The acquisition of FMCG brand Amar Remedies has the potential to increase PKH Ventures' revenue by Rs 200 crore, or by around 80 percent, said the construction company's promoter and chairman Pravin Kumar Agarwal while speaking to Moneycontrol on June 30.
Notably, the revenue clocked by PKH Ventures in fiscal year 2021-22 had stood at Rs 245 crore.
The company plans to begin production at Amar Remedies in the next seven to eight months. It is currently in the process of acquiring the Mumbai-based FMCG firm, which is an NSE- and BSE-listed entity, through the insolvency resolution process.
The acquisition of Amar Remedies is targeted to be completed in "lumpsum consideration of Rs 31.59 crore", Axis Capital said in a report released on the initial public offering (IPO) launched by PKH Ventures.
While the Mumbai bench of the National Company Law Tribunal (NCLT) has authorised PKH Ventures' strategy to acquire Amar Remedies, the size of shareholding remains a stumbling block. The company intends to acquire a 99.96 percent stake, but as per the government norms, the limit to purchase shares is 95 percent.
PKH Ventures, however, remains positive that the matter would be resolved within a couple of months.
Meanwhile, the IPO launched by PKH Ventures earlier in the day was off to a slow start. The offer was subscribed 6 percent after bids were received for 15.59 lakh equity shares against an IPO size of 2.56 crore by the afternoon on June 30, the first day of the bidding.
The construction and development company, which did not have any anchor portion, is looking to raise Rs 379.35 crore. The IPO comprises a fresh issue of 1.82 crore equity shares and an offer for sale of 73.73 lakh shares by promoter Pravin Kumar Agarwal. The fresh issue is expected to fetch Rs 270.22 crore at the upper price band and OFS Rs 109.13 crore.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
