Likhitha Infrastructure IPO. Is it worth subscribing?

Likitha Infrastructure IPO

Brief‌ ‌about‌ ‌Company:

Established in the year 1998, The Company is primarily an infrastructure oriented company with a portfolio across India and the Indian sub-continent. Likhitha Infrastructure limited is the first company in India to execute the ‘Trans-National’ Cross country Hydrocarbon Pipeline Project between India and Nepal. 

With over 2 decades of existence, the company had vide varieties of experience and has spread its geographical presence across 16+ states and 2 Union Territories in India. With a prominent presence in states such as Andhra Pradesh, Bihar, Chandigarh, Delhi, Gujarat, Haryana, Kerala, Madhya Pradesh, Orissa, Telangana, Uttar Pradesh, West Bengal, etc. 

Likhitha Infrastructure is currently working will the major Public Sector Undertaking’s (PSU’s) and Certified Graduate Builder (CGB’s) all around India. The Company is certified with ISO 9001:2015 by International Certification Services Pvt Ltd for specialization in the field of Design, Construction of Cross-country pipelines, City Gas Pipelines, and Civil Constructions.

The company has three major business lines:

  • Cross Country Pipelines and associated facilities.
  • City Gas Distribution including CNG Stations; and
  • Operation & Maintenance of CNG/PNG services.

What are it’s business portfolio allocations?

The Company is amongst the major Oil & Gas Pipeline infrastructure service provider for leading Oil & Gas Distributors in India. The Company has been engaged in various businesses like Pipeline Laying, providing comprehensive erection, testing, and commissioning, and others. 

Likhitha Infrastructure has executed many projects over the years. The company has an excellent track record of timely execution and quality delivery to its clientele base. With an experienced team which comprises of personnel having technical, operational, and business development experience. The Likhitha Infrastructure has been able to provide with best quality & customer satisfaction. 

As far as business competitiveness is concerned. There is no listed company in India which are engaged in the same line of business and provision of service that ‘Likhitha Infrastructure Ltd’ provides. Hence, a certain amount of competitive edge be noted.

Likhitha Infrastructure main services are;

  • Terminals construction.
  • Cross Country Pipelines.
  • Compressed Natural Gas (CNG) station. 
  • Oil & Gas Pipelines.
  • City Gas Distribution Projects.
  • Operation and Maintenance (O & M) Services.

Who is the owner of Likhitha Infrastructure Limited?

Likhitha Infrastructure Limited is led by Mr.Gaddipati Srinivasa Rao. The Management is led with a wide technical experience of over 3 decades. And, Mr. Srinivasa Rao Gaddipati and Ms. Likhitha Gaddipati are the promoters of the company. Together, the promoters own 99.96% of ‘Likhitha Infrastructure’ – Pre IPO. 

The IPO is at a price band Rs.117 to Rs.120 per equity share of the face value of Rs.10 each. The floor price is 11.70 times of the face value and the cap price is 12 times of the face value. Bids can be made for a minimum of 125 equity shares and in multiples of 125 equity shares thereafter.

What are the company’s major Strengths & Competitive advantages?

Apart from being into the business for over 2 decades with management experience of over 3 decades. The Companies major strength are as follows;

  • Has a strong presence with significant experience.
  • Equipped with an efficient Business Model.
  • Equipped with a diverse fleet of sophisticated equipment.
  • Strong financial performance over the years.
  • Scalability of operations, efficiency in management.
  • Strong project execution capabilities alongside an experienced team to execute.
  • Long term relationship with clients and repeat business.
  • Highly experienced Management Team.

How’s the company’s financial performance?

For the Financial Year (FY) 19-20; Likhitha Infrastructure had revenue of Rs.163 crore with a Compound Annual Growth Rate (CAGR) for the past 3 FY’s of 22%. The company has given a double-digit growth rate over the years. 

Financial figures:

Sl.NoParticularsMarch 31, 2020March 31, 2019March 31, 2018
1Revenue (In Rs. Crores)162.79140.5488.60
2EBITDA (In Rs. Crores)31.2229.9712.70
3EBITDA Margin (In %)19.18%21.33%14.34%
4Profit After Tax (In Rs. Crores)19.8717.857.16
5PAT Margin (In %)12.21%12.70%8.08%
6Average ROCE (In %)58.53%73.55%48.78%
7Average RONW (In %)33.06%43.16%24.83%
8EPS (In Rs. Before Bonus Effect)13.5939.6815.92
9EPS (In Rs. After Bonus Effect)13.5912.214.9
10Net Asset Value Per Share (In Rs. Before Bonus Effect)47.83111.8172.07
11Net Asset Value Per Share (In Rs. After Bonus Effect)47.8334.422.17
12Operating Cash Flow (In Rs. Crores)
13Debtors (In number of days)31.3636.5379.71
14Working Capital (In number of days)31.334.094.72

Likhitha Infrastructure Limited – IPO details;

Sl.NoIPO Issue detailsInformation
1Issue Open date29th September, 2020
2Issue Close date1st October, 2020
3Share price bandRs.117 - Rs.120 per share
4Issue Size (in count)51,00,000 Equity shares
5Fresh Issue66,26,506 Equity shares
6Listing SiteNSE & BSE
7Total valueRs.61.20 crore at upper end valuation.
8Trading hours10:00 AM to 5:00 PM
9Retail bid - Minimum share1 lot (125 shares)
10Retail bid - Minimum amountRs.15,000/-
11Retail bid - Maximum share13 lots (1,625 shares)
12Retail bid - Maximum amountRs.1,95,000/-
13Face ValueRs.10 per share
14Promoter stakePre IPO (99.96%); Post IPO (74.11%)
15Finalisation of Basis of Allotment7th October, 2020
16Initiation of Refunds8th October, 2020
17Credit of Shares to DEMAT Account9th October, 2020
18IPO Share listing date12th October, 2020

For more information, feel free to reach us atTwitter

How to apply for  Likhitha Infrastructure Limited – IPO?

Steps to be followed to apply for “Likhitha Infrastructure Limited” via Zerodha console:

Step 1: Visit the Zerodha website and login to Console.

Step 2: Go to Portfolio and click the IPOs link.

Step 3: Go to the ‘Likhitha Infrastructure Limited’ row and click the ‘Bid’ button.

Step 4: Enter your UPI ID, Quantity (In lots), and Price.

Step 5: ‘Submit’ IPO application form.

Step 6: Visit the UPI App (net banking or BHIM) to approve the mandate.

Do not have a brokerage account? Apply for Zerodha – India’s top brokerage service. 

Disclaimer: All the information on this website is published in good faith and for general information purpose only.

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8 thoughts on “Likhitha Infrastructure IPO. Is it worth subscribing?”

  1. Cindi Shay Boaten

    Hello Dear, are you actually visiting this website daily, if so then you will absolutely take a nice experience.

    1. Hi Cindi,

      Didn’t quite get you there. If you mean by visiting this website? Yeah. for a few days, I was busy with my personal work.

      I Will update hereon. Regularly 🙂
      Thank you for checking out.

  2. Hi Rakshith,

    Do you write on all the IPO’s? Cause I didn’t get more info other than this and some other.
    Anyways, brief and to the point, you have written.

    Thank you ❤️

  3. Hi Pai,

    Write to all the upcoming IPO’s. It’ll help us a lot.
    Also, tell whether you are subscribing to the IPO. Give more of your opinion.
    Thanks 🙂

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