PKH Ventures Ltd, a leading corporate group involved in the construction and development, hospitality, and management services sector, is launching a public issue to raise up to Rs. 379.35 crore to fund its expansion plans. The company aims to issue Rs. 124.11 crore for equity investment in the Halaipani Hydro Power Project, Rs. 80 crore towards the working capital requirement of its subsidiary Garuda Construction, Rs. 40 crore for pursuing inorganic growth opportunities, and general corporate purposes.
The initial public offering of up to 2,56,32,000 equity shares of face value Rs. 5 each will comprise a fresh issue of up to 1.82 crore equity shares and an offer for sale of up to 73.73 lakh equity shares by the promoter group. The company has fixed a price band of Rs. 140-148 per equity share for the public issue, aiming to raise up to Rs. 379.35 crore from the public issue at the higher price band of Rs. 148 per share.
Pravin Kumar Agarwal, Promoter, Chairman, and Managing Director of PKH Ventures Ltd, expressed confidence in the company’s long-term growth roadmap and its ability to generate exponential value for all stakeholders after the proposed public issue. The funds raised from the public issue are expected to further strengthen the company’s balance sheet and help fund its strategic growth initiatives.
Incorporated in 2000, PKH Ventures Limited has an established track record and follows an asset-light model for its civil construction business. The company executes civil construction works for third-party developer projects through its subsidiary and construction arm, Garuda Construction. The third-party order book as of March 2023 stands at Rs. 468.27 crore.
PKH Ventures Ltd has been awarded two Govt Projects viz., Hydro Power Project, Nagpur Project, and three Govt Hotel Development Projects viz., Rajnagar Garhi Project, Pahadikhurd Project, and Tara Resort Project being executed through Subsidiaries/SPVs/ Company. The company owns or manages three hotels including a resort, five restaurants, four banquets, and two spas in Mumbai & nearby areas.
The financial performance of the company has witnessed significant progress over the years, demonstrating growth and stability. For FY21-22, the company reported total income of Rs. 245.40 crore and net Profit of Rs. 40.51 crore. For the nine months ended December 2022, the company reported total income of Rs. 155.03 crore and earned a net profit of Rs. 28.63 crore. As of March 2022, the net worth of the company stands at Rs. 327.38 crore, Total Assets at Rs. 1,102 crore, and Reserves & Surplus at Rs. 295.69 crore.
The public issue will open for subscription on June 30 and close on July 4, 2023. The company’s shares will be listed on the BSE & NSE, and the minimum lot size for the application is 100 shares and multiple thereof. The company has kept the retail investor and HNI quota for the IPO at not less than 25% and 15% of the issue, respectively, while the QIB quota is kept at a maximum of 50% of the issue.
