PKH Ventures Ltd IPO

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i. PKH Ventures is a diversified Company undertaking business in three (3) broad verticals, namely, Construction & Development, Hospitality and Management Services. They ventured into the business of Construction and Development through its subsidiary, Garuda Construction in the year 2012 with the development of our Mumbai Hotels. Through the years they have grown this vertical further and executed more than ten (10) Construction & Development projects.

ii. PKH Ventures at present have eleven (11) Construction and Development projects under development. Their Construction projects include residential, commercial buildings and miscellaneous construction projects. Their Development projects include Amritsar Project, Punjab, Halaipani Hydropower Plant, Arunachal Pradesh, Food Park at Jalore, Rajasthan, an entertainment centre at Nagpur, Maharashtra, Cold Storage Project near Indore, Madhya Pradesh and Wellness Centre and Resort, at Chiplun, Maharashtra.

iii. The Company, post incorporation in the year 2000, was offering Management Services at several airports in the country. The more than fifteen (15) years of experience in offering Management Services at various airports laid the foundation for the Company to venture into the hospitality sector by developing and operating two (2) hotels viz. a luxury hotel at Vasai, at the outskirts of Mumbai in the year 2014 and a boutique hotel near the Mumbai International Airport, Andheri (East), Mumbai in 2015.

iv. The company also manage and operate a luxurious resort at Aamby Valley, Lonavala, near Mumbai (“Aamby Valley Resort”). As a natural extension to the hotel business over the years, the Company forayed into the owning and operating of restaurants under the name/brands Balaji, Golden Chariot, Zebra Crossing and Casablanca and QSRs under the brands Hardy’s Burger and Mumbai Salsa. Zebra Crossing, Mumbai Salsa and Hardy’s Burger outlets are managed and operated by the Company which form part of the centres of a child edutainment company in Mumbai and Delhi.

v. They acquired the movable and immovable assets of a company at Amritsar, Punjab through IARC in the year 2014 and are in the process of acquiring a public listed company viz. Amar Remedies Limited through the IBC process. The company also own a cricket team in the T20 Mumbai League of the Mumbai Cricket Association (MCA).

Competitive Strengths

i. Diversified Businesses
ii. Established Track Record
iii. Effective and Efficient Capital Deployment

Objects of the PKH Ventures Ltd IPO:

The net proceeds of the Fresh Issue, i.e. gross proceeds of the Fresh Issue less the Offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilised in the following manner: 1. Investment by way of equity in Halaipani Hydro Project Private Limited for development of Hydro Power Project; 2. Investment by way of equity in Makindian Foods Private Limited for the development of the Amritsar Project – Phase I; 3. Investment in Garuda Construction for funding working capital
DRHP of PKH Ventures Ltd IPO
RHP of PKH Ventures Ltd IPO

PKH Ventures Ltd IPO Details:

Open Date: Jun 30 2023
Close Date: Jul 04 2023
Total Shares: 25,632,000
Face Value: ₹ 5 Per Equity Share
Issue Size: 380 Cr.
Lot Size: 100 Shares
Issue Price: ₹ 140-148 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 12 2023

Promoters And Management:

i. Pravin Kumar Agarwal is the Promoter, Chairman and Managing Director of the Company. He is director of the Company since incorporation. He has, vast and profound knowledge of the business and is a constant motivating factor for the team. He has served the Company since incorporation as a director. He is actively involved in the decision making and management of the Company. He has over 21 years of professional experience. ii. Kingston Eric Mendes is the Executive Director of the Company. He is a commerce graduate from University of Mumbai and has done diploma in Hotel and Institutional Management from Bombay YMCA International House. He has an experience of more than 1 (one) year of experience in hospitality industry and has previously worked with Royal Palms, Gold and Country Club and Golden Chariot Airport Hotel. Ram Niranjan Bhutra is appointed as Non-Executive Director of the Company. He is a member of the Institute of Chartered Accountants of India. He has more than 10 (ten) years of experience in field of accounting, taxation, finance and audit. He provides his guidance to the Company for operational issues and strategy planning for business development of the Company. Presently, he is also a director of Garuda Rainbow Foods Private Limited.

Financials of PKH Ventures Ltd IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Equity Share Capital 750.56 799.90 3,199.60 3,199.60
Reserves 14,190 49,421 61,287 64,151
Non Controlling Interests 33 19,124 11,497 12,533
Borrowings 2,387 8,295 9,824 10,889
Trade Payables 2,159 9,661 4,664 6,841
Other Liabilities 4,962 20,403 19,804 27,191
Total Liabilities 9,508 38,359 34,292 44,920
Net Block 4,301 36,817 36,702 36,567
Capital Work in Progress 480 703 695 695
Investments 11,956 1,383 1,053 710
Other Assets 1,106 39,008 44,261 42,487
Total NC Assets 17,842 77,911 82,711 80,458
Receivables 194 3,448 8,883 8,503
Inventory 25 90 365 541
Cash & Bank 196 56 1,168 6,902
Other Assets 6,069 26,045 16,964 28,245
Face value 5 5 5 5
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 16,589 24,151 19,935 16,727
Raw Material Cost 4,816 5,404 7,468 4,548
Direct Expenses 7,204 11,755 5,261 5,450
Employee Cost 985 810 377 605
Other Expenses 2,553 1,129 1,532 1,445
Other Income 312 2,315 4,605 3,944
EBITDA 1,341 7,367 9,903 8,622
EBITDA Margin 8.08% 30.50% 49.67% 51.54%
Depreciation 214 224 179 225
Interest 372 788 1167 960
Share of Profit of Associates 921 495 0 0
Profit before tax 1676 6850 8556 7037
Tax 265 1687 1915 1838
Net profit 1409 3057 4052 3818
NPM (%) 8.33% 11.54% 16.50% 18.47%
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 9MFY23
Cash From Operating Activity
Profit From Operation 1,231 7,694 9,532 6,146
Receivable 516 -38,877 -10,290 2,153
Inventory 47 -65 -275 -175
Payable 804 8,256 -5,647 2,209
Loans And Advances -1 -2 -2 -6
Other WC Items -1,457 -19,746 9,724 -9,410
Working Capital Changes -91 -50,434 -6,491 -5,229
Direct Taxes -560 56 -702 -1,429
Net Cash Inflow from Operating Activity 581 -42,683 2,338 511
Cash from Investing Activity
Fixed assets purchased -469 -1,320 -155 -34
Fixed assets sold 446 0 430 0
Investments purchased 0 -1,172 -72 343
Investment sold 0 367 0 0
Investment in subsidiaries 0 32,921 0 0
Other investing items -161 319 -385 -721
Net cash inflow from investing activities -184 31,116 -182 -412
Cash from Financing Activity
Proceeds from shares 0 592 0 0
Proceeds from borrowings 37 7,079 155 8,935
Repayment of borrowings -296 0 0 -1,558
Intrest paid fin -372 -788 -1,167 -720
Other financing items 353 4,545 -32 0
Net Cash Flow 119 -140 1,111 5,734
 

Comparison With Peers:

* Their Company is into diversified business activity and they believe that there are no listed companies in India that is engaged in such diversified business similar to the Company.

Lead Manager of PKH Ventures Ltd IPO:

  1. Monarch Networth Capital Limited

Registrar of PKH Ventures Ltd IPO:

  1. Link Intime India Private Limited

Company Address:

201, A Wing, Fortune 2000, C-3, G Block Bandra Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra, India; Tel: +91 22 7963 5174 / 3572 2456

Discussion on PKH Ventures Ltd IPO:

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