Don't invest in the IPO of PKH Ventures without knowing these 10 details!

PKH Ventures, a Mumbai-based construction and development company, is set to launch its initial public offering (IPO) today.

PKH Ventures IPO opens today
  • PKH Ventures IPO opens today, i.e. July 30
  • The price band is 140–148 per share.
  • Risks include a lack of experience in hydropower plant development.
  • Ahead of listing, the shares are trading at a 4-9% premium in the grey market.

With the IPO market buzzing, PKH Ventures is the final company to go public in July 2023. Here are ten essential things you should know:

1. IPO dates

The subscription for PKH Ventures IPO opens today, June 30, and will close on July 4.

2. Price band

The issue price band for the IPO has been set at Rs 140–148 per share.

3. Lot size

Investors can bid for a minimum of 100 equity shares in the IPO, with subsequent bids in multiples of 100 shares.

Retail investors can invest in a maximum of 13 lots, as their investment is capped at Rs 2 lakh. High net-worth individuals can bid for a minimum of 14 and a maximum of 67 lots, as they are permitted to invest up to Rs 10 lakh.

4. IPO size

PKH Ventures IPO consists of 2.56 crore equity shares, with a fund-raising target of Rs 379.35 crore at the upper price band. This includes a fresh issue of 1.82 crore shares and an offer-for-sale (OFS) of 73.73 lakh shares by promoter Pravin Kumar Agarwal.

5. Objectives of the issue

The funds raised from the OFS will go to the selling shareholder, Pravin Kumar Agarwal.

The company itself will receive funds only from the fresh issue, which will be utilised as follows:

  • Investment in the subsidiary for the development of a hydropower project - Rs 124.11 crore
  • Working capital requirements - Rs 80 crore
  • Strategic initiatives - Rs 40 crore

6. Company profile

PKH Ventures, established in 2000, operates in three business verticals: construction and development, hospitality, and management services. Its subsidiary, Garuda Construction, handles civil construction projects. It effectively operated and supervised over 15 airports in India. It is further involved in government projects and real estate developments.

The company also owns and operates hotels, restaurants, and spas, including a luxurious resort in Aamby Valley, Lonavala.

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7. Financials

Here are the financial parameters for the year ended March 2022

  • Profit - Rs 40.51 crore, up 32.5% YoY
  • Revenue from operations - Rs 199.35 crore, down 17.5% YoY
  • EBITDA - Rs 53 crore, up 4.8% YoY
  • Operating margin - 26.57%, up 566 bps YoY

8. Shareholding

PKH Ventures is 100% owned by its promoter and promoter group. Pravin Kumar Agarwal, Chairman and Managing Director, holds the majority shareholding of 63.69%.

9. Consideration of risks 

HDFC securities identified several risks, including the company's lack of experience in developing and operating a hydropower plant, potential environmental risks, reliance on third parties for construction activities, and the impact of rising prices in various segments.

10. Important dates and GMP

  • Date of allotment: July 7
  • Date of credit to Demat accounts: July 11
  • Date of listing on stock exchanges: July 12
  • Grey market premium: 4-9%

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