PKH Ventures IPO: Construction and Development Company Opens Public Offering for Bidding
PKH Ventures Limited has commenced its initial public offering (IPO) today, inviting public subscription until July 4, 2023. In addition to its construction and development activities, the company also operates in the hospitality and management services sectors. Prior to the IPO launch, PKH Ventures made its debut in the unlisted market. Market experts report that the grey market premium (GMP) for PKH Ventures IPO is currently ₹6 per share.
Here are the key details regarding the PKH Ventures IPO:
PKH Ventures IPO GMP:
According to market observers, shares of PKH Ventures Limited are trading in the grey market at a premium of ₹6 per share.
PKH Ventures IPO Price:
The public offer price for PKH Ventures IPO has been set within the range of ₹140 to ₹148 per share.
PKH Ventures IPO Date:
The IPO will be open for subscription from June 30, 2023, to July 4, 2023.
PKH Ventures IPO Size:
PKH Ventures aims to raise a total of ₹379.35 crore through its IPO, with ₹270.22 crore to be generated by issuing fresh shares.
PKH Ventures IPO Lot Size:
Investors can apply for the IPO in lots, with each lot comprising 100 shares of the company.
PKH Ventures IPO Allotment Date:
The announcement regarding share allocation is expected to be made on Friday, July 7, 2023.
PKH Ventures IPO Listing:
The company plans to list its shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) with the target listing date set for July 12, 2023.
PKH Ventures IPO Registrar:
The official registrar for the PKH Ventures IPO is Link Intime India Private Ltd.
PKH Ventures IPO Review:
Reliance Securities has given a ‘buy’ recommendation for the IPO. They stated, “Based on the FY22 financials, the IPO is valued at a P/E ratio of 30x, EV/EBITDA ratio of 24.5x, and EV/Sales ratio of 6.5x, considering the upper price band. With multiple projects in the pipeline, the company is expected to experience growth in the upcoming years. Having secured three government hotel development projects and with subsidiary Garuda Construction currently involved in the civil construction of six residential projects, PKH Ventures is also undertaking several forthcoming development projects. Considering the positive business outlook, strong financials, expertise in the hospitality sector, synergies resulting from the acquisition of Amar Remedies, and experienced management team, we recommend subscribing to the IPO.”
Before its listing on the NSE and BSE, PKH Ventures is in the process of acquiring the listed entity Amar Remedies through the Insolvency and Bankruptcy Code (IBC) process. Axis Capital’s report on the PKH Ventures IPO states, “PKH Ventures is acquiring Amar Remedies, a publicly listed company on the NSE and BSE, for a lump sum consideration of ₹31.59 crore.”
PKH Ventures IPO Financials:
From FY2019 to FY2022, PKH Ventures has witnessed a compound annual growth rate (CAGR) of 10% in revenue, 127% in EBITDA, and 70% in adjusted net profit. In FY2022, the company’s revenue reached ₹1,994 million, with an EBITDA of ₹530 million. The EBITDA margin saw a significant increase from 6.2% in FY2020 to 26.6% in FY2022. The adjusted net profit for FY2020, FY2021, and FY2022 stood at ₹141 million, ₹306 million, and ₹405 million, respectively. PKH Ventures has maintained healthy return ratios, with an average return on equity (RoE) and return on capital employed (RoCE) of 8.5% and 4.6%, respectively, during FY2020-2022. The average net asset turnover for the same period was 1.7x.
About PKH Ventures:
Established in the year 2000, PKH Ventures Limited is a company involved in various business sectors including Construction & Development, Hospitality, and Management Services. One of its main focuses is carrying out Civil Construction projects for Third Party Developers. This particular aspect of the company’s operations is managed through its subsidiary and construction division, Garuda Construction.
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