PKH Venture Limited IPO Details

PKH Venture Limited IPO Details 

Company Overview 

The company was established in the year 2000 by Mr Pravin Agarwal (MD) and engaged in the business of construction, Hospitality, and Management Services. 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) storeys each, with a complete glass façade and steel bridge connecting the two towers. 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. 

PKH Ventures' Hospitality vertical is in the business of owning, managing, and operating hotels, restaurants, QSRs, spas, and the sale of food products. The company currently provides miscellaneous mechanical, electrical, and plumbing ("MEP") works services such as annual maintenance of its projects and certain third-party O&M contracts. The company has developed two hotels in Mumbai viz., Golden Chariot Hotel & Spa, Vasai and Golden Chariot, The Boutique Hotel near Mumbai International Airport ("Mumbai Hotels") and has been owning, managing and operating the 180 Mumbai Hotels since FY 2015. 

PKH Ventures has been awarded with two Government Projects viz., the Hydro Power Project and the Nagpur Project, being executed through its Subsidiaries/SPVs. 

Objective of the IPO 

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: 

1. Investment by way of equity in our subsidiary, Halaipani Hydro Project Private Limited for the development of Hydro Power Project (Civil Construction and Electromechanical Works) 

2. Investment in Garuda Construction project, for funding long-term working capital requirements. 

3. Pursuing inorganic growth through acquisitions and other strategic initiatives; and 

4. To fund expenditures towards general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

• The company has an established track record of over 20 plus years in hospitality management services which is a core strength in the development of strategies compared to its peers. 

• The company has shown visible growth through the increase in orders over the year and by receiving robust government projects in both the construction and hospitality sector 

• The core competency of PKH Ventures lies in its diverse business model including construction & development, Hospitality, and Management Services. These kinds of diverse business models help in reducing overall business risk as the pros and cons of one sector compensate for the other. 

• The company uses the asset-light model for its civil construction business, which means relying on third-party suppliers for equipment and labor at the construction locations. This strategy would significantly help in the reduction of fixed costs and increase the profit margins. 

Cons 

• As the company has many government projects on the table currently, the execution may be delayed if it does not get the approvals of the various authorities in the government. 

• Although the company has experience in the construction and hospitality industry, it lacks experience in developing hydropower plants. This shows that the success rate of the project may be less in the future. 

• The company has been experiencing negative cash flows for the last 3 years. This could be a sign of long-term adverse effects on the financial condition of the company if neglected. 

•  The construction & Development sector, which is the lucrative sector of PKH Ventures Limited, may be adversely affected if any contracts are not obtained in the future or terminated. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”