PKH Ventures pulls out Rs 379 crore IPO after lackluster response

5 Jul 2023 , 09:56 AM

PKH Ventures, a construction and hospitality firm, has decided to withdraw its initial public offering (IPO) after receiving a lukewarm response from investors throughout the bidding period, which concluded on July 4th. Subscription data available on BSE indicates that the IPO received 65% subscription from retail and non-institutional investors. The retail portion was oversubscribed by 1.67 times, while the non-institutional portion was oversubscribed by 0.99 times. However, qualified institutional investors only subscribed to 0.11 times the allotted shares.

According to SEBI guidelines, for an IPO to proceed successfully, the qualified institutional buyers (QIBs) portion must attain a minimum subscription of 90%. Unfortunately, PKH Ventures fell short of meeting this requirement.

In a statement to the exchanges, PKH Ventures stated, ‘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. Hence, the IPO of PKH Ventures will be treated as withdrawn.’

The IPO consisted of fresh equity shares of up to 1.82 crore and an offer for sale (OFS) of up to 73.7 lakh equity shares by selling shareholders. PKH Ventures had offered its shares in the price range of Rs 140-148.