PKH Ventures IPO to open on Friday. What GMP signals ahead of subscription

The initial public offering (IPO) of PKH Ventures will open for subscription on June 30. The issue will be available for the public till July 4. Ahead of the IPO, the company’s shares are trading at a mild premium of Rs 8-9 in the unlisted market. The company is offering its shares in the price range of Rs 140-148.

The IPO comprises fresh equity issue of up to 1.82 crore shares and an offer for sale (OFS) of up to 73.7 lakh units to be offered by selling shareholders. Under the OFS, promoter Pravin Kumar Agarwal will offlolad 73.7 lakh units. About 50% of the net offer is reserved for the QIB portion, 15% for NII category and 35% for retail investors.

PKH Ventures is in the business of construction and development, hospitality and management services. The civil construction business is executed by its subsidiary and construction arm Garuda Construction.

The company does its civil construction works for third party developer projects and has also been awarded two government projects and three government hotel development projects. Its hospitality vertical is in the business of owning, managing and operating hotels, restaurants, QSRs, spas and sale of food products.

As a part of the management services, PKH Ventures provides services for the annual maintenance of the Delhi Police headquarters as per the agreement entered into with the concessionaire. Some of its strengths include the company’s established track record, diverse business model and asset light model of civil construction business.

The proceeds from the fresh issue will be used towards investment by way of equity in its construction subsidiaries, inorganic growth through acquisitions, and other general corporate purposes.

For the period ending December 2022, the company has clocked revenue of Rs 125 crore and a profit after tax of Rs 28.6 crore.IDBI Capital Markets is the book running lead manager to the issue and Link Intime India is the registrar. The company’s shares will get listed on both the exchanges.

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