KHFM Hospitality IPO – Review, Allotment, Subscription, GMP & DRHP
Last Updated Date: Nov 17, 2022KHFM Hospitality Limited is one of the reputed integrated business services providers focused on providing integrated hospitality and facility management services (IHFM). KHFM Hospitality IPO comprises of 29,50,000 Equity shares, face value of Rs.10 each.
Let’s have a detailed review of the company and analytics of the KHFM Hospitality IPO release date, IPO offer price, subscription, KHFM Hospitality IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.
KHFM Hospitality IPO Review & Ratings
| IPO Ratings & Review | |
| Criteria | Ratings |
| Industry Sentiments | 8.5/10 |
| Industry Ranking | 7.8/10 |
| Company Background | 7.9/10 |
| Company Reputation | 6.9/10 |
| Competitive Edge | 6.7/10 |
| Financial Statements | 7.8/10 |
| Popularity Index | 7.4/10 |
| Promoters Reputation | 7.7/10 |
| Retail Appetite | 6.9/10 |
| Top Brokers Review | 7.9/10 |
| Overall Ratings | 7.1/10 |
| Star Ratings | ★★★★☆ |
Summary of KHFM Hospitality Limited IPO
KHFM Hospitality Limited is one of the reputed integrated business services providers focused on providing integrated hospitality and facility management services (IHFM). The Company provide the entire range of hospitality and facility management services including mechanized housekeeping, guesthouse management, pest control, gardening and security service, etc.
The IHFM segment of their services provide integrated hospitality and facility management solutions to corporates including MNCs, government organizations like Railways, Municipal Corporations Public Sector Undertakings (PSUs) and other commercial establishments. The Issue comprises of a Public Issue of 29,50,000 Equity shares of face value of Rs.10.00 each fully paid up.
From FY 2014-15 to FY 2016-2017, as per the Restated Financial Statements,
From fiscal 2016 to 2017, company’s revenue from operations and net profit has increased at a growth rate of 42.19% and 0.40%, respectively.
For the period ended March 31, 2018, FY 2016-17 and FY 2015-16, its revenue from operations was Rs. 4,499.00 Lakhs, Rs. 4,478.60 Lakhs and Rs. 4,482.55 Lakhs, respectively representing growth of 0.25% from the FY 2016-17 to FY 2017-18. For the period ended March 31, 2017, FY 2016-17 and FY 2015-16 our net profit was Rs. 301.60 Lakhs, Rs.271.48 Lakhs and Rs. 290.21 Lakhs, respectively, representing a growth of 11.09 % from the FY 2017-16 to FY 2018-17.
- During the financial year 2017-18 the Other Income of our company increased to Rs. 9.45 Lakhs as against Rs.9.47 Lakhs for the financial year 2016-17.
- Company’s Net Profit after tax for the year 2016-17 is Rs. 222.41 Lakhs from the year 2015-16 of Rs.181.04 Lakhs showing an increase of 22.85% from last year, showing remarkable performance.
The Promoter of this company is Mr. Ravindra Hegde and Mrs. Sujata Hegde. The lead manager to the issue is Bonanza Portfolio Limited and the Registrar to this issue is Bigshare Services Private Limited .
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KHFM Hospitality IPO Date
The opening and the closing date of KHFM Hospitality Limited IPO is Mar 22, 2019 – April 4, 2019.
KHFM Hospitality IPO Subscription
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – Mar 22 | – | 0.01x | 0.01x | 0.01x |
| 2nd Day – Mar 25 | – | 0.11x | 0.08x | 0.09x |
| 3rd Day – Mar 26 | – | 0.15x | 0.20x | 0.17x |
| 4th Day – Mar 27 | – | 0.20x | 0.45x | 0.31x |
| 5th Day – Mar 28 | – | 0.21x | 0.46x | 0.32x |
| 6th Day – Mar 29 | – | 0.25x | 0.48x | 0.34x |
| 7th Day – April 1 | – | 0.52x | 0.49x | 0.48x |
| 8th Day – April 2 | – | 0.59x | 0.69x | 0.61x |
| 9th Day – April 3 |
– | 0.94x | 1.11x | 0.97x |
| 10th Day – April 4 | – | 1.34x | 1.48x | 1.41x |
| Shares Offered or Net Issue | – | 1,327,500 | 1,327,500 | 2,802,500 |
The shares subscribed by the public will be updated here.
