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Likhitha Infrastructure IPO: Study Before Subscribing

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It’s a busy week for the IPO market, as three IPOs are together opening for subscription. One of the IPO in the list is an oil & gas pipeline infrastructure service provider Likhitha Infrastructure. Compared to other IPOs in the market, the size of this issue is small at approx Rs 60 cr. Here’s everything you need to know before you invest in Likhitha Infrastructure IPO.

About Likhitha Infrastructure

Likhitha Infrastructure Ltd is an oil and gas pipeline infrastructure service provider in India. The company is engaged in providing oil & gas pipelines, city gas distribution projects, Cross-Country Pipeline Projects, and operations and maintenance services as well.

It is the first company that has executed 10.75” OD x 69 Kms Petroleum Product Pipeline, the first Trans-National Cross – Country Hydrocarbon Pipeline Project between India and Nepal in 2019.

Company has successfully laid over 600 Kms. of Oil and Gas pipelines including steel and Medium-Density Polyethylene (“MDPE”) network in past 5 fiscals. The Company has also laid approximately 800 kms of Oil and Gas pipelines for on-going projects.

Company has two broad business operations: Pipeline infrastructure projects and O&M Services.

Likhitha Infrastructure IPO Details

OPENS ON: SEPT 29, 2020
CLOSES ON: OCT 1, 2020
Price band: Rs 117- Rs 120
Lot size: 125 shares
1 lot costing: Rs 15000
Listing on: NSE, BSE
Issue size: Rs 61.2 cr
Shareholding: Promoter holding to go down from 99.96% to 74.11% post- issue
Will list on exchange on Oct 12, 2020

 

Use of funds:
1. To meet the general working capital requirements of the business.
2. To meet general corporate purposes.
3. To meet IPO issue expenditures.

Interesting facts about Likhitha IPO:

  • It has presence (including past operation) in more than 16 states and 2 Union Territories in India.
  • Revenue contribution from pipeline infrastructure projects in FY19-20 was at 78.75% from 92.62% in FY17-18. Also revenue contribution from O&M services in FY19-20 was at 21.25% from 7.38% in FY17-18.
  • Total Order Book as of July 31, 2020 was approximately Rs. 66,258.97 Lakhs.
  • Company intends to strengthen its presence all over the country and play a bigger role in the CGD system as the Government is focusing to substantially increase the CGD network and also to become a prominent player in O&M operations of CGD network.

Marwadi Shares & Finance Ltd have a ‘SUBSCRIBE’ recommendation for Likhitha Infrastructure. To apply for the Likhitha Infrastructure IPO you can do it from our website Marwadi Shares & Finance Ltd.

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