PKH Ventures IPO Subscribed 6% On Day 1

PKH Ventures Ltd. launches its initial public offering on June 30. The company is looking to raise a total of Rs 379.4 crore through a mix of fresh issues and offers for sale, of which Rs 270.2 crore will be raised through a fresh issue.

The company is in the business of construction, development, hospitality, and management services. It executes civil construction works for third-party developer projects and 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: 109.1 crore.

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

• Price band: 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 Private 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 had been subscribed 0.06 times, or 6%, as of 5 p.m. on June 30.

• Institutional investors: 0.

• Non-institutional investors: 0.10 times or 10%.

• Retail investors: 0.13 times or 13%.