KHFM Hospitality & Facility Management IPO

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(i) KHFM Hospitality and Facility Management Services Limited (“KHFM”) was incorporated in the year 2006 and is engaged in the business of integrated hospitality and facilities management services. The company manages 12 lacs sq. ft. of Gardening and 30 lacs sq. ft. Corporate Space on a daily basis, equipped with the latest technology and trained manpower. Having strong clients across BFSI, Aviation, Government Establishments, Municipal Corporations, Retail, Railway, Hospitality, Business Parks, Infrastructure sector, company provides end-to-end outsourced solution & services in the assessment and management of property and facilities.

(ii) Services Offered by the Company:

a)Facility Management.
b) Hospitality Services and Catering.
c) Horticulture & Gardening.
d) Security Service.

(iii) Headquartered in Mumbai, they have a pan-India presence across 10 states covering 21 cities through a network of site offices. As of June 30, 2018, they employed appx 2,505 employees, including over 2130 employees hired by the Company (“Core Employees“) and over 310 employees hired on a contract basis (“Associate Employees“).

KHFM Hospitality & Facility Management IPO Stock Quote & Charts

26.20

-1.50%

  • Open: 26.00
  • High - Low: 26.40 - 26.00
  • Previous Close: 26.60
  • Total Traded Volume: 36000
  • Updated On: 21-Nov-2019

Objects of the KHFM Hospitality & Facility Management IPO:

The Company is Issuing 29,50,000 Shares at Rs. 38 a piece thereby raising 11.21 Cr from the Proceed for the Following Items. A. To meet the working capital requirements of the company= 10 Cr. B. General Corporate Purposes= 26 Lakh

KHFM Hospitality & Facility Management IPO Details:

Open Date: Mar 22 2019
Close Date: Apr 04 2019
Total Shares: 2,950,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price IPO
Issue Size: 11.21 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 36 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 12 2019

Promoters And Management:

The Company is promoted by Mr. Ravindra Malinga Hegde and Mrs. Sujata Ravindra Hedge, who have over 3 decades of experience in the service industry. Mr. Ravindra Malinga Hedge, the main Promoter of the Company, has been instrumental in our growth. The senior management comprises individuals, including national heads who lead the different verticals within our IHFM solutions offerings, with significant experience in the IHFM services industry and who have been associated with our Company on an average for 10years.

Financials of KHFM Hospitality & Facility Management IPO:

 
Year Revenue(Cr) PAT(Cr) EBITDA Margins(Cr) Profit %(Cr) Shares(Cr) EPS
FY16 45.00 1.95 13.72% 4% 0.0675 28.89
FY17 44.00 1.81 13.41% 4% 0.0675 26.81
FY18 45.00 2.22 15.50% 5% 0.675 3.29
6MFY19 37.85 1.37 11.12% 4% 0.675 2.03
Post-Issue 0.97 2.82
IZ Review 1. Revenue and PAT Growth is almost Stagnant over the years. 2. As on 30.09.2018, the company has a total debt of 24.49 Cr on the Balance Sheet. The Net-worth is 19.73 Cr. So D/E is 1.24. Post Issue D/E would be 0.79. 3. Very High Receivables of 29 Cr on the revenue of 37 Cr for first 6 Month of FY19. 4. The Company has a comfortable Current Ratio of more than 1.5. 5. The P/E after Annualizing the earnings of the first 6MFY19 is 13.74 and on the basis of Average earning of FY16,17 and 18 is 18.44.

Comparison With Peers:

The Peers Kaarya Facilities & Services Limited and Rithwik Facility ManagementServices Limited are trading at P/E of 18.66 and 21.42.

Recommendation on KHFM Hospitality & Facility Management IPO:

Review and Recommendation of KHFM Hospitality & Facility Management IPO from IZ team are 3/10. [ The company has stagnant growth in the last 3 years. The company has a manageable D/E and the issue is priced similar to its peers]

Lead Manager of KHFM Hospitality & Facility Management IPO:

  1. Bonanza Portfolio Limited

Registrar of KHFM Hospitality & Facility Management IPO:

  1. Bigshare Services Private Limited

Bid Details of KHFM Hospitality & Facility Management IPO as on
04-Apr-2019 18:00:00 IST

Category No.of shares offered No. of shares bid
1,401,250 1,782,000
1,401,250 1,962,000
147,500 147,500
2,950,000 3,891,500
QIBs No
QIBs+HNIs Subscription 1.27X
Retail Subscription 1.40X
Total Subscription 1.34X

Discussion on KHFM Hospitality & Facility Management IPO:

    The very poor condition of SME these days. Not able to subscribe 1x time.

    It has been extended till 4th April 2019, and the price has been reduced from 38 to 36.