PKH Venture Limited is a multi-faceted company with operations in three (3) distinct verticals: construction and development, hospitality, and management services. For the planning and implementation of their business verticals, they have dedicated in-house teams. PKH Ventures IPO will hit the market in January 2021.
Table of Contents
About PKH Ventures
Their Company’s diverse business strategy acts as a buffer against any recessionary climate in the industry in which they operate, such as the current Covid-19 epidemic, which has had a long-term impact on the hotel sector.
They were able to maintain revenues in FY 2021 by completing Construction & Development projects with little disruptions throughout the epidemic.
The varied geographies in which their Development projects are located in states like as Maharashtra, Punjab, Arunachal Pradesh, Madhya Pradesh, and Rajasthan also acts as a buffer against local unfavourable occurrences, both natural and political, that may strike a state or area.
Services
They have over 20 years of expertise in the hospitality and management services industry and feel they have a proven track record of owning and running hotels, restaurants, and quick service restaurants.
They have more than ten years of expertise in the construction and development area, with ten projects totaling more than 50,000 lakhs. They think that their track record of successful and timely implementation stems from this experience.
In the past, They’ve utilised people, material, and financial resources efficiently and effectively in the Construction & Development and Hospitality Management Services verticals.
Their planning and execution teams ensure that each of their business’s major deliverables and milestones are met.
Efficient Capital Deployment
Effective and effective capital deployment is a task for any company, but it’s even more difficult for a company like theirs, where different business verticals have different cash requirements.
They ‘ve always been debt averse, using loans only to meet their working capital needs. Internal accruals have primarily been used to manage their financial requirements.
They plan to maintain a modest debt profile in the future, but may consider raising debt on a case-by-case basis if necessary.
Their debt-to-asset ratio is 0.16 as of 2021, and they have adequate fiscal flexibility to borrow money if and when they need it. According to their financial statements, their ROCE is 12.93 percent and their ROE is 16.55 percent as of 2021.
PKH Ventures IPO
PKH Ventures Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 2,92,73,000 equity shares on 29 September 2021.
The offer includes 2,42,73,000 fresh equity shares and there is an offer for sale (OFS) of 50,00,000 Equity Shares by the promoters mentioned in the DRHP. They are also looking for pre-IPO placement of 25,00,000 equity shares in this issue.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 1077.04 | 244.81 | 218.58 | ||
| Total Revenue | 264.66 | 169.00 | 168.64 | ||
| Profit After Tax | 30.57 | 14.09 | 2.44 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 5.06 | 5.06 | 3 |
| Financial Year 2020 | 2.35 | 2.35 | 2 |
| Financial Year 2019 | 0.41 | 0.41 | 1 |
| Weighted Average | 3.38 | 3.38 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the qualitative variables and key strength that go towards determining the price:
- A business that is well-diversified.
- A proven track record.
- Capital Deployment that is both effective and efficient.
- Extensive experience in the design and construction of complex buildings and projects.
- For their construction & development business, they used an asset light approach.
- Management team with years of experience.
PKH Ventures IPO Peer Comparison
Their company engages in a variety of business activities, and they think that no other listed company in India engages in a similar range of activities. As a result, providing an industry comparison in respect to their Company is not feasible.
PKH Ventures IPO Details
| IPO Opening Date | January 2021 |
| IPO Closing Date | January 2021 |
| Issue Type | Book Building |
| Face Value | 5 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | 2,92,73,000 Equity Shares |
| Fresh Issue | 2,42,73,000 Equity Shares |
| Offer for Sale | 50,00,000 Equity Shares |
PKH Ventures IPO Date
PKH Ventures IPO opening date is January 2021, and the closing date is January 2021. The PKH Ventures IPO issue may list in January 2021.
| IPO Opening Date | January 2021 |
| IPO Closing Date | January 2021 |
| Basis of Allotment Date | January 2021 |
| Initiation of Refunds | January 2021 |
| Credit of Shares to Demat Account | January 2021 |
| IPO Listing Date | January 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
PKH Ventures IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of PKH Ventures IPO.
PKH Ventures IPO GMP
PKH Ventures IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
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Check Out the GMP of all Other IPOs
PKH Ventures IPO Review
PKH Ventures IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of PKH Ventures IPO is good or bad.
