Introduction:
The IPO market continues to buzz with excitement as PKH Ventures Limited, a company engaged in Construction & Development, Hospitality, and Management Services, announces its upcoming initial public offering (IPO). With a wide range of operations and promising future projects, PKH Ventures presents an attractive investment opportunity for both retail and institutional investors. In this blog, we will delve into the details of the PKH Ventures IPO and explore the potential prospects it holds.
About PKH Ventures Limited:
Established in 2000, PKH Ventures Limited has made its mark in various sectors, including Construction & Development, Hospitality, and Management Services. The company's subsidiary, Garuda Construction, handles civil construction works for third-party developer projects. Notably, PKH Ventures successfully completed the construction of the Delhi Police Headquarters, an impressive project featuring twin towers with seventeen storeys each. The company has also planned forthcoming development projects in Amritsar, Punjab; Jalore, Rajasthan; Indore, Madhya Pradesh; and Chiplun, Maharashtra.
Apart from its construction endeavors, PKH Ventures has a strong presence in the hospitality sector. The company owns, manages, and operates hotels, restaurants, QSRs (Quick Service Restaurants), spas, and food product sales. Their notable ventures include the Golden Chariot Hotel & Spa in Vasai and Golden Chariot, The Boutique Hotel near Mumbai International Airport. These hotels have been successfully operational since FY 2015.
Furthermore, PKH Ventures has secured two government projects, namely the Hydro Power Project and the Nagpur Project, which are being executed through its subsidiaries and special purpose vehicles (SPVs).
PKH Ventures IPO Details:
IPO Date: Jun 30, 2023, to Jul 4, 2023
Listing Date: To be announced
Face Value: ₹5 per share
Price Range: ₹140 to ₹148 per share
Lot Size: 100 shares
Total Issue Size: 25,632,000 shares (aggregating up to ₹379.00 Cr)
Fresh Issue: 18,258,400 shares (aggregating up to ₹270.22 Cr)
Offer for Sale: 7,373,600 shares (aggregating up to ₹109.13 Cr)
Issue Type: Book Built Issue IPO
Listing Platforms: BSE, NSE
PKH Ventures IPO Reservation:
Anchor Investor Shares Offered: -
QIB Shares Offered: 12,816,000 shares (50.00%)
NII (HNI) Shares Offered: 3,844,800 shares (15.00%)
Retail Shares Offered: 8,971,200 shares (35.00%)
PKH Ventures IPO Timetable (Tentative):
Opening Date: Friday, 30 June 2023
Closing Date: Tuesday, 4 July 2023
Basis of Allotment: Friday, 7 July 2023
Initiation of Refunds: Monday, 10 July 2023
Credit of Shares to Demat: Tuesday, 11 July 2023
Listing Date: Wednesday, 12 July 2023
Cut-off time for UPI mandate confirmation: 5 PM on Jul 4, 2023
PKH Ventures IPO Lot Size:
The lot size for the PKH Ventures IPO is 100 shares.
Retail (Min): 1 lot (100 shares) - ₹14,800
Retail (Max): 13 lots (1,300 shares) - ₹192,400
S-HNI (Min): 14 lots (1,400 shares) - ₹207,200
S-HNI (Max): 67 lots (6,700 shares) - ₹991,600
B-HNI (Min): 68 lots (6,800 shares) - ₹1,006,400
PKH Ventures IPO Promoter Holding:
The promoter of PKH Ventures Limited is Mr. Pravin Kumar Agarwal.
Pre-Issue Share Holding: 100.00%
Post-Issue Share Holding: 68.84%
Financial Performance and Key Performance Indicators:
PKH Ventures has showcased a steady financial performance over the years, indicating the company's growth and stability.
Total Assets (Mar 2022): ₹1,102.45 Crore
Total Revenue (Mar 2022): ₹245.41 Crore
Profit After Tax (Mar 2022): ₹40.52 Crore
Net Worth (Mar 2022): ₹327.38 Crore
P/E (x): 23.42
Market Cap (₹ Cr.): 1217.31
ROCE: 15.00%
EPS (Rs): 6.33
RoNW: 12.38%
Objects of the Issue:
PKH Ventures plans to utilize the net proceeds from the IPO for the following purposes:
Investment in its subsidiary, Halaipani Hydro Project Private Limited, for the development of a Hydro Power Project (Civil Construction and Electromechanical Works)
Investment in Garuda Construction project to fund long-term working capital requirements
Acquisitions and other strategic initiatives
Funding expenditures towards general corporate purposes
PKH Ventures IPO Review and Subscription Status:
According to reviews, PKH Ventures IPO appears to be aggressively priced based on its FY23 financial performance. Well-informed and cash-surplus investors may consider investing in this IPO with a long-term perspective.
Conclusion:
With its diversified business operations and a portfolio of successful projects, PKH Ventures Limited presents an enticing investment opportunity through its upcoming IPO. Investors seeking exposure to the construction, hospitality, and management services sectors should carefully evaluate the prospects of PKH Ventures and make informed investment decisions. As always, it is advisable to consult with financial advisors or professionals before making any investment.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice. Investors are encouraged to conduct their own research and consult with professionals before making investment decisions.
