PKH Ventures Limited IPO - GMP, Review, Price & Valuation

PKH Ventures Limited - Complete Overview

Founded in the year 2000, PKH Ventures Limited is a Mumbai-based company that operates within the service sector. With a focus on three distinct business verticals, namely Construction & Development, Hospitality, and Management Services, the company has established itself as a reputable player in the industry.

PKH Ventures Limited specializes in civil construction projects for third-party developers. They successfully completed the construction of the Delhi Police Headquarters in April 2021, featuring twin towers spanning seventeen storeys each.

The company's achievements also extend to securing two significant government projects, namely the Hydro Power Project and the Nagpur Project. Under their hospitality vertical, PKH Ventures Limited has developed two hotels in Mumbai, namely the Golden Chariot Hotel & Spa, Vasai and Golden Chariot.

Furthermore, the company manages a Boutique Hotel near Mumbai International Airport and has been operating a portfolio of 180 hotels since FY 2015. 

 

What does the company do? 

PKH Ventures Limited operates across three distinct verticals in the service sector, namely Construction & Development, Hospitality, and Management Services.

 

 

Company Products

PKH Ventures Limited thrives in the dynamic service sector, specializing in the areas of construction, management, and hospitality. With its expertise and capabilities, the company has successfully ventured into two government projects, named Hydro Power Project in Nagpur and the Nagpur Project. 

 

IPO Overview 

The Upcoming IPO of PKH Ventures Limited is scheduled to be listed on both NSE and BSE on June 30, 2023, with the closing date set for July 4, 2023. The face value of the share is Rs. 5, and the share allotment process will take place on July 7, 2023.

The share's price range is set between Rs 140 and Rs 148 per share, with a lot size of 100 shares per lot. Retail investors have the flexibility to bid for a minimum of 1 share and a maximum of 13 shares.

PKH venture share price is not yet disclosed by the company. The total issue size of the IPO is 25,632,000 shares, with 50% of the shares reserved for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

PKH Ventures Limited IPO timetable

Events	Dates
IPO Opening Date	30 June 2023
IPO Closing Date	04 July 2023
IPO Allotment Date	07 July 2023
Refund Initiation	10 July 2023
IPO Listing Date	12 July 2023

 

PKH Ventures Limited IPO Details 

IPO Opening & Closing Date	30 June 2023 to 04 July 2023
Face Value	Rs 5 per share
Issue Price	Rs 140 to Rs 148 per share
Lot Size	100 Shares Per Lot
Price of 1 Lot	Rs 14,800
Issue Size	25,632,000 Shares
Offer for Sale	18,258,400 Shares
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

PKH Ventures Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

PKH Ventures Limited IPO Reservation

Institution Portion	50%
Non-institution Portion	15%
Retail Portion	35%

 

Company Financials

Amount in Crores

Period	Mar - 21	Mar - 22	Dec - 22
Total Assets	1077.74	1102.45	1248.03
Total Revenue	264.66	245.41	155.03
Net Profit	30.57	40.52	28.64
Net Worth	184.72	327.38	356.01
Reserve & Surplus	177.03	295.68
Total Borrowing	96.69	98.24	172.01

 

Objective of the Issue 

The funds raised through the IPO will be allocated towards the following objectives:

• To facilitate the development of the Hydro Power Project, PKH Ventures Limited plans to invest in its subsidiary, Halaipani Hydro Project Private Limited.
• Allocation of funds for the Garuda Construction project, primarily to meet long-term working capital requirements.
• Allocation of funds for potential acquisitions and strategic initiatives.
• Allocation of funds towards general corporate purposes.

 

Promoters and Management of PKH Ventures Limited

Pravin Kumar Agarwal, aged 50, serves as the Chairman and Managing Director of the company, providing experienced guidance and leadership to empower the organization. He is holding a significant stake of 63.69% in the firm, his ownership will be subject to dilution following the company's IPO.

 

Peer Comparison 

PKH Ventures Limited operates across three distinct verticals, offering unique services in each domain. Currently, there are no other companies that simultaneously provide services in all three of these verticals as per the PKH Ventures DRHP.

 

IPO's Valuations

PKH Ventures Limited is preparing to launch its IPO with the objective of raising funds for multiple purposes. The IPO shares will have a face value of Rs. 5 and the issuing price is set within the range of Rs 140 to Rs 148. As of September 2021, the company's EPS stood at 4.11, the RoNW was 12.47, and the NAV amounted to 32.98. The company has not yet disclosed the PE ratio but considering the EPS the PE ratio of the company is 36.

 

Dividend Policy

The company has remained non-dividend paying for the past three financial years, and there are no assurances or guarantees that dividends will be paid in the future.

 

IPO's Strengths 

• Diversified Business Verticals.
• Experienced management.
• Government projects.
• Skilled team.

 

IPO weaknesses

• Limited market presence.
• Tough Competition in Construction & Hospitality Business Segment
• Weak Financials

 

IPO GMP

PKH Ventures IPO GMP is currently unavailable since the shares have not been listed in the grey market.

 

Conclusion 

The PKH Ventures IPO presents a promising investment opportunity; however, the exact issuing price of the shares is yet to be disclosed. It is prudent to wait for further details regarding the price band from the company before drawing any conclusions. Additionally, monitoring the GMP can help you gain valuable insights before investing in the IPO.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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