PKH Ventures Ltd Launches Public Issue Of Up To Rs. 379.35 Crore To Fund Its Expansion Plans

Company plans to issue 2.56 crore Equity shares of Rs. 5 face value at a price band of Rs. 140-148 per share; Shares to list on BSE & NSE.

Highlights:-

• Public issue opens for subscription from June 30 and closes on July 4
• Funds raised through the public issue will be used for equity investment in Halaipani Hydro Power Project, investment in a subsidiary company, Garuda Construction for funding working capital requirements, inorganic growth opportunities through acquisition, other strategic initiatives etc
• For 9MFY23, company reported total income of Rs. 155 crore and net profit of Rs. 28.6 crore
• Third party order book as on March 2023 stands at Rs. 468.27 crore.

PKH Ventures Ltd - a leading corporate group engaged in the business of construction & development, hospitality and management services plans to raise up to Rs. 379.35 crore from its public issue to fund expansion plans. The company plans to use issue Rs. 124.11 crore from issue proceeds for equity investment in Halaipani Hydro Power Project, Rs. 80 crore towards equity investment in a subsidiary company, Garuda Construction for funding working capital requirement, Rs. 40 crore for pursuing inorganic growth opportunities through acquisition and other strategic initiatives and general corporate purposes. The public issue opens for subscription on June 30 and closes on July 4, 2023. The company’s shares will be listed n the BSE & NSE.

The initial public offering of up to 2,56,32,000 equity shares of face value Rs. 5 each comprises of 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. Company has fixed price band of Rs. 140-148 per equity share for the public issue (including a premium of Rs. 135-143 per equity share). The company plans to raise up to Rs. 379.35 crore from the public issue at the higher price band of Rs. 148 per share. The minimum lot size for the application is 100 shares and multiple thereof. Retail investor and HNI quota for the IPO is kept at not less than 25% and 15% of the issue respectively while QIB quota is kept at a maximum 50% of the issue.

Mr. Pravin Kumar Agarwal, Promoter, Chairman and Managing Director, PKH Ventures Ltd said, “Company is progressing well on its long-term growth roadmap and has delivered a robust operational and financial performance over the years and is committed to improve growth numbers going forward. We are confident that after the proposed public issue, we will be able to execute our growth strategy in a manner that creates exponential value for all stakeholders. Proceeds of the issue will further strengthen the company's balance sheet and help fund its strategic growth initiatives."

Incorporated in 2000, PKH Ventures Limited is engaged in the business of Construction & Development, Hospitality, and Management Services with an established track record and follows asset-light model for civil construction business. The company executes Civil Construction works for Third Party Developer projects through its Subsidiary and construction arm, Garuda Construction. Third-party order book as on March 2023 stands at Rs. 468.27 crore.

The company 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. Company owns or manages three hotels including a resort, five restaurants, four banquets and two spas in Mumbai & nearby areas. The company is proposing to develop its own 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.

The financial performance of the company has exhibited considerable progress over the years, demonstrating growth and stability. For FY21-22 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 on March 2022, 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.

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