PKH Ventures IPO to Open for Subscription on June 30
PKH Ventures IPO
PKH Ventures Limited is preparing to launch its initial public offering (IPO) on June 30. This IPO provides an opportunity for investors to subscribe and purchase shares of the company.
The subscription period for the IPO will commence on June 30 and will remain open until July 4.
In this IPO, PKH Ventures plans to issue 1.82 crore fresh equity shares. These new shares represent a portion of the company’s overall equity and will be made available to the public for purchase.
Additionally, the promoter of PKH Ventures, Praveen Kumar Agarwal, will sell 77.3 lakh shares through an Offer for Sale (OFS) mechanism. The OFS allows the promoter to sell a portion of their existing shares in the company to interested investors.
Currently, Praveen Kumar Agarwal holds a significant stake of 63.69 percent in PKH Ventures Limited. This indicates his majority ownership and control over the company.
By participating in the IPO, investors will have the opportunity to become shareholders in PKH Ventures and potentially benefit from the company’s future growth and success.
It’s important to note that PKH Ventures obtained approval from the market regulator in July of the previous year, indicating that the company has met the necessary regulatory requirements to proceed with the IPO.
This approval signifies that the IPO has undergone the required scrutiny and has met the necessary standards set by the regulatory authority.
Where Will the Fund Be Used
The funds raised through the fresh issue of Rs 124.12 crore in the PKH Ventures IPO will be allocated for specific purposes as outlined by the company. Here is a breakdown of the utilization plan:
1. Investment in Halaipani Hydro Project: A portion of the funds, amounting to an undisclosed sum, will be utilized to invest in the Halaipani Hydro Project.
This project is an initiative of PKH Ventures Limited aimed at the development of hydroelectric power projects. The exact amount earmarked for this purpose is not specified in the provided information.
2. Investment in Garuda Construction: Approximately Rs 80 crore from the funds raised will be allocated for investment in PKH Ventures’ subsidiary, Garuda Construction.
This investment is intended to support the long-term working capital requirements of Garuda Construction.
The subsidiary is likely involved in construction activities, and the capital infusion will enable it to finance its ongoing operations and future growth.
3. Inorganic Growth Initiatives: PKH Ventures plans to allocate Rs 40 crore from the IPO proceeds towards driving inorganic growth through acquisitions and other strategic initiatives.
This signifies the company’s intention to expand its business through strategic partnerships, acquisitions, or investments in other companies that align with its growth objectives.
By utilizing the funds raised in these specific areas, PKH Ventures aims to strengthen its presence in the hydroelectric power sector, provide support to its subsidiary’s operations, and pursue inorganic growth opportunities that align with its strategic objectives.
Important Dates Related to the PKH Ventures IPO
1. IPO Subscription: The subscription period for the IPO will take place prior to the important dates mentioned. Investors will have the opportunity to subscribe to the IPO from June 30 to July 4. During this period, interested investors can submit their applications to purchase shares of PKH Ventures.
2. Allotment of Shares: After the IPO subscription period ends, the allotment of shares to successful investors will be finalized on July 7.
The company will allocate the shares based on the demand and availability, adhering to the rules and regulations set by the regulatory authorities.
3. Refund Process for Unsuccessful Investors: Starting from July 10, the refund process will begin for investors who were unsuccessful in obtaining shares through the IPO.
The refunds will be initiated by the company, ensuring that the funds are returned to the respective investors’ accounts.
4. Listing Date: As per the provided schedule, the shares of PKH Ventures are anticipated to be listed on the stock market on July 12.
This signifies that the company’s shares will be available for trading on the stock exchanges, enabling investors to buy and sell the shares in the secondary market.
IDBI Capital Markets has been appointed as the book-running lead manager for the IPO. They will oversee the process and ensure smooth operations during the IPO.
Link Intime India has been appointed as the registrar, responsible for maintaining the records of the IPO and managing the share allotment process.
Furthermore, the shares of PKH Ventures will be listed on both stock exchanges, allowing investors to trade the shares on either exchange based on their convenience and preference.
Please note that the specific dates and processes mentioned may be subject to change or further updates from PKH Ventures and the regulatory authorities.
It’s recommended to refer to the official IPO prospectus and announcements for the most accurate and up-to-date information.
About the Company
PKH Ventures operates in various business segments, including construction and development, as well as hospitality and management services.
The company’s subsidiary, Garuda Construction, primarily handles its civil construction business.
Garuda Construction is involved in executing civil construction projects for third-party developers, which may include residential, commercial, and infrastructure projects.
In addition to its work in the private sector, PKH Ventures has secured contracts for government projects.
The company has been awarded two government projects, which indicates its participation in infrastructure development initiatives supported by the government.
These projects likely involve the construction of public infrastructure such as roads, bridges, or other public facilities.
Furthermore, PKH Ventures has also been involved in government hotel development projects. This suggests that the company engages in the construction and development of hotels that are initiated and supported by government entities. These projects could involve the construction of new hotels or the renovation and expansion of existing ones.
Alongside its construction and development operations, PKH Ventures is also engaged in hospitality and management services.
This aspect of the business may involve managing and operating hotels, providing hospitality services to clients, or offering consulting services related to the hospitality industry.
By participating in various sectors such as construction, development, and hospitality, PKH Ventures aims to leverage its expertise and expand its presence in these industries.
The company’s involvement in both private and government projects highlights its ability to undertake diverse projects and capitalize on opportunities for growth and revenue generation.
Company’s Financial Status
PKH Ventures’ financial performance can be examined based on the information provided:
In the fiscal year 2021-2022 (FY22), the company reported a revenue of Rs 199.35 crore. This represents a decrease compared to the previous fiscal year when the company recorded a revenue of Rs 241.51 crore.
The decline in revenue could be attributed to various factors such as market conditions, project timelines, or other industry-specific factors.
However, despite the decrease in revenue, PKH Ventures was able to improve its net profit. In FY22, the company reported a net profit of Rs 40.52 crore, which is higher than the net profit of Rs 30.57 crore reported in the previous year.
This signifies an improvement in the company’s profitability, potentially due to cost control measures, operational efficiencies, or other factors.
Looking at the nine-month period ending in December 2022, PKH Ventures posted a profit of Rs 28.63 crore. The revenue for this period stood at Rs 125.46 crore.
These figures indicate the financial performance of the company during that specific timeframe.
It’s worth noting that as of December 2022, PKH Ventures had a net debt of Rs 241.03 crore. Net debt refers to the total debt of the company minus its cash and cash equivalents.
The net debt figure gives an indication of the company’s overall debt position, which may impact its financial health and ability to invest in future projects or expansion plans.
The provided financial information offers insights into PKH Ventures’ revenue, profitability, and debt position.
However, for a comprehensive understanding of the company’s financial standing, it is essential to review additional financial metrics, such as cash flow, assets, liabilities, and other relevant financial indicators.
Investors interested in participating in the PKH Ventures IPO should review the official offering documents and seek information from their respective brokerage or investment platforms.
These sources will provide comprehensive details regarding the IPO, including the price per share, the total amount to be raised, and any other relevant information required to make an informed investment decision.
