PKH Venture Limited IPO Review

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PKH Venture Limited was established in 2000 as a management service company. Over the period, the company has developed a well-diversified product and service portfolio through which it caters service in three distinct verticals. The company is engaged in hospitality, construction, management services and development. In 2012, it started its construction business through its subsidiary Garuda Construction. Check out PKH Venture Limited IPO Review details i.e. Allotment Date, Issue Price, GMP And More.

In 2016, it completed the construction of the Delhi Police Headquarters. Currently, the company has a big order book in the construction business with a presence in many areas. The company started its hospitality business in 2014 by establishing a boutique hotel in Andheri east near Airport. The company is also engaged in managing the restaurants for Casablanca, Golden Chariot, and QSRs.

The company has adopted an asset-light model for its construction, design & development business. The major concern for the company is the third-party contract for labor, transportation, relocation of the heavy equipment and machinery from one place to another. 

OBJECTS OF THE PKH VENTURES IPO ISSUE:

  • Prepayment of all the company’s loans, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  

BASIS OF THE IPO OFFER:

  • PKH Ventures company has a well-diversified business.
  • The company has a proven track record in the past the quality service.
  • PKH Ventures has a solid capital deployment. It is highly effective and efficient both on the operational and financial parameters.
  • The company has extensive experience in designing and constructing complex projects and buildings.
  • PKH Ventures work on an asset-light model. The company’s approach is to build up an efficient working environment for their construction, designing & development business.
  • The company has a team of well-experienced technical management staff backed by a strong promoter base.

PKH VENTURES IPO DETAILS:

PKH Ventures Limited, a company engaged in Construction, Design & Development, has its headquarters in Mumbai. The company has submitted its DRHP to the SEBI and is currently waiting for approval from SEBI to float its IPO in the market. The company’s IPO consists of an issue size of 2,92,73,000 equity shares. In the IPO, the company has proposed an issue of fresh equity shares worth 2,42,73,000 equity shares and an OFS of worth 50,00,000 equity shares been brought forward by the company’s promoters. 

The company also stated that it would also carry out a pre-IPO placement of 25,00,000 equity shares. It is estimated that the company’s issue size will be worth around Rs. 500 Crores. The company stated that the fund been raised by the company from the issue of fresh equity would be used for investment in Hydro Project at Halaipani. 

IPO Opening Date 
IPO Closing Date 
Issue TypeBook Building Type
Face ValueRs. 5 per equity share
IPO Price 
Market Lot 
Min Order Quantity 
Listing AtBSE, NSE
Issue Size2,92,73,000 Equity Shares
Fresh Issue2,42,73,000 Equity Shares
Offer for Sale50,00,000 Equity Shares
Basis of Allotment Date 
Initiation of Refunds 
The Credit of Shares to Demat Account 
IPO Listing Date 
Basis of Allotment Type% Of the Allotment through the IPO Offer
Qualified Institutional Buyer50
Non – Institutional Investor15
Retail35
 
ParticularsFor the year with the amount ending in crores
31-Mar-2131-Mar-2031-Mar-19
Total Assets1077.04244.81218.58
Total Revenue264.66169.00168.64
Profit After Tax30.5714.092.44
PARAMETERMARCH 21MARCH 20YoY %
   Earnings Per Share (Rs)38.2118.78103.51
   CEPS(Rs)67.3521.64211.17
   Book NAV/Share (Rs)231.27199.0616.18
   Tax Rate (%)24.6215.8455.47
   Core EBITDA Margin (%)20.937.02198.21
   EBIT Margin (%)31.6313.15140.46
   Pre-Tax Margin (%)28.3610.10180.79
   PAT Margin (%)21.388.50151.48
   Cash Profit Margin (%)22.319.79127.79
   ROA (%)7.816.0828.40
   ROE (%)30.889.91211.74
   ROCE (%)33.4312.87159.79
   Asset Turnover(x)0.370.72-48.94
   Sales/Fixed Asset(x)1.093.58-69.54
   Working Capital/Sales(x)1.8811.37-83.50
   Fixed Capital/Sales(x)0.920.28228.30
   Receivable days27.526.59317.34
   Inventory Days0.871.06-18.03
   Payable days399.17134.99195.70
   EV/Net Sales(x)0.410.15182.73
   EV/Core EBITDA(x)1.351.64-17.57
   EV/EBIT(x)1.311.1117.58
   EV/CE(x)0.090.10-6.34
   Net Sales Growth (%)45.593.411235.66
   Core EBITDA Growth (%)399.3453.50646.47
   EBIT Growth (%)250.08180.4838.57
   PAT Growth (%)266.12479.91-44.55
   EPS Growth (%)103.51478.43-78.36
   Total Debt/Equity(x)0.520.17201.44
   Current Ratio(x)1.761.2837.56
   Quick Ratio(x)1.761.2837.66
   Interest Cover(x)9.674.31124.50

