PKH Ventures IPO: Construction and manufacturing firm PKH Ventures’ Rs 379-crore IPO opened for subscription on 30 June. The issue received lukewarm subscription on Day 1, with the issue being subscribed only 6%. PKH Ventures IPO comprises a fresh issue of Rs 270.22 crore as well as an offer for sale of 73.3 lakh shares.
PKH Ventures has set the price band for the IPO at Rs 140-148 per equity share. PKH Ventures shares’ grey market premium rose 8.11% on Tuesday, commanding a premium of Rs 12 over upper end of the IPO price, implying a listing price of Rs 160 per share.
PKH Ventures executes civil construction works for third party developer projects. The civil construction business is executed by its subsidiary and construction arm, Garuda Construction. The company concluded the development of the Delhi Police Headquarters in April 2021, which involved the construction of twin towers of seventeen (17) stories each. The company is proposing to develop its own forthcoming development projects, which include real estate development at Amritsar, Punjab; a food park at Jalore, Rajasthan; cold storage park/facilities at Indore, Madhya Pradesh; and a wellness center & resort at Chiplun, Maharashtra.
Should you apply for the PKH Ventures IPO?
Hensex Securities: Subscribe for Medium to Long Term
“The company managed restaurants, bars, food stalls, lounges, parking spaces, ticket counters, etc at the airports. In a span of 18 years the company managed more than 15 airports in India. The company has constructed more than 15 lakh sq. ft. in various private and government projects making construction & development vertical as the main growth engine. The company had an order book of Rs 559.75 crore as of March 31, 2022. PKH Venture owns, manages and operates various businesses directly or through their subsidiaries and there is no consistency in revenues from one business segment. Company’s inability to maintain consistency in revenues from the businesses may adversely affect their business, results of operations and financial condition.”
Reliance Securities: Subscribe
“On FY22 financials, the IPO is valued at 30x P/E, 24.5x EV/EBITDA and 6.5x EV/Sales, at the upper price band. The company is poised for growth in the coming years led by multiple projects in the pipeline. The company has been awarded with 3 Government Hotel Development Projects, while subsidiary Garuda Construction is currently engaged in the Civil Construction of 6 residential projects. PKH is also undertaking several Forthcoming Development Projects. Considering the healthy business prospects, decent financials, expertise in the Hospitality vertical, synergies led by acquisition of Amar Remedies and experienced management, we recommend SUBSCRIBE to the issue.”