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PKH Ventures Limited IPO Issue Date Price Lot Size And More

14 Jul 2023

Introduction

Initial Public Offerings or IPOs present good opportunities for investors. There are several upcoming IPOs in 2023 in which one can invest for listing gains or long-term profits.

This article will discuss the details of one such IPO – PKH Ventures Limited. The Draft Red Herring Prospectus (DRHP) for this IPO was filed with the Securities and Exchange Board of India (SEBI) in March 2022. Here’s everything you need to know about it:

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About PKH Ventures –

PKH Ventures is a diversified company engaged in three business verticals – Construction and development, Hospitality, and Management Services. Incorporated on 23rd March 2000 as a non-government company in Mumbai, it initially offered management services at several airports in India. In 2012, the company entered the construction and development business through its subsidiary Garuda Construction.

Over the years, it has constructed several residential, commercial, and miscellaneous projects, including Delhi Police Headquarters, Halaipani Hydropower Plant, Food Park at Jalore, Cold Storage near Indore, and a Wellness Centre and Resort at Chiplun. In the hospitality sector, the company owns and operates two luxury hotels at Vasai and Andheri and a resort at Aamby Valley, Lonavala.

Besides the three verticals, the company has also shown interest in sports. In 2018, it invested in a sports franchise by taking up a cricket team in the Mumbai Premier League.

Below are the key strengths and risks that the company faces:

Key Strengths:

  • Diverse business model across multiple verticals
  • Experience of 15+ years in the management business
  • An asset-light model for the civil construction business
  • An established track record with strong financials
  • An experienced management team of a promoter and directors

Risks:

  • A significant portion of the revenue came from the construction business
  • Business is subject to seasonal and cyclical variations
  • The hydropower project faces the threats of floods, cloudbursts, landslides, etc.
  • Increase in the prices of construction materials
  • Covid-19 has adversely impacted the hospitality business

Financial Snapshot of PKH Venture Limited 

As of 24th September 2021, the company had an order book of Rs. 1,174 crores. It clocked a net profit of Rs. 31 crores for 2020-21, more than double its net profit of Rs. 14 crores in the previous financial year. The company’s revenue from operations rose to Rs. 242 crores in FY21 as against Rs. 166 crores in FY20.

The company’s profit for the six months ending September 2021 stood at Rs. 26 crores with a total revenue of Rs. 111 crores.

The table below illustrates the company’s financial snapshot as per the DRHP filed with the SEBI:

Particulars 6-month period ending Sept. 2021 FY 2020-21 FY 2019-20 FY 2018-19
Net Worth ₹ 211 crore ₹ 185 crore ₹ 149 crore ₹ 135 crore
Revenue ₹ 111 crore ₹ 242 crore ₹ 166 crore ₹ 160 crore
Profit after tax ₹ 26 crore ₹ 31 crore ₹ 14 crore ₹ 2 crore
Borrowings ₹ 106 crore ₹ 97 crore ₹ 26 crore ₹ 28 crore

PKH Ventures IPO details

According to DRHP, the IPO comprises up to 2.81 crore equity shares with a new issue of up to 1.83 shares and an offer for sale of up to 0.98 shares. The face value of each share has been fixed at Rs. 5 per share. The shares would be listed on both prominent stock exchanges in India – the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

The company plans to invest a significant portion of the funds raised through its IPO in its Halaipani Hydro Project to develop a Hydro Power Project. It also plans to invest in its subsidiary – Garuda Constructions – to meet long-term working capital requirements. Pursuing inorganic growth through acquisitions and other strategic initiatives is also on the company’s agenda.

Other details on this IPO, such as its issue date, price band, lot size, etc. has been given below --

PKH Ventures IPO Dates 30 Jun – 4 Jul 2023
Listing Dates ---
Face Value  INR 5 per share
PKH Ventures IPO Price INR 140 – 148 per share
Lot Size 100 Shares
Fresh issue 1,82,58,400 shares (up to INR 270.22 crore)
Offer For Sale 73,73,400 shares (up to INR 109.13 crore)
Total IPO size 2,56,31,800 shares (up to INR 379.00 crore)
Issue Type  Book Built Issue IPO
Listing On BSE, NSE
Share Holding Pre Issue  6,39,92,080
Share Holding Post Issue  8,22,50,480

Should you invest?

Several factors need to be considered before arriving at an answer to this question. The objective of your investment should also play a role in determining your decision. For example, if you’re looking to invest only for listing gains, you can consider the prevailing market scenario and other related factors before subscribing to an IPO.

To invest for the long term, you must analyze the issuing company’s performance in the last few years, its strengths, weaknesses, and growth opportunities to determine if it would be profitable to invest in its shares.

 

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