KHFM Hospitality IPO Allotment Status
Here, you can find the Allotment Status of this IPO.
| Basis of Allotment Finalization | 8-Apr-19 |
| Refunds Initiation | 9-Apr-19 |
| Credit of Shares to Demat Account | 9-Apr-19 |
| Share Listing Date | 11-Apr-19 |
KHFM Hospitality IPO Price Band
The face value of each share is Rs 10, but the price band of the IPO is Mar 22, 2019 – Mar 27, 2019.
KHFM Hospitality IPO Equity Share Offering
29,50,000 Equity Shares of Rs 10/- each and Issue Price is Rs. 38 per Equity Share (including a share premium of Rs. 28.00 per Equity share) aggregating Rs. 1121.00 lakh.
KHFM Hospitality Limited – Company Overview
KHFM Hospitality Limited us one of the reputed integrated business services providers focused on providing integrated hospitality and facility management services (IHFM). The Company provide the entire range of hospitality and facility management services including mechanized housekeeping, guesthouse management, pest control, gardening and security service, etc. The IHFM segment of their services provide integrated hospitality and facility management solutions to corporates including MNCs, government organizations like Railways, Municipal Corporations Public Sector Undertakings (PSUs) and other commercial establishments.
As on June 30, 2018 the Company was catering to over 71 clients through over contracts executed with such clients for providing various IHFM services to them. Their clients span various industries including education sector, Municipal Corporations, Railway Stations, Amusement and Water Parks, Banks, Airport, Government Guest-houses, among others
The Company is promoted by Mr. Ravindra Hegde and Mrs. Sujata Hegde and is the guiding force behind the growth and strategic decisions of the Company.
Competitive Strengths of KHFM Hospitality Limited :
- Experience team of professionals with domain expertise
- Experience and track record
- Technology
- Diverse Portfolio of services offered
- Direct operation and widespread domestic presence
Business strategies of KHFM Hospitality Limited :
- Growing presence in Education, Corporate Parks, Commercial Buildings, Hospitals.
- Focus on increasing geographical presence
- Enhancing their existing customer base and continue to develop Client &Vendor relationships
- To continue focus on providing Quality Services
KHFM Hospitality Limited – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & Lakhs) | |||||
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 5,159.34 | 4,060.44 | 3,742.04 | 3,331.94 | 3,332.17 |
| Total Revenue | 4,508.45 | 4,488.07 | 4,498.44 | 4,612.23 | 4,597.31 |
| Total Expense | 3,808.59 | 3,886.22 | 3,880.93 | 4,004.10 | 3,987.32 |
| Profit After Tax | 222.41 | 181.04 | 195.05 | 209.63 | 213.36 |
Earnings per Equity Share (in Lakhs)
| 31-Mar-18 | 31-Mar-17 | 31-Mar-16 | |
| Basic & Diluted | 3.29 | 2.68 | 2.89 |
From the above statements, one could find that the KHFM Hospitality Limited may perform well.
KHFM Hospitality IPO – Promoters
The Promoter of this company are:
- Mr. Ravindra Hegde
- Mrs. Sujata Hegde
List of Related Parties (Key Managerial Personnel)
- Ravindra Hegde
- Naveen Carvallo
- Shekhar Prabhakar Thigaley
Interest in promotion of the Company
Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.
Property Interest
The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.
Interest in Intellectual Rights of the Company
Promoters has not shown any interest in acquiring the intellectual rights of the company.
