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PKH Ventures IPO has been withdrawn due to tepid response from Qualified Institutional Buyers (QIB).
PKH ventures plans to raise Rs 379.35 crore through an initial pulic offering (IPO). The subscription for the IPO opens on June 30 and closes on July 4, 2023. The price band is fixed at Rs 140-148 per share.
The IPO comprises of offer for sale of about 2.56 crore shares aggregating up to Rs 270.22 crore and fresh issue of shares worth Rs 109.13 crore. The face value is set at Rs 5 per share.
Company Summary
PKH Ventures is involved in business of construction & development, hospitality and management services. The civil construction business is executed by the company’s subsidiary and construction arm, Garuda Construction. The company executes civil construction works for third party developer projects and has been awarded two government projects and three government hotel development projects. As of March 15, 2023, Garuda Construction’s third party developer order book was Rs 468.28 crore.
Further, the company has received two government projects i.e. development of a 16 MW hydropower plant at Halaipani, Anjaw district in Arunachal Pradesh and development of 42.42 acres entertainment centre at Ambazari, Nagpur. The total cost of developing the two projects is estimated at Rs 213.83 crore.
The company’s hospitality vertical owns, manages and operates hotels, restaurants, quick service restaurants, spas and sale of food products. The company also proposes to develop upcoming development projects, which includes real estate development, agro processing cluster, cold storage park/facilities and a wellness centre. The company has expanded their hospitality operations into the restaurant space in Mumbai by opening restaurants in the year 2013 under the brand name ‘Golden Chariot’ and ‘Balaji’.
As a part of our management services, currently, the company is providing services for the annual maintenance of the Delhi Police Headquarters as per the agreement.
Company Strengths
- Consistent growth through increasing third party developer order book, government projects, government hotel development projects and other development projects.
- Diverse business model and established track record.
- Asset light model of civil construction business.
- Strong financial performance and healthy balance sheet.
- Experienced promoter and qualified management team.
Company Financials
Period | 9MFY23 | FY22 | FY21 | FY20 |
Total Assets (Rs in crore) | 1,248.03 | 1,102.45 | 1,077.04 | 244.81 |
Total Revenue (Rs in crore) | 155.03 | 245.41 | 264.66 | 169 |
EBITDA (Rs in crore) | 64.67 | 99.03 | 78.62 | 22.62 |
EBITDA Margin | 41.71% | 40.35% | 29.71% | 13.38% |
Profit After Tax (Rs in crore) | 28.64 | 40.52 | 30.57 | 14.09 |
PAT Margin | 18.47% | 16.51% | 11.55% | 8.34% |
Return on Equity | 8.40% | 12.38% | 16.55% | 9.43% |
Return on Capital Employed | 7.74% | 15% | 12.94% | 10.61% |
Debt Service Coverage Ratio | 1.11 | 2.16 | 3.05 | 2.63 |
Purpose of the IPO
- The proceeds from offer for sale of 73,73,600 will go to the selling shareholders and the company will not receive any proceeds from offer for sale.
- The company plans to utilize the net proceeds from fresh issue of shares by investing in their subsidiary, Halaipani Hydro Project, for development of hydro power project aggregating to Rs 124.12 crore.
- The net proceeds from fresh issue of shares will also be utilized for investing in another subsidiary, Garuda Construction, for its long-term working capital requirements amounting to Rs 80 crore.
- The company plans to use Rs 40 crore from the net proceeds of fresh issue of shares for inorganic growth through acquisitions and other strategic initiatives.
- It also intends to use the net proceeds for general corporate purposes.
Company Promoters
Pravin Kumar Agarwal is the promoter of the company.
IPO Details
IPO Subscription Date | June 30 to July 4, 2023 |
Face Value | Rs 5 per share |
Price Band | Rs 140 to Rs 148 per share |
Lot Size | 100 shares |
Total Issue Size | 2,56,32,000 shares aggregating up to Rs 379.35 crore |
Fresh Issue | 1,82,58,400 shares aggregating up to Rs 270.22 crore |
Offer For Sale | 73,73,600 shares aggregating up to Rs 109.13 crore |
Issue Type | Book Built Issue IPO |
Listing | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 100 | Rs 14,800 |
Retail (Maximum) | 13 | 1,300 | Rs 1,92,400 |
S-HNI (Minimum) | 14 | 1,400 | Rs 2,07,200 |
S-HNI (Maximum) | 67 | 6,700 | Rs 9,91,600 |
B-HNI (Minimum) | 68 | 6,800 | Rs 10,06,400 |
Allotment Details
Event | Tentative Date |
Allotment of Shares | July 7, 2023 |
Initiation of Refunds | July 10, 2023 |
Credit of Shares to Demat Account | July 11, 2023 |
Listing Date | July 12, 2023 |
To check allotment, click here