to withdraw the issue in consultation with BRLMs and the registrar. Hence, the IPO of PKH Ventures Limited will be treated as withdrawn." At the end of Day 3, PKH Ventures' issue was subscribed 65 per cent. The QIB allocation, which was 50 per cent of the issue, was booked at merely 11 per cent. Allocation for retail investors was subscribed 99 per cent and HNI investors fetched 1.67 times.

Earlier, Zee Business Managing Editor Anil Singhvi had given a clear 'avoid' call on the public offer. "There is one thing that is positive about the company but a lot of negatives," he said.
Anil Singhvi pointed out that PKH Ventures has a weak set of financials, with a persistent decline in revenue. The company is barely profitable without its other income, and is facing an increase in debt, he said. Read more 

The company has three business verticals -- construction and management, hospitality, and management services. The construction projects include residential and commercial buildings and miscellaneous projects including Delhi Police headquarters, a hydropower plant in Amritsar and Nagpur, and a food park. It also owns and operates two hotels and manages one resort & spa at Aamby Valley, Lonavala.

Besides, it owns and operates certain restaurants and Quick Service Restaurants (QSRs) like Zebra Crossing, Mumbai Salsa, and Hardy's Burger under its brands. IDBI Capital Markets was the manager to the offer.

(with agency inputs)

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