PKH Ventures IPO: Everything You Need to Know Before June 30

Latest Updates: PKH Ventures, a civil construction company, is all set to launch its initial public offering (IPO) for subscription starting from June 30.

PKH Ventures is a company that excels in three core business verticals: construction and development, hospitality, and management services. Its reputation lies in its proficiency in executing civil construction projects on behalf of external developers.

Here are the key highlights to know about the PKH Ventures IPO, which is worth ₹379 crore:

IPO Dates: The IPO will be open for subscription from June 30 to July 4.

Price Band: The price range for the PKH Ventures IPO is set at ₹140-148 per share.

Issue Details: The IPO comprises a total of 256 million shares. This includes a fresh issue of up to 182 million shares and an offer for sale (OFS) of up to 73.73 million shares by the company's promoter, Pravin Kumar Agarwal, who currently holds a 63.69% stake in the company.

Here are the important details regarding the PKH Ventures IPO:

Issue Size: The PKH Ventures IPO is valued at ₹379.35 crore at the upper end of the price band, resulting in a company valuation of ₹1,217 crore.

Lot Size: The lot size for the PKH Ventures IPO is 100 shares. Retail investors have the option to bid for up to 13 lots, with a minimum investment amount of ₹14,800.

Allotment and Listing: The shares will be allocated to investors on July 7, and refunds will be initiated on July 10. The allotted shares will be credited to the investors' demat accounts on July 11. PKH Ventures shares are expected to be listed on exchanges on July 12.

Here are the important details related to the PKH Ventures IPO:

Lead Manager and Registrar: IDBI Capital is the sole book running manager for the IPO, while Link Intime India Pvt Ltd is the appointed registrar for the IPO.

Promoter Shareholding: Following the IPO, the promoter's stake in PKH Ventures is expected to reduce from 100% to 68.84%.

IPO Objective: The company plans to utilize ₹124.12 crore from the fresh issue proceeds to invest in its subsidiary, Halaipani Hydro Project, for the development of hydro power projects. Additionally, ₹80 crore will be allocated to support the long-term working capital requirements of its subsidiary, Garuda Construction. Furthermore, ₹40 crore will be allocated for inorganic growth opportunities, including acquisitions and other strategic initiatives.

Here are the summarized details related to the PKH Ventures IPO:

IPO Reservation: The public issue has allocated 50% of the shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and the remaining 35% for Retail Investors.

Financials: In FY22, PKH Ventures recorded a net profit of ₹40.52 crore compared to ₹30.57 crore the previous year. Its revenue for FY22 was ₹199.35 crore, down from ₹241.51 crore in the prior year. For the nine-month period ending December 2022, the company reported a profit of ₹28.63 crore on a revenue of ₹125.46 crore.

PKH Ventures IPO GMP: The grey market premium (GMP) for PKH Ventures IPO is currently at ₹5 per share, according to IPO Watch. Market observers indicate that the shares of PKH Ventures are trading at a premium of ₹5 to ₹8 in the grey market.