PKH Ventures Limited, established in the year 2000, operates in the fields of Construction & Development, Hospitality, and Management Services. The company undertakes Civil Construction projects on behalf of external developers, with its subsidiary and construction arm, Garuda Construction, handling the execution. PKH Ventures has secured two Government Projects, namely the Hydro Power Project and the Nagpur Project, which are currently being carried out by its subsidiaries or special purpose vehicles (SPVs). Read more business news on Industrial Front India.
PKH Ventures IPO
The IPO proceeds of Rs 124.12 crore will be used to invest in the Halaipani Hydro Project for hydro power project development. Additionally, Rs 80 crore will be allocated to invest in the Garuda Construction arm for long-term working capital requirements, and Rs 40 crore will be utilized for inorganic growth through acquisitions and strategic initiatives. The IPO is being managed by IDBI Capital.
As of December 2022, PKH Ventures Ltd had a net debt of Rs 241.03 crore. The company is planning to go public with its initial public offering (IPO) from June 30 to July 4.
PKH Ventures Opening Date & Closing Date:
30th June 2023. The IPO will include a fresh issue of up to 18.26 million shares and an offer for sale of up to 7.73 million shares by the company’s promoter, Pravin Kumar Agarwal, who currently holds a 63.69 percent stake in the company. It will close on 4th July 2023.
The Financials:
PKH Ventures Ltd, a Mumbai-based company, has released its financial results for fiscal year 2022. During this period, the company’s revenue decreased from Rs 241.51 crore to Rs 199.35 crore compared to the previous year, while the net profit increased from Rs 30.57 crore to Rs 40.52 crore. In the nine months leading up to December 2022, the company recorded a profit of Rs 28.63 crore and a revenue of Rs 125.46 crore.
Objectives of PKH Ventures’ initial public offering (IPO) are as follows:
- Utilizing the funds raised through the issuance of new shares to enhance and reinforce its subsidiary businesses.
- Supporting inorganic growth by allocating capital towards strategic acquisitions and financing various corporate expenses.
Key Reasons To Consider Investing In The PKH Ventures IPO:
- Extensive Industry Experience: PKH Ventures has a rich history of operating and managing various hospitality businesses, including hotels, restaurants, vending machines, lounges, and airport catering services. With over fifteen years of experience, the company has developed deep industry knowledge and expertise.
- Diversified Business Models: PKH Ventures has diversified its business activities across construction, development, hospitality, and management. This diversification helps mitigate risks associated with economic downturns and provides stability to the company’s overall operations.
- Resilient Against Recessionary Conditions: Given PKH Ventures’ involvement in multiple sectors, the company is better equipped to withstand recessionary conditions compared to businesses that focus on a single industry. This diversified approach helps reduce the impact of economic fluctuations on the company’s financial performance.
- Strong Financial Performance: PKH Ventures has demonstrated a strong track record of financial performance, indicating its ability to generate consistent profits. This stability is a positive indicator for potential investors, suggesting the company’s ability to generate sustainable returns.
- Robust Balance Sheet: The company boasts a healthy balance sheet, indicating its financial strength and stability. A strong balance sheet provides a cushion during challenging times and allows PKH Ventures to pursue growth opportunities more effectively.
Considering these factors, investing in the PKH Ventures IPO could offer the potential for long term growth and profitability, backed by the company’s industry experience, diversified business models, strong financial performance, and solid balance sheet. However, till it requires a lot more research work, analysis and predictions from an individual’s end for investments.