PKH Ventures' IPO, worth an estimated Rs 379 crore, hit Dalal Street on Friday, June 30. The initial share sale comprises fresh issuance of shares worth Rs 270 crore and an offer for sale (OFS) worth Rs 109 crore. Mumbai-based PKH Ventures operates in the businesses of construction and development, hospitality and management services. 

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Zee Business Managing Editor Anil Singhvi has a clear 'avoid' call on the public offer. "There is one thing that is positive about the company but a lot of negatives," he said.   

EDITOR'S TAKE | What market wizard Anil Singhvi makes of PKH Ventures

Market guru Anil Singhvi pointed out that PKH Ventures has a weak set of financials, with a persistent decline in revenue. The company is barely profitable without its other income, and is facing an increase in debt, he said. 

PHL Ventures has a weak cash flow, and its price-to-earnings ratio, above the 30 mark, is high, Singhvi added.

Here are some of the key points he identified about the company:

Positives

  • Opportunist promoters; open to different ideas to make money

Negatives

  • Not sure which business the PKH Ventures management wants to focus on
  • The company has opened three hotels over a period of 10 years
  • The company's corporate structure appears to be complex (nine subsidiaries)
  • The company is in the hydro projects business without any experience
  • Not clear why the company is in FMCG and Ayurveda spaces
  • The company gets reports for its consultancy business made outside

Here are some of the other important things to know about the PKH Ventures IPO:

The subscription window of the PKH Ventures IPO, which opened on June 30, closes on July 4. Potential investors will be able to bid for shares under the PKH Ventures IPO in a price band of Rs 140-148 in multiples of 100 (translating to Rs 14,000-14,800 per lot). 

The PKH Ventures stock will likely be listed on bourses BSE and NSE on July 12. Read more on the PKH Ventures IPO

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