PKH Ventures IPO subscribed 17% on day 2 with limited investors’ interest

3 Jul 2023 , 12:09 PM

The initial public offer of PKH Ventures has received muted response from all investors’ classes which opens for subscription on June 30 to raise up to Rs 379 crore. The IPO will be closing on July 4. Click here to subscribe the IPO.

On the second day of bidding, the public issue has achieved a subscription rate of 17%, with the retail portion being subscribed at 25% by 11.50 PM. In the Non-Institutional Investor (NII) category, the public offer has been subscribed at 25%, while in the Qualified Institutional Buyer (QIB) category, it has reached 11% subscription.

The company operates in the construction and development, as well as hospitality and management services sectors. In FY22, its net profit recorded a significant growth of 32% to reach ₹40.5 crore, compared to the previous year. However, its revenue experienced a decline of 17.4% to ₹199 crore during the same period.

During the period of FY20-22, the company demonstrated strong growth with its revenue, EBITDA, and adjusted net profit growing at a compounded annual growth rate (CAGR) of 10%, 127%, and 70% respectively. In FY22, the company’s revenue reached Rs1,994 million, while EBITDA stood at Rs530 million. The EBITDA margin showed a significant increase from 6.2% in FY20 to 26.6% in FY22. The adjusted net profit for FY20, FY21, and FY22 were recorded at Rs141 million, Rs306 million, and Rs405 million respectively.

The company’s return ratios are healthy, with an average Return on Equity (RoE) and Return on Capital Employed (RoCE) of 8.5% and 4.6% respectively during FY20-22. The average Net Asset Turnover during the same period was at 1.7 times.