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PKH Ventures IPO comprises of OFS of ~7.4mn shares and a Fresh Issue of 18.3mn shares, aggregating to Rs 379 crore. The price band for the issue is fixed at Rs.140 to Rs.148 per share. The lot size is set for 100 shares. Mumbai based, PKH Ventures is engaged in the business of Construction & Development, Hospitality, and Management Services.

About PKH Ventures Limited:

• PKH Ventures was incorporated in 2000 by Pravin Kumar Agarwal
• It is is primarily engaged in the business of construction and development (C&D), hospitality and management services.
• PKH Ventures Ltd also provides additional services like mechanical, electrical, and plumbing works; apart from annual maintenance contracts. It has developed the Golden Chariot Hotel & Spa, Vasai, and Golden Chariot Boutique Hotel near Mumbai International Airport.
• The Company, has been managing and operating restaurants, lounges, retail outlets, food stalls, bars, staff canteens and food supply at various airports across the country.
• Company developed two hotels in Mumbai viz., Golden Chariot Vasai Hotel & Spa and Golden Chariot, The Boutique Hotel near Mumbai International Airport (“Mumbai Hotels”) and has been owning, managing and operating the Mumbai Hotels since FY 2015.
• It has expanded its Hospitality operations into the restaurant space in Mumbai city by opening restaurants in the year 2013 under the brand name Golden Chariot and Balaji. Our Restaurant Casablanca at Sahara Star, Mumbai commenced operations in the year 2017. The QSR business under the brand name Zebra Crossing, Hardy’s Burger and Mumbai Salsa were also launched in the year 2017.
• In November 2021, our Company extended its Hospitality offering by undertaking the management and operations of Juvana Resort and Spa, a luxury resort at Aamby Valley, Lonavala developed by Golden Chariot Retreats and Infra Private Limited, its Group Company. The Company has been awarded with three (3) Government Hotel Development Projects namely, Rajnagar Garhi Project, Pahadikhurd Project and Tara Resort Project in the State of Madhya Pradesh on DBFOT basis by way of a letter of award each dated November 4, 2022 from the Madhya Pradesh Tourism Board.
• Incorporated in 2010, its subsidary Garuda Construction constructed the Golden Chariot Vasai Hotel & Spa in the year 2014 and refurbished Golden Chariot, The Boutique Hotel in the year 2015. In the year 2017, Garuda Construction started undertaking Civil Construction works contracts for Third Party Developers and Promoter Group for the development of residential buildings in the MMR. Garuda Construction is currently engaged in the Civil Construction of six (6) residential projects for Third Party Developers and Promoter Group in the MMR. As of March 15, 2023, the Garuda Construction’s Third Party Developer Order Book was ₹ 46,827.59 lakhs.
• PKH Ventures Limited was awarded two Government Projects i.e. development of a 16 MW hydropower plant at Halaipani, Anjaw district in the State of Arunachal Pradesh and development of 42.42 acres entertainment centre at Ambazari, Nagpur.

Penta PKH Ventures IPO: Financials

PKH Ventures IPO: Salient Points

• The company has multiple in-house development projects in the pipeline, 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.
• The company has been awarded with two government projects via the Hydro Power Project and the Nagpur Project, being executed through its Subsidiaries/SPVs.
• In the hospitality sector, PKH Ventures Ltd. owns, manages, and operates hotels, restaurants, QSRs (Quick Service Restaurants), and spas, as well as engage in sale of food products.
• The company developed the Delhi Police Headquarters in Apr’21, which involved the construction of twin towers of 17 storeys.
• The company has an asset light model for its civil construction business and relies mostly on third party suppliers for equipment and labour.
• Aggregate trade receivables as of December 31, 2022, were Rs 88.0471 crore with receivables outstanding for more than six months being Rs 24.3513 crore (or 27.65% of aggregate receivables).
• On FY22 earnings the IPO is valued at 30x P/E and 6.5x EV/Sales.
• If indications given by management turn out to be correct, The company is poised for growth in the coming years led by multiple projects in diverse sector. Howverebit is into too many sectors.
• The company has been awarded with 3 Government Hotel Development Projects,
• It has done acquisition of sick company, Amar Remedies but this is subject to certain litigations.
• It restructured its loan i.e. tenure of repayment of borrowing availed by Company from Saraswat bank during COVID period.
• I may skip this issue but can apply in PKH Ventures IPO If I observe good subscriptiion towards the end hours on Day3.
• GMP as reported on social media has been Rs. 8-10. There are some reports of speculative tendencies in the stock but Iam not in a position to confirm this.
• Please do your own diligence as this IPO is strictly for risk takers given the multiple sectors in which PKH Ventures operates.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.