Likhitha Infrastructure Limited IPO: Things you should know!

28 Sep 2020  Read 470 Views

The year 2020 has been one which will be written in the diaries of history. Nothing that happened this year could be said to be in favour of humans. Whether it is the novel coronavirus pandemic which knocked down the world to its knees or the forest fires of America, Earthquakes of Delhi or the massive explosion of Beirut; all have been the events which made 2020 a black year.

Amidst all this, the markets all over the world suffered a lot as well. Continuing with great fluctuations, no one knows what would be the future. 

However, there are various companies in the Indian market, which have remained focused even during such scenarios and have been able to achieve their goals of IPO by this year itself. This list involves UTI AMC, Angel Broking, Rossari Biotech, Happiest Minds etc. 

Another company has been added to the list, which is Likhitha Infrastructure IPO. So let us sneak in to see all the details of the upcoming IPO. 

A Brief About Likhitha Infrastructure Ltd.

Likhitha Infrastructure Ltd is an oil and gas pipeline infrastructure service provider in India. It was incorporated 22 years ago in 1998. The company is engaged in providing oil and gas pipeline, city gas distribution projects, cross country pipeline projects and operations and maintenance services as well. 

One of the big achievements of Likhitha Infrastructure Ltd is that it is the first company that has executed the first Trans-National Cross Hydrocarbon Pipeline Project between India and Nepal. It has quite an impressive client base in India which includes both private as well as public players. ONGC, IndianOil, GAIL, HCG, etc. are among these client connections. 

The company is known for spreading it’s geographical presence in a quite wise manner that to only with 22 years of experience in the business. It includes 16+ states and 2 union territories such as Delhi, Telangana, West Bengal, Gujarat, UP, Kerala, Orissa, etc. 

The promoters of Likhitha Infrastructure Ltd are:

  1. Srinivasa Rao Gaddipati.
  2. Ms. Likhitha Gaddipati. 

Talking about the Business Process of Likhita Infrastructure Ltd, the contracts are primarily given through a competitive bidding tender method based on combinations of factors amongst which technical qualifications, proper project team, schedule, past performance on similar projects, and obviously the bid amount are the major determining factors. 

The financial strength and technical capabilities are the criteria which are required to be met by the bidder to prequalify for the activities. 

The Business Strategies of Likhitha Infrastructure Ltd are as follows: 

  • Retaining Skilled Manpower.
  • Optimum Utilization of Resources.
  • Further Growth in their O&M service offerings. 
  • Focus on Performance and project executions. 
  • Continue to focus on safety and environmental standards. 
  • Develop client relationships.

Financials of Likhitha Infrastructure Ltd.

To get an insight into its worthiness and analyse before taking a call on the Likhitha Infrastructure IPO, let’s have a look at what the company has to show in its financial statements. 

Have a look at the table to know the movements of the various major financial figures of the company, under different time intervals.

Particulars

For the year/period ended (₹ in lakhs)

 

31-Mar-20

31-Mar-19

31-Mar-18

Total Assets

10,085.61

8,457.38

6,722.91

Total Revenue

16,279.02

14,054.68

8,860.56

Profit After Tax

1,987.93

1,785.51

716.22

Details Of Likhitha Infrastructure Ltd. IPO

Likhitha Infrastructure Ltd IPO is a mainboard IPO of 5,100,000 equity shares of the face value of Rs. 10 aggregating up to Rs. 61.20 crores. The minimum order quantity is 125 shares with the issue price of Rs. 117- Rs. 120 per equity share. 

The IPO will be opening in the markets on 29 September 2020 and will be closing on 1 October 2020. Obviously, the shares are proposed to be listed on BSE and NSE with Bigshare Services Pvt. Ltd. as the registrar of the IPO. 

IPO Date

Sep 29, 2020 - Oct 1, 2020

Issue Type

Book Built Issue IPO

Issue Size

5,100,000 Eq Shares of ₹10
(aggregating up to ₹61.20 Cr)

Fresh Issue

5,100,000 Eq Shares of ₹10
(aggregating up to ₹61.20 Cr)

Face Value

₹10 per equity share

IPO Price

₹117 to ₹120 per equity share

Market Lot

125 Shares

Min Order Quantity

125 Shares

Listing At

BSE, NSE

Likhitha Infrastructure Ltd. IPO Lot size and Price

Application

Lots

Shares

Amount (Cut-off)

Minimum

1

125

₹15,000

Maximum

13

1625

₹195,000

Likhitha Infrastructure Ltd. Promoter Holdings

Pre Issue ShareHolding

99.96%

Post Issue Shareholding

74.11%

Objects of the issue

The net proceeds from the Likhitha Infrastructure IPO will be used for the following purposes:

  • To meet general corporate puhrposes. 
  • To meet the IPO issue expenditures. 
  • To meet the general working capital requirements of the business. 

Important dates

Now talking about the important dates of the Likhitha Infrastructure IPO, we already said that opening and closing are on 29 September and 1 October, respectively, finalization of the basis of allotment is on 7 October, initiation of refund on 8 October, credits of share to delay account on 9 October and IPO listing on 12 October. 

Important Points to Note

Before making a decision on whether to subscribe to the issue or not, you should make a proper analysis of everything. It is important to look into the IPO from every dimension and aspect. 

The price band is fixed at Rs.117-Rs.120 per share and the fundraising targets are from Rs 59.67 crores - Rs 61.20 crores. It also issues public issues. 

Other than that, the other factors which have to be kept in mind are the company profile, order book, business strategies, strengths of the company, financials and peers, the objective of the issue, and the management and promotions.

Summing Up

Suppose you are looking to subscribe to an IPO. In that case, this oil and gas infrastructure company could be the one meeting most of your needs as the financials, business profile, history, achievements of Likhitha Infrastructure Ltd, appear to be quite satisfactory. 

However, as mentioned earlier, make sure you compare the Likhitha Infrastructure Ltd. IPO with the other IPOs in the market which are being offered simultaneously. 

About the Author: Aditi Sagar | 12 Post(s)

Aditi is born and brought up in New Delhi. Right now she is in the 2nd year of her college. She is pursuing graduation from Deen Dayal Upadhaya College, Delhi University with Bachelor's In Management Studies degree. 

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