PKH Ventures IPO Subscribed 30% On Day 2

PKH Ventures Ltd. is looking to raise Rs 379.4 crore through the initial public offering. Of this, Rs 270.2 crore will be raised via a fresh issue, and the rest through an offer for sale.

The maiden share sale of the company was subscribed 6% on its opening day—June 30—with retail investors leading the demand.

PKH Ventures is in the business of construction, development, hospitality, and management services. It executes civil construction works for third-party developer projects. The company has been awarded two government projects and three government hotel development projects.

• Issue opens: June 30.

• Issue closes: July 4.

• Allotment date: July 7.

• Total issue size: Rs 379.4 crore.

• Total shares: 2,56,32,000 shares.

• Face value: Rs 5 per share.

• Fresh issue: Rs 270.2 crore.

• Shares for fresh issue: 1,82,58,400 shares.

• Offer for sale: Rs 109.1 crore.

• Shares for offer for sale: 73,73,600 shares.

• Price band: Rs 140-148 per share.

• Lot size: 100 shares.

• Listing: BSE and NSE.

The net proceeds will be used for the following purposes by the company:

• Equity investment in the subsidiary, Halaipani Hydro Project Pvt. Ltd., for the development of a hydropower project (Rs 124.1 crore).

• Equity investment in the subsidiary, Garuda Construction, for funding long-term working capital requirements (Rs 80 crore).

• Pursuing inorganic growth through acquisitions and other strategic initiatives (Rs 40 crore).

• To fund expenditures for general corporate purposes.

The IPO has been subscribed 0.3 times, or 30%, as of 5:00 p.m. on July 3.

• Institutional investors: 0.11 times, or 11%.

• Non-institutional investors: 0.63 times, or 63%.

• Retail investors: 0.45 times, or 45%.