PKH Ventures Limited IPO Closed

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IPO date 30 Jun 2023 – 04 Jul 2023
Listing date 12 Jul 2023
Price range 140 – 148
Minimum order quantity 100
(D)RHP View

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Established in 2000, PKH Ventures Limited is in the business of Construction & Development, Hospitality, and Management Services.

The company provides varied services at several airports along with managing restaurants, bars, food stalls, lounges, parking spaces, and ticket counters at the airports.

Over the years, the company decided to focus on setting up a construction business which is executed by its subsidiary and construction arm, Garuda Construction., hotels, and restaurants.

Segment-wise contribution to revenue (%)

Segment 9MFY23 FY22 FY21
Construction and Development 61.2 46.7 47.3
Hospitality and sale of food products 30.6 38.5 15.8
Management services 7.3 14.8 36.3
Other operating revenue 0.8 0.03 0.6

About the industry:

The company primarily operates in the construction sector which is the country’s second-largest economic segment after Agriculture contributing 8.00% to the national GVA (at constant price) in FY22. The sector is expected to contribute 15.00% to the Indian economy by 2030. (Source: Company Commissioned CareEdge Research Report).

The public offer of PKH Ventures Limited includes a fresh offer of equity shares aggregating up to Rs.379 crores.

Objects of the issue and proceeds utilization

Purpose Proceeds (₹ crores)
Investment in a subsidiary, Halaipani Hydro Project for development of Hydro Power Project 124.11 
Investment in subsidiary Garuda Construction for funding long-term working capital requirements 80
Inorganic growth opportunities like acquisitions 40
General corporate purposes Balance

Financial information and other valuation metrics (₹ crores)

Financial Year Total Assets  Total Revenue Profit After Tax EBITDA
March 31, 2021 1077 264.66 30.57 78.61
March 31, 2022 1102 245.41 40.52 99.02
9 Months ending on December 31, 2023 1248 155.03 28.64 64.66

Risk factors to consider:

Negative cash flows: The company had negative cash flows in the past and may continue to do so in the future and which in turn may adversely affect the ability to operate the business and implement growth plans.

Dependance on Government projects: Significant portion of the company’s revenues (65.70% and 44.55% for Financial Years 2022 and 2021) come from Construction & Development activity from the Government of India, through Delhi Police. Any dispute with the Delhi Police leading to a delay or cessation of annuity payments may result in a material adverse effect on the company's financial condition.

Environmental risks: Company's Hydro Power Project faces weather-related risks like floods, cloudbursts, landslides, and such environmental risks. In such an event, the Hydro Power Project may get severely damaged or partly or completely destroyed leading to a major capital and revenue loss.

Non-compliances in the past: There were company Law related non-compliances in the past which may be to regulatory action, including a monetary penalty.

Lack of experience: Company has no experience in developing and operating a hydropower plant. In the event of failure of execution of the Hydro Power Project or lack of adequate generation of power, the same may adversely affect our results of operations and financial condition.

Related party transactions: Company has entered into revenue-sharing agreements with our Promoter and Group Companies for certain properties owned by them and used for the business of our Company which may result in a reduction of profits as per the arrangements.

IPO Schedule

Issue Period 30th June to 4th July 2023
Finalization of Allotment 7th July 2023
Initiation of Refunds 10th July 2023
Credit of Shares 11th July 2023
Date of Listing 12th July 2023
Mandate end date 19th July 2023
Anchor Investors Lock-In End Date 3rd August 2023

How do I apply to the PKH Ventures Limited IPO?

You can apply for the PKH Ventures Limited IPO using any supported UPI app by following two steps:
  • Enter your bid on Kite
  • Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

Where do I check the allotment status for PKH Ventures Limited IPO?

You can check the allotment status for the PKH Ventures Limited IPO on the website of the Registrar and Transfer agent.

Alternatively, you can also check the allotment status on the NSE website.