Skip to content

Invest & Trade Smarter with Fisdom App

Get a FREE Fisdom account for Stocks, Mutual Funds & more, all in one place

Download Fisdom app

PKH Ventures Limited IPO Withdrawn- Know Reason for Withdrawal

Written by - Marisha Bhatt

July 5, 2023 7 minutes

The Indian indices hit all-time highs recently with the Sensex crossing the 64000 mark and Nifty crossing 19000. According to industry experts, it is the strong domestic earnings, healthy institutional flow, and macro factors that are driving the market highs. Amidst this bullish market, the newest IPO opportunity for investors was PKH Ventures Limited IPO, a company engaged in the business of Construction & Development, Hospitality, and Management Services. The company came out with its IPO on 30th June 2023. 

PKH Ventures has, however, withdrawn its initial public offering (IPO) after it failed to meet the minimum subscription requirements. The IPO was seeking to raise Rs 379.35 crore, but it only managed to attract bids for 65% of the shares on offer.

According to the Securities and Exchange Board of India (SEBI), an IPO must be subscribed to by at least 90% of the total number of shares on offer in order to be successful. However, in the case of PKH Ventures, even the qualified institutional buyers (QIBs) quota, which is reserved for institutional investors, was undersubscribed.

Here are all the details of PKH Ventures Limited IPO.

Read More: What to look for in an RHP before investing in IPO?    

IPO Details 

The key details of PKH Ventures Limited are as under. 

  1. IPO Size 

The size of the IPO and different categories of the issue are:

IPO Opening Date30th June 2023 
IPO Closing Date4th July 2023
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRe. 10 per share
IPO Price BandRs. 140 – Rs. 148 per share
IPO SizeRs. 379 crores 
Offer for SaleRs. 109 crores 
Fresh IssueRs. 270 crores
  1. IPO Dates 

The important dates for PKH Ventures Limited IPO are highlighted below:

Opening date30th June 2023
Closing Date4th July 2023
Allotment date7th July 2023
Refund Date10th July  2023
Share Credit Date11th July 2023
Listing Date12th July 2023
  1. IPO Lot Sizes 

Investors can subscribe to PKH Ventures Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

Investments in lots Minimum – 1 lotMaximum – 13 lots
Investment amount Minimum – Rs. 14,000 – 14,800Maximum – Rs. 1,92,400
Shares Minimum – 100Maximum – 1300
  1. IPO Reservation

Here’s the summary of reservation for different applicant categories in this IPO:

Category of InvestorReservation Percentage
Retail Individual Investors 35%
QIB (Qualified Institutional Buyers)50%
NII (Non-Institutional Bidders)15%

PKH Ventures Limited IPO Objectives

This IPO was combination of a fresh issue and an offer for sale. The proceeds from the issue were to be utilised in the following manner.  

  • Investment by way of equity in our subsidiary, Halaipani Hydro Project Private Limited for the development of the Hydro Power Project (Civil Construction and Electromechanical Works).
  • Investment in Garuda Construction project, for funding long-term working capital requirements.
  • The company also planned to use the funds for acquisitions and other strategic initiatives
  • The company planned to use any balance proceeds for general corporate purposes.

Top things to know about PKH Ventures Limited IPO

The company was incorporated in 2000 and is in a unique position with businesses in Construction and Development, Hospitality, and Management Services. The company’s subsidiary, Garuda Construction, handles the execution of Civil Construction projects for external developers. PKH Ventures successfully completed the construction of the Delhi Police Headquarters in April 2021 which included two seventeen-story towers interconnected by a steel bridge, featuring an impressive glass exterior. Among its future prospects, the company plans for its own upcoming development projects, such as real estate ventures in Amritsar, Punjab, a food park in Jalore, Rajasthan, cold storage facilities in Indore, Madhya Pradesh, and a wellness center & resort in Chiplun, Maharashtra.

The hospitality business of PKH Ventures focuses on owning, managing, and operating hotels, restaurants, QSRs, spas, and the sale of food products. The company also provides mechanical, electrical, and plumbing (MEP) services, including annual maintenance for its projects as well as certain third-party operation and maintenance (O&M) contracts. PKH Ventures has been owning, managing, and operating approximately 180 Mumbai Hotels since FY 2015 and has developed two big names in the hotel industry in Mumbai, i.e, Golden Chariot Hotel & Spa, Vasai, and Golden Chariot, The Boutique Hotel near Mumbai International Airport.

Financials of the company

PKH Ventures Limited’s financials are given in the table below:

Year Total Assets (Rs. in cr)Operating Revenue (Rs. in cr)Profit after tax (Rs. in cr)Basic EPS Return on Net Worth
Mar-20211,07724130Rs.5.06 16.55%
(Source: RHP)

Strengths of the company

Some of the key strengths of PKH Ventures Limited that investors can take note of are:

Business model The company has an established track record and has the asset light model of the Civil Construction Business.PKH Ventures has seen visible growth with the increase in the Third Party Developer Order Book, Government Projects, Government Hotel Development Projects, and Forthcoming Development Projects.The company is expanding its Hospitality business by developing new hotels and expanding restaurant operations. 
Other meritsPKH Ventures can leverage business growth by identifying and forming strategic joint venture relationships.The company has established relationships and a good reputation in the industry which can further enable it to build an order book.  

Risks of investment

Here are some of the risks of investing in PKH Ventures Limited IPO:

Business viability and profitabilityThe company revenues are majorly dependent on construction and development projects.PKH Ventures is dependent on third parties for the completion of their projects which can impact their ultimate revenues. The Hydro Power Project of the company faces weather-related risks like floods, cloudbursts, and similar environmental risks.
Other concernsThe company has zero experience in developing and selling a real estate project and therefore can be a big challenge for them. There can be a delay or default by the power distribution company in payment of its dues for the sale of power from the Hydro Power ProjectThere is an ongoing dispute with the Delhi Police regarding the newly developed Delhi Police Headquarters leading to a delay or cessation of annuity payments

What is the Grey Market Premium (GMP) of PKH Ventures Limited?

As of June 29th, 2023, the grey market premium for the shares of PKH Ventures Limited IPO was Rs. 8 as per market observers.

Will PKH Ventures Limited relaunch its IPO?

It remains to be seen whether PKH Ventures will try to launch its IPO again in the future. However, the withdrawal of this IPO is a setback for the company and its investors.

How to apply for PKH Ventures Limited?

Investors can invest in this IPO through the Fisdom app.

1. What is the increase in the profit margin of PKH Ventures Limited?

The profit margin of PKH Ventures has increased from Rs. 14 crores in FY 21 to Rs. 40 crores in FY 22 indicating a CAGR of approximately 42.1%

2. Why is the Hydro Power project of the company considered to be a risk?

The company has no prior experience in developing and operating a Hydro Power Project and therefore, it can be a big risk to the company’s reputation as well as its financial performance thereby leading to its viability in the long run.

3. How can HNIs apply for the PKH Ventures IPO?

HNIs can apply for the PKH Ventures IPO through the Fisdcom app under the NII category. It is important to note that investment in this category can be between Rs. 2,00,00 to Rs. 5,00,000.

4. What does a positive GMP for an IPO indicate?

A positive GMP for an IPO indicates that the investors have the potential opportunity to earn short-term returns in the form of listing gains.  

Other interesting reads

Download one of India's best wealth management apps

Join more than one million investors and take control of your wealth

Download app