Likhitha Infrastructure lists at a premium of 8.4% on debut

At 10.45 am, Likhitha Infrastructure was trading at Rs136.60, up 13.83% from its issue price, while the benchmark index, Sensex, fell 0.42% to 40625.25.

The issue was subscribed 9.51 times on the last day of its bidding. The issue opened for bidding on 29 September, 2020. It was set to close on 1 October, 2020. However, due to weak participation from qualified institutional buyers (QIBs), the IPO was extended till 7 October, 2020. The company also revised its price band to Rs116-Rs120 from Rs117-Rs120 set earlier.

The Hyderabad-based infrastructure company had come out with a Rs61-crore issue, small compared to most recent IPOs on the main board, with a final issue price of Rs120 per share.

"Most IPOs this year have done well on listing. But we don't have any such expectation from Likhitha Infrastructure," said Keshav Lahoti, Associate Equity Analyst at Angel Broking.

The public issue comprised a fresh issue of 5.1 million equity shares, representing 25.86% of post issue paid up equity. The company proposes to utilize the IPO proceeds towards meeting its working capital requirements, general corporate purposes and issue expenses.

It has executed projects in more than 16 states and two UTs in India. In the last five fiscals, it has successfully laid 600 km of oil and gas pipelines. Likhitha is also associated with the execution of the first-ever Trans-National Cross-Country Pipeline of South-East Asia connecting India and Nepal in 2019.

The company recorded sales of Rs161.24 crore and profit after tax of Rs19.88 crore in the year ended on 31 March, 2020.

Likhitha is an oil and gas infrastructure service provider in India, focused on laying pipeline networks, along with the construction of associated facilities and providing operations and maintenance (O&M) services for city gas distribution projects in India.