PKH Ventures continues to see muted response on the last day. Check subscription, GMP and other details
The non-institutional investors' portion was oversubscribed at 1.1 times, but the retail demand lagged as the category was subscribed 71%. The portion reserved for qualified institutional buyers (QIB) was subscribed just 11%. According to market analysts, the grey market premium (GMP) of the company's shares fell from the previous day to Rs 9.
Analysts have mixed views on the IPO on lofty valuations, despite the cushioning of the diversified business model and asset light construction segment. «On the upper end of the price band, the issue will be valued at 24.8x of annualized FY23 earnings, which we believe is richly valued. We, thus, recommend an “Avoid” rating for the issue,» said stoxbox.
Meanwhile, Hensex Securities advised investors to apply for the IPO from a medium- to long-term perspective. The IPO comprises fresh equity issue of up to 1.82 crore share and an offer for sale (OFS) of up to 73.7 lakh equity shares by selling shareholders. Under the OFS, promoter Pravin Kumar Agarwal will offload 73.7 lakh equity shares.
The company is offering its shares in the price range of Rs 140-148. About 50% of the net offer is reserved for the QIB portion, 15% for the NII category and 35% for retail investors. PKH Ventures is in the business of construction and development, hospitality and management services.
The civil construction business is executed by its subsidiary and construction arm, Garuda Construction. The company does its civil construction works for third party developer projects and has also been awarded two government and three government hotel development projects. It had an order book of Rs 560 crore as of March 2022.
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