Top of Form

PARAMETER% Change in FY2021
EBITDA 470.06 %
Networth 5.86 %
Debt/Equity Ratio 0.64
Return on Equity 5.53 %
Total Assets 6.99 %
Fixed Assets-5.26 %
Current Assets 33.23 %
Current Liabilities 13.35 %
Trade Receivables-56.09 %
Trade Payables 16.63 %
Current Ratio 1.28

STRENGTHS AND GROWTH ASPECTS OF PKH VENTURES IPO:

  • PKH Venture Limited has a well-diversified product and service portfolio through which it caters service in three distinct verticals. The company is engaged in hospitality, construction, management services and development.
  • The company benefits greatly from its in-house teams that carry out the strategy build-up and execution in different business verticals.
  • Even in the COVID-19 pandemic, the company maintained positive revenues in FY 2021. The company achieved this by completing its Construction & Development projects and managing the supply chain and other disruptions in the global pandemic period.
  • Along with a well-diversified product portfolio, it also holds for a well-diversified geographical presence. The company has its business roots in Madhya Pradesh, Maharashtra, Rajasthan, Punjab and Arunachal Pradesh. This helps the company to have less reliance on any particular territory setup.
  • PKH Ventures also holds a long experience of more than 20 years in hospitality and all other verticals except construction. Also, it has a good track record that signifies the performance efficiency at both operational and financial upfront.
  • The company has a system of highly efficient and effective capital deployment. 
  • Another great strength of PKH Ventures Limited is that the company has always been debt-averse. It has only used loans to meet their expenses regarding the working capital requirement only. The company has used its internal accruals for any financial requirement.
  • The company has a good financial profile with:
Debt-to-asset ratio0.16
ROCE12.93
ROE16.55

WEAKNESS AND THREATS OF PKH VENTURES IPO:

  • PKH Ventures is engaged in multiple businesses, but the construction and development business of the company projects accounts for a major source of revenue.
  • The company has stated in their DRHP that their Order-Book does not indicate their future performance. The company also stated that its actual revenue might be lower than its actual forecast.
  • PKH Ventures limited was badly hit by the COVID-19 on operational and financial terms.
  • The hydropower project of the company is vulnerable to many problems such as weather-related threats, including floods, landslides, cloudbursts, and many other environmental hazards.
  • The company has also engaged itself in real estate and developmental projects in Amritsar. The problem with it is the experience of the company. It is the first time that the company has been executing any such project. Any mismanagement and improper execution can lead to a significant negative impact on the company’s operation.
  • PKH Ventures limited is also currently facing legal problems associated with the acquisition of Amar Remedies Ltd. the company has adopted to follow the IBC procedure.
  • The company has a high level of dependence on the Government, Government Agencies, and Government-funded companies for a very significant part of their income.
  • The company has a very modest working and financial capital structure. The company’s financials will be heavily impacted if, due to any reason, they are not able to get any new contract.
  • In the hospitality sector, the company’s hotels in Mumbai account for a major revenue source.
  • PKH Ventures limited faces a trial on a dispute with the Sahara Group. As a result of this, the company cannot run its facility of resorts and spas in Lonavala.
  • The company, along with its subsidiary, promoters, group companies and director, is currently facing a trial under legal procedure. Any negative news on this front will hamper the image of the company.

PROMOTERS:

  • Pravin Kumar Agarwal
Pre – Issue Share Holding63.69%
Post Issue Share Holding

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: compliance@pkhventures.com
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: pkh.ipo@linkintime.co.in
Website: www.linkintime.co.in

LEAD MANAGER(S) OF PKH VENTURES IPO:

  • Monarch Networth Capital Limited
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