Likhitha Infrastructure Ltd's IPO opened for subscription on Tuesday at a price band of Rs 117-120.
Likhitha Infrastructure Ltd's IPO opened for subscription on Tuesday at a price band of Rs 117-120. The initial public offering of the Hyderabad-headquartered Oil and Gas Pipeline Infrastructure service provider will close on October 1, Thursday. The shares are proposed to be listed on BSE and the National Stock Exchange on October 12. Unistone Capital is the book running lead manager to the issue.
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Here are key things to know about the issue:
The IPO consists of a fresh issue of up to 51 lakh equity shares representing 25.86 percent of the post issue shareholding. The company expects to raise a total amount of up to Rs 61.20 crore.
The price band has been fixed at Rs 117-120 per share.
Objective of Issue
The proceeds of the IPO will be utilised by the company towards its working capital requirements so as to capitalise on the growing demand from the Oil and Gas sector and for general corporate purposes.
Likhitha Infrastructure is in the business of laying pipeline networks along with the construction of associated facilities, as well as providing operations and maintenance services to leading City Gas Distribution (CGD) companies in India.
The company has executed the first Trans-National Cross-Country Pipeline of South-East Asia connecting India to Nepal. Its projects are spread across over 16 states and 2 Union Territories in India and have successfully laid over 600 Kms. of Oil and Gas pipelines including steel and MediumDensity Polyethylene (MDPE) network in the past 5 fiscals.
Additionally, the Company has laid approximately 800 kms of Oil and Gas pipelines for on-going projects.
The company has a strong client base consisting of leading gas distribution companies in India including both the private and public players and a strong order book (i.e. the unexecuted portion of the much larger total contract value) of approximately Rs 663 crore as on July 31, 2020.
For FY2019-20, the company clocked a total revenue of Rs 162.79 crore, an EBIDTA of Rs 31.22 crore, Profit After Tax of Rs 19.87 crore, and Operating Cash Flow of Rs 19.15 crore. The profit margin during the year was 12.21 percent and the EBIDTA margin was 19.18 percent.
The company’s promoters Srinivasa Rao Gaddipati and Likhitha Gaddipati hold 97.46 percent stake of the pre-issue paid-up equity share capital. Lakshmi Gaddipati owns 2.5 percent shareholding in the company.
Sudhanshu Shekhar is the Chief Executive Officer while Sambasiva Rao Ketineni is the Chief Financial Officer of the company.
Sivasankara Parameshwara Kurup Pillai is the Chairman and Non-executive Independent Director of the company.
The company’s Managing Director is Srinivasa Rao Gaddipati, a first-generation entrepreneur with around three decades of technical experience.
Likhitha Gaddipati, Sri Lakshmi Gaddipati and Kutumba Rao Gaddipati are Non-executive directors, while Talpa Sai Venkata Sesha Munupalle and Jnanindra Kumar Dhar are Non-executive and Independent directors of the company.