PKH Ventures’ Rs 380 crore IPO opens for subscription from today. Investors can subscribe to this company till July 4. In this issue, 1.82 crore fresh shares will be issued while 73.7 lakh equity shares will be offered for sale. Under this OFS, 73.7 lakh equity shares will be sold by Praveen Kumar Agarwal.
Price band for PKH Ventures IPO
A price band of Rs 140 to Rs 148 has been fixed for PKH Ventures IPO. About 50 per cent of the net offer has been reserved for QIB investors while 15 per cent has been reserved for the NII category. 35 percent of the shares will be reserved for retail investors.
Gray market premium for PKH Ventures IPO
The premium for PKH Ventures’ IPO is currently Rs 8-9 per share. PKH Ventures is engaged in the business of manufacturing and developing. The company is also into hospitality and management services. Its civil construction business is carried out through subsidiary and construction arm Garuda Construction. The company undertakes civil construction for third party developer projects and has been awarded two government projects and three hotel development projects. In March 2022, the company had an order book of Rs 560 crore. For the period ending December 2022, the company reported revenue of Rs 125 crore, while profit after tax stood at Rs 28.6 crore.
To subscribe or not to PKH Ventures IPO?
Since the valuation of this IPO seems high, analysts have mixed opinions for it. The company has a diversified business model and operates in the asset light construction segment. According to Stocksbox, the issue is valued at 24.8 times FY23 annualized earnings, if the upper band is considered. That is, the price of this share has been kept very high. As a result it is advisable to avoid this problem. Meanwhile, Hansex Securities has advised PKH Ventures to file for an IPO keeping in view the medium to long term strategy.
The lot size of PKH Ventures IPO is 100 shares. That is, a small investor will have to invest at least Rs 14,800. Small investors can apply for a maximum of 13 lots i.e. 1300 shares while large investors can apply for a minimum of 14 lots and a maximum of 67 lots.
