PKH Ventures sets price band for IPO at Rs 140-148 a share

IPO

PKH Ventures has set the price band for its initial public offering at Rs 140-148 a share. The issue will open for subscription on June 30 and close on July 4. The allotment will be on July 7, while the initiation of refunds will be on July 10 and listing on exchanges will be on July 12.

The IPO consists of a fresh issue of up to 18.26 million shares and an offer-for-sale of up to 7.73 million shares by its promoter Pravin Kumar Agarwal, who holds 63.69 percent stake in the firm. On the upper band price, the total issue size comes at Rs 379.35 crore and the firm values at Rs 1,217 crore.

The proceeds from the fresh issue worth Rs 124.12 crore will be used to invest in its arm Halaipani Hydro Project for development of hydro power projects. The firm will also use Rs 80 crore for investment in its arm Garuda Construction for funding long-term working capital requirements. The company said it will also use Rs 40 crore out of the fresh issue to pursue inorganic growth through acquisitions and other strategic initiatives.

IDBI Capital is the sole book running manager to the issue.

The Mumbai-based company operates in three distinct business verticals - construction and development, hospitality, and management services - and specialises in executing civil construction works for third-party developer projects.

It has successfully secured two government projects - a hydro power project in Nagpur and the Nagpur Project. Its subsidiaries are undertaking three government hotel development projects - the Rajnagar Garhi Project, the Pahadikhurd project, and the Tara Resort project.

For the fiscal year 2022, the company reported a revenue of Rs 199.35 crore, compared to Rs 241.51 crore it posted a year ago. Net profit for the period stood at Rs 40.52 crore as against Rs 30.57 crore last year. For nine months ended December 2022, the firm made a profit of Rs 28.63 crore while revenue stood at Rs 125.46 crore.

As of December 2022, net debt of the company stood at Rs 241.03 crore. The company has not announced its March quarter and FY23 fiscal year earnings yet.