PKH Ventures Limited IPO Details

 

IPO is raining in the Indian stock market. This time PKH Ventures Limited is coming up with its initial public offering (IPO).  The IPO will be open for subscription on 30^th June -2023 and closes on 4^th July -2023.

Through the IPO, PKH Ventures Limited is looking to raise Rs.379 crores, out of which Rs.270.22 crores will be fresh issue and rest Rs.109.13 crore will be Offer for Sale (OFS).

PKH Ventures Limited – About the Company

PKH Ventures Limited was established in year 2000 by Mr. Pravin Agarwal. He is the Promoter, Chairman and managing Director (MD) of the company. Earlier they were into the business of managed service. They use to manage restaurants, bars, food stalls, lounges, parking spaces, ticket counters, etc. at the airports.

Now PKH Ventures Limited is engaged in the business of Construction & development, Hospitality and management service.

Now PKH Ventures Limited is engaged in the business of Construction & development, Hospitality and management service.

PKH Ventures execute civil construction works for third-party developer projects through its subsidiary and construction company, Garuda Construction.

Few of their well-known construction projects include Delhi Police headquarters completed in 2021.

The company is proposing to develop its own Forthcoming Development Projects, which include real estate development at Amritsar, Punjab; a food park at Jalore, Rajasthan,  cold storage park/facilities at Indore, Madhya Pradesh and a wellness center & resort at Chiplun, Maharashtra.

PKH Venture Limited Hospitality vertical is in the business of managing and operating Hotels, restaurants, quick service restaurants (QSR), spa and sale of food products.

At present , PKH Venture Limited  own two hotels with well-known  brand name -Golden chariot.

PKH Ventures Limited – IPO Details

IPO Date	30-June to 4th July- 2023
Listing Date	12-Jul-23
Face Value	₹5 per share
Price Band	₹140 to ₹148 per share
Lot Size	100 Shares
Total Issue Size	25,632,000 shares
	₹379.00 Cr
Fresh Issue	18,258,400 shares
	₹270.22 Cr
Offer for Sale	7,373,600 shares of ₹5
	₹109.13 Cr
Listing At	BSE, NSE

PKH Ventures Limited – Promoter Holding 

 

PKH Ventures Limited – Financial Highlights

 From the financial report, we can see that the assets of PKH Venture LTD have increased from Rs 244.81 Crores to Rs 1,248.03 Crores during FY20 to FY22. However, the revenue from operations has decreased from Rs 169 Crores to Rs 155.03 Crores during the same period. This decrease can be attributed mainly to the negative impact of Covid-19, especially on the hospitality sector.

Furthermore, the net profit has increased from Rs 14.09 Crores to Rs 28.64 Crores from FY20 to FY22.

Cash reserves of the company have also increased from Rs 141.89 Crores to Rs 641.5 Crores from FY20 to FY22, which is a great sign for sustainable growth of the company.

PKH Ventures Limited  - Balance sheet 

  PKH Ventures Limited -Profit & Loss Statement 

PKH Venture Limited – Strength

The company has an established track record of more than 20 years in hospitality management services, which is a core strength in the development of strategies compared to its peers. The company has shown significant growth through the increase in orders over the years and by receiving robust government projects in both the construction and hospitality sectors.

The core competency of PKH Ventures limited lies in its diverse business model, including construction & development, hospitality, and management services. This kind of diverse business model helps in reducing overall business risk.

Company uses the asset-light model for its civil construction business, which means relying on third-party suppliers for equipment and labor at the construction locations. This strategy would significantly help in the reduction of fixed costs and increase the profit margins."

PKH Venture Limited – Weakness 

The company currently has many government projects on the table, the execution may be delayed if it does not receive the approvals from the various government authorities.

The company lacks experience in developing hydropower plants. This indicates that the success rate of future projects may be lower.

The construction and development sector, which is a lucrative sector for PKH Ventures Limited, may be adversely affected if future contracts are not obtained or terminated.

PKH Venture Limited IPO Review - Grey Market Premium

According to market observer share of PKH venture Limited are commanding a premium of Rs.7 per in the primary market.