PKH Ventures IPO Risk
- Construction and development projects provide for the majority of their revenue.
- Their Order Book may not be indicative of their future performance, and their actual revenue may be considerably lower than their Order Book forecasts.
- Their hydropower project is vulnerable to weather-related threats such as flooding, cloudbursts, and other environmental hazards.
- In Amritsar, they’re working on a real estate development project. They have no prior experience building and selling real estate.
- Their pro forma financial information is provided for illustration purposes only and is not indicative of their financial status in the future.
- The majority of their development projects have been awarded through competitive bidding.
Other Threats
- Through the IBC procedure, their company is purchasing Amar Remedies Ltd, an NSE/BSE listed public company.
- Government or government-funded companies or government agencies in India account for a substantial portion of their income transactions.
- Their financials will be impacted if they are unable to get into new contracts in their Management Services business sector.
- Their Mumbai hotels account for a major percentage of their Hospitality revenues.
- Due to a dispute with the Sahara Group, they are unable to run one of their resorts and spas in Lonavala.
- There are ongoing legal procedures involving their company, subsidiaries, group companies, promoters, and directors that may have a negative impact on their business.
Developments
Over the years, they’ve built up technical capabilities and competence in the design and implementation of complicated construction and development projects.
In their early years in the construction industry, they mostly completed civil construction projects that did not need significant design or engineering.
They have developed expertise in the designing and engineering aspects of complex BOT projects over the last few years, allowing them to complete projects such as the Delhi Police Headquarters and allowing them to further identify and bid for projects such as the Hydro Power Project and the Nagpur Project.
They have skilled engineers who investigate the technical issues with the help of project management consultants.
Business Model
For their Construction & Development sector, they believe in an asset light approach and rely on third-party providers for equipment and labour. At these sites, third-party contractors lower fixed expenses.
Furthermore, because their projects are spread across several geographies such as Punjab, Arunachal Pradesh, Maharashtra, and Rajasthan, transporting heavy equipment and machinery from one location to another for the execution of their Development Projects is challenging and unviable.
Of addition to the difficulties in mobilising equipment and machinery across India, a significant amount of cash is required to buy these assets, which may be better used in other areas of our business.
PKH Ventures IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
PKH Ventures IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| January 2021 | 1 | |||||
| January 2021 | 2 | |||||
| January 2021 | 3 |
Management
Pravin Kumar Agarwal, their Promoter, has over thirty (30) years of expertise in construction, hospitality, and management services.
He possesses the knowledge and vision required to lead and expand their company’s business and operations. Their Promoter is active in their Company’s day-to-day operations as well as future business initiatives.
He plays a key role in their company’s organic and inorganic growth and development through new initiatives and endeavours.
To ensure competent administration of their different companies, their firm has recruited several top management personnel in each of its business verticals. Their hospitality division is managed by industry veterans with over 20 years of expertise.
Promoters
- Pravin Kumar Agarwal
Promoter’s Holding
| Pre Issue Share Holding | 63.69% |
| Post Issue Share Holding |
PKH Ventures IPO Prospectus
Contact Details
PKH Ventures Limited
201, A Wing, Fortune 2000, C-3,
G Block Bandra Kurla Complex, Bandra (East),
Mumbai 400 051, Maharashtra, India
Tel: +91 22 7963 5174 / 3572 2456
E-mail: [email protected]
Website: pkhventures.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Monarch Networth Capital Limited
We hope we are able to answer all your questions about PKH Ventures IPO. Let’s us know your feedback in the comment section. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all as they activities are not regulated by SEBI or any government authority. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
PKH Ventures IPO Opening Date?
PKH Ventures IPO likely to open in January 2021.
PKH Ventures IPO Listing Date?
PKH Ventures IPO will list in January 2021.
PKH Ventures IPO GMP Today?
PKH Ventures IPO Grey Market Premium is INR 0 .
PKH Ventures IPO Allotment Date?
PKH Ventures IPO basis of allotment will be in January 2021.
Lot size for PKH Ventures IPO?
Lot size for PKH Ventures IPO is 0.
