Mumbai (Maharashtra) [India], June 26 – PKH Ventures Ltd, a prominent player in the construction, development, hospitality, and management sectors, has announced plans to raise up to ₹379.35 crores through its upcoming public offering. The funds raised from the offering will be used to support the company’s expansion strategies. Specifically, ₹124.11 crore will be allocated to equity investments in the Halaipani Hydro Power Project, ₹80 crore for equity investments in its subsidiary, Garuda Construction, to fund working capital, ₹40 crore to pursue inorganic growth through acquisitions, and the remaining funds for general corporate purposes. The public offering opens for subscription on June 30 and will close on July 4, 2023. PKH Ventures’ shares will be listed on both BSE and NSE.

Financial Highlights

Particulars 9MFY23 FY22 FY21 FY20
Total Revenue (₹ in Cr) 155.03 245.40 264.65 169.00
EBITDA (%) 41.71% 40.35% 29.71% 13.38%
PAT (%) 18.47% 16.51% 11.55% 8.34%
ROE (%) 8.04% 12.38% 16.55% 9.43%

The IPO includes the issuance of up to 2.56 crore equity shares, each with a face value of ₹5. This consists of a fresh issue of up to 1.82 crore equity shares and an offer for sale (OFS) of up to 73.73 lakh shares by the promoter group. The price band for the shares has been set between ₹140 and ₹148 per share. At the upper price band of ₹148, the company aims to raise ₹379.35 crores. The minimum lot size for the IPO application is 100 shares, with retail investors allocated a minimum of 25% of the offering, while 15% is reserved for high-net-worth individuals (HNIs) and the remaining 50% for qualified institutional buyers (QIBs).

Mr. Pravin Kumar Agarwal, the Chairman and Managing Director of PKH Ventures Ltd, shared, “The company is on a strong growth trajectory, having delivered solid operational and financial performance over the years. We are confident that, post the public offering, we will be able to execute our growth strategy in a way that maximizes value for all our stakeholders. The proceeds from the issue will further strengthen our balance sheet and support our strategic initiatives.”

Company Overview

Established in 2000, PKH Ventures Ltd operates in the construction, development, hospitality, and management sectors, utilizing an asset-light model for civil construction. Through its subsidiary, Garuda Construction, the company executes civil engineering works for third-party developers. As of March 2023, PKH Ventures had a third-party order book of ₹468.27 crore.

IPO Timeline

  • IPO Opens: June 30, 2023
  • IPO Closes: July 04, 2023
  • Price Band: ₹140-148 per share
  • Total IPO Size: ₹358.85 crore – ₹379.35 crore
  • Listing: BSE & NSE

Company Expansion Plans

PKH Ventures has been awarded multiple government initiatives, including a hydro power project in Nagpur and three government hotel development projects: Rajnagar Garhi, Pahadikhurd, and Tara Resort. The company owns and manages three hotels, five restaurants, four banquet halls, and two spas in Mumbai and nearby areas. Its growth initiatives include real estate development in Amritsar, Punjab; a food park in Jalore, Rajasthan; a cold storage facility in Indore, Madhya Pradesh; and a wellness center and resort in Chiplun, Maharashtra.

The company has shown consistent growth in both revenue and profitability. For FY22, PKH Ventures reported a total income of ₹245.40 crore and a net profit of ₹40.51 crore. In the first nine months of FY23, the company recorded ₹155.03 crore in total income and ₹28.63 crore in net profit. As of March 2022, the company’s net worth stood at ₹327.38 crore, with total assets valued at ₹1,102 crore and reserves & surplus at ₹295.69 crore.

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