PKH Ventures IPO GMP (Grey Market Premium)

In the above case, the GMP trend shows that the grey market premium has opened at around ₹6, but now its up by ₹9. Of course, we have to await for the actual subscription numbers to flow in when the issue opens for subscription on 30th June 2023, as that would have a very significant impact on the GMP. In the past, stocks which got oversubscribed in the IPO also saw a very robust positive shift in the grey market pricing. For a start, PKH Ventures Ltd has shown very moderate traction in the grey market.

If you consider the upper end of the price band of PKH Ventures Ltd at ₹148 as the indicative price, then the likely listing price is being signalled at around ₹155 per share as of the GMP indicator on 27th June 2023. One data point to track will be the subscription update on the stock as that would chart the GMP course from here. As mentioned, the institutional QIB subscription is a key trigger for the GMP pricing.

The GMP of ₹7 on a likely upper band pricing of ₹148 indicates a listing premium of a very moderate 4.73% for PKH Ventures Ltd over the listing price. That pre-supposes a listing price of approximately ₹155 per share, when PKH Ventures Ltd lists on 12th July 2023. Of course, these are approximations, so you must keep a margin of safety. However, that would depend on the GMP sustaining over the next few days after the issue opens.

GMP (grey market price) is an important indicator, albeit informal, of likely listing price. One cannot take this price at face value However, the GMP tends to be quite dynamic and changes direction with the flow of news and events. Investors must note here that this is just an informal indication and has no official acceptance. The best thing one can do with the GMP is to observe the trend closely as that gives the best hints on listing status. Focus on the time series trend than on numbers.

PKH Ventures Ltd was incorporated in the year 2000  and is engaged in the business of Construction & Development, Hospitality, and Management Services. Broadly, its two major verticals are the construction vertical and the hospitality and facilities management vertical. PKH Ventures Ltd executes civil construction works on part of some of the biggest realtors in India. Civil construction contracts are executed by its construction arm, Garuda, which basically undertakes such third party construction projects. A recent marquee project was the development of the Delhi Police Headquarters in April 2021, entailing the construction of two towers of 17 storeys each, with complete glass façade and steel bridge connection.

PKH Ventures will also develop its own projects, including real estate development at Amritsar, food park at Jalore in Rajasthan, cold storage facility at Indore and a wellness centre at Chiplun in Maharashtra. Its second vertical of hospitality and facilities management is conducted under the aegis of PKH Ventures' Hospitality. It owns, manages, and operates hotels, restaurants, QSRs and spas. PKH Ventures Ltd also provides additional services like mechanical, electrical, and plumbing works; apart from annual maintenance contracts. It has developed the Golden Chariot Hotel & Spa, Vasai, and Golden Chariot Boutique Hotel near Mumbai International Airport. The issue is being lead managed by IDBI Capital Market Services Limited. Link Intime India Private Limited will be the registrars.