Likhitha Infrastructure IPO

Likhitha Infrastructure IPO Details

Likhitha Infrastructure Ltd is a leading pipeline laying company in India. Started in 1998, Likhitha infrastructure’s business consists of Cross Country Pipelines and associated facilities, City Gas Distribution including CNG Stations, and (iii) Operation & Maintenance of CNG/PNG services.

Likhitha Infra works with all major PSU’s and CGD companies all over India. They have 20+ years of rich experience with operations spread across several states like Karnataka, Delhi, West Bengal, Gujarat, Andhra Pradesh, Telangana, Kerala, Madhya Pradesh, Jharkhand, Bihar, Chandigarh, Haryana, Orissa and Uttar Pradesh. Likhitha Infrastructure is the first execution company from India to execute the first ever Trans-National Hydrocarbon (Multi-product) Pipeline Project between India and Nepal.

• The total Issue Size is 5.1mn shares (Rs. 596.7 - 612mn) of Rs.10 each
• Likhitha Infrastructure shipbuilders IPO consists only of Offer for Sale portion. OFS is of 30.6mn shares Shares and will be listed in the National and Bombay Stock Exchange
• With this IPO; Likhitha Infra intends to meet the capital requirements and general corporate purposes

Likhitha Infrastructure IPO Review/Ratings

Key Competitive Strengths

1. A strong presence in India with significant experience
2. Efficient business model
3. Strong financial performance
4. Scalability of operations
5. Strong project execution capabilities
6. Long term relationship with clients and repeat business
7. Highly experienced management team
8. Diverse fleet of sophisticated equipment

Risks and Concerns

1. Subdued economic activities post Covid19 led lockdown
2. Slower expansion in gas/CGD pipeline network
3. Revenue concentration risk
4. Intense competition
5. Difficulty in maintaining the profitability
6. Unfavorable regulation

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Likhitha Infrastructure IPO Fundamental Analysis

• Revenue from Operations increased from 1,394.8 mn in FY 19 to 1612.4 mn in FY 20. This is a growth of 15.6%
• The Net Profit increased from 178.6 mn in FY 19 to 198.8 mn in FY 20. This is a growth of 11.3%
• Likhitha is an O&G infrastructure service provider in India, focused on laying pipeline networks along with the construction of associated facilities and providing operations & maintenance (O&M) services for CGD projects in India.
• Likhitha’s client base comprises established players in the O&G industry, both in the public and private sectors. Prominent names include GAIL, BPCL, GGL, HPCL, IGL, IOAGPL, IOCL, ONGC, TGPL, etc.
• Promoter holds a 99.96% stake in the company and post-IPO this will come down to 74.11%. Public holding will increase from current 0.04% to 25.89%
• Price to Earnings Ratio (P/E) = 11.9
• Debt to Equity = 0
• Return on Equity (ROE) = 28.4%
• Return on Assets (ROA) = 19.7%
• Return on Capital Employed (ROCE) = 37%
• Earnings Per Share (EPS) = 10.1

Online Procedure to Apply For Likