PKH Ventures calls off public issue on muted response from QIBs

As per the subscription data available on the exchanges, it managed to get bids for 65 percent shares of the total offer size in the final three days.

PKH Ventures called off its public issue on July 4, its final day of bidding, following muted response from qualified institutional investors.

As per subscription data available on the exchanges, it managed to get bids for 65 percent shares of the total offer size in three days.

The offer, which was floated on June 30, received decent response from high net worth individuals and retail investors, the portions set aside for them being subscribed 1.67 times and 99 percent. Qualified institutional investors, however, bought only 11 percent shares of the allotted quota.

It is to be noted that the qualified institutional buyers’ portion needs to get at least 90 percent subscription for any public offering to sail through. PKH Ventures IPO couldn’t manage to deliver on this condition.

"On account of non-fulfilment of commitment by the qualified institutional buyers (QIBs), the issuer (PKH) has now decided to withdraw the issue in consultation with BRLMs (book running lead managers) and registrar," the company stated in a filing to exchanges. “Hence, the IPO of PKH Ventures will be treated as withdrawn.”

The Mumbai-based construction and development company intended to raise Rs 379 crore through its maiden public issue of 2.56 crore equity shares at the upper price band. This offer comprised 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 of the issue was set at Rs 140-148 per share.