KHFM Hospitality IPO Offer Details or Issue Details
| Particulars | No. Of Equity Shares |
| Equity Shares Offered | Issue of upto 29,50,000 Equity Shares having face value of Rs. 10.00 each at a price of Rs. 38.00 per Equity Share (including a share premium of Rs. 28.00 per Equity share) aggregating Rs. 1121.00 lakh. |
| Of which: | |
| Reserved for Market Makers | Issue of upto 1,47,500 Equity Shares having face value of Rs. 10.00 each at a price of Rs. 38.00 per Equity Share aggregating Rs. 56.05 lakh |
| Net Issue to the Public | Issue of upto 28,02,500 Equity Shares having face value of Rs. 10.00 each at a price of Rs. 38.00 per Equity Share aggregating Rs. 1064.95 lakh |
| Of which: | |
| Retail Investors Portion | Upto 14,01,250 Equity Shares having face value of Rs. 10.00 each at a price of Rs. 38.00 per Equity Share aggregating Rs. 532.48 lakh will be available for allocation to Retail Individual Investors. |
| Non-Retail Investors Portion | Upto 14,01,250 Equity Shares having face value of Rs. 10.00 each at a price of Rs. 38.00 per Equity Share aggregating Rs. 532.48 lakh will be available for allocation to other than Retail Individual Investors |
| Equity Shares outstanding prior to the Issue | 67,50,000 Equity Shares of face value of Rs. 10/- each |
| Equity Shares outstanding after the Issue | 97,00,000 Equity Shares of face value of Rs. 10/- each |
KHFM Hospitality IPO Issue Object
These are the IPO Issue Objects of the company
- Meeting additional Working Capital Requirement
- General Corporate Purpose
KHFM Hospitality IPO – Basis of the Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors:
- Experience team of professionals with domain expertise
- Experience and track record
- Technology
- Diverse Portfolio of services offered
- Direct operation and widespread domestic presence
The relevant quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-16 | 3.29 | 12.11 | 27.20 |
| 31-Mar-17 | 2.68 | 11.62 | 239.04 |
| 31-Mar-18 | 2.89 | 13.62 | 212.22 |
- Industry P/E Ratio:
| Particulars | P/E ratio |
| 31 st March -18 | 11.55 |
- Competitive Peers:
| Particulars | Face Value (in Rs.) | EPS (In Rs.) | P/E Ratio | RONW (%) | NAV (In Rs.) |
| Kaarya Facilities & Services Limited* | 10 | 1.72 | 18.66 | 8.45% | 20.37 |
| Rithwik Facility Management Services Limited * | 10 | 2.04 | 21.42 | 5.54% | 3.69 |
KHFM Hospitality IPO Lead Managers
| Lead Managers |
| BONANZA PORTFOLIO LIMITED Bonanza House, Plot no M-2, Cama Industrial Estate, Walbhat Road, Goregaon (E), Mumbai-400 063 Telephone: +91 22 4059 5757 Facsimile: +91 22 2686 5774 Email: swati.agrawal@bonanzaonline.com Investor Grievance Email: mbgrievances@bonanzaonline.com Contact Person: Mrs. Swati Agrawal Website: www. bonanzaonline.com SEBI registration number: INM000012306 CIN: U65991DL1993PLC05228 |
KHFM Hospitality IPO Registrar to offer
| Registrar to the Offer |
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai 400 059, India. Telephone: +91 22 6263 8200 Facsimile: +91 22 6263 8299 Email: ipo@bigshareonline.com Investor grievance email:investor@bigshareonline.com Contact Person: Mr. Srinivas Dornala Website: www.bigshareonline.com SEBI Registration Number: INR000001385 CIN: U99999MH1994PTC076534 |
Other Details:
- Statutory Auditor – G.R. Shetty & Co.Chartered Accountants
- Peer Review Auditor – SVK & Associates Chartered Accountants
- Bankers to the Company – Central Bank of India, Deutsche Bank
KHFM Hospitality IPO Review by Top 10 Stock Brokers
| Top Stock Brokers Review | Company Reputation | Competitive Edge | Financial Statement | Popularity Index | Promoters Reputation |
| Angel Broking | 7.5/10 | 7.4/10 | 8.5/10 | 8.1/10 | 7.1/10 |
| Sharekhan | 7.2/10 | 7.1/10 | 8.6/10 | 8.1/10 | 7.2/10 |
| Kotak Securities | 7.3/10 | 7.5/10 | 8.4/10 | 8.1/10 | 7.3/10 |
| ICICI Direct | 7.3/10 | 7.3/10 | 8.7/10 | 8.1/10 | 7.1/10 |
| IIFL | 7.5/10 | 7.2/10 | 8.8/10 | 8.0/10 | 7.1/10 |
| Edelweiss | 7.5/10 | 7.4/10 | 8.4/10 | 8.3/10 | 7.2/10 |
| Zerodha | 7.4/10 | 7.1/10 | 8.5/10 | 8.1/10 | 7.0/10 |
| 5Paisa | 7.1/10 | 7.1/10 | 8.4/10 | 8.1/10 | 7.1/10 |
| Karvy | 7.4/10 | 7.3/10 | 8.2/10 | 8.1/10 | 7.1/10 |
| Motilal Oswal | 7.1/10 | 7.1/10 | 8.6/10 | 8.3/10 | 7.2/10 |
KHFM Hospitality IPO Grey Market Premium
The KHFM Hospitality IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X.
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