The IPO of PKH Ventures had a decent response on its first day, with only 6% of the shares being subscribed. Retail investors showed a subscription rate of 13%, while non-institutional investors subscribed to only 10% of the shares. Surprisingly, there were no bids from qualified institutional buyers. In the unlisted market, PKH Ventures' shares are trading at a slight premium. Analysts have expressed mixed opinions about the IPO due to high valuations. PKH Ventures' initial public offering (IPO) comprises a combination of newly issued equity and shares being sold by existing shareholders. PKH Ventures is actively involved in various sectors, including construction, development, hospitality, and management services.
On the first day of its IPO, PKH Ventures witnessed a subscription rate of only 6%.
The retail category had a subscription rate of 13%, while the non-institutional category saw minimal bids at just 10%. Surprisingly, there were no bids from qualified institutional buyers.
In the unlisted market, PKH Ventures' shares are commanding a marginal premium of Rs 10.
Analysts have varied views on the IPO due to its high valuations, despite the company's diversified business model and asset-light construction segment.
"At the upper end of the price band, the issue is valued at 24.8x of annualized FY23 earnings, which we believe is overvalued. Therefore, we recommend avoiding the issue," stated Stoxbox.
On the other hand, Hensex Securities has recommended that investors consider applying for the IPO with a medium to long-term outlook.
The initial public offering (IPO) comprises a fresh issuance of up to 1.82 crore shares and an offer for sale of up to 73.7 lakh equity shares by current selling shareholders.
Promoter Pravin Kumar Agarwal will be offloading 73.7 lakh equity shares under the OFS.
The price range for the shares is set at Rs 140 to 148. The QIB portion has reserved 50% of the net offer, while the NII category has 15% and retail investors have 35%.
Prior to the IPO opening, PKH Ventures' shares were trading at a slight premium of Rs 8-9 in the unlisted market.
PKH Ventures are actively involved in a range of sectors, encompassing development, construction, hospitality, and management services. Its subsidiary and construction arm, Garuda Construction, handles the civil construction business.
The company undertakes civil construction works for third-party developer projects and has been awarded two government projects and three government hotel development projects. As of March 2022, it had an order book of Rs 560 crore.
The proceeds from the fresh issue will be utilized for equity investment in its construction subsidiaries, inorganic growth through acquisitions, and other general corporate purposes.
The IPO is being managed by IDBI Capital Markets as the book-running lead manager, with Link Intime India serving as the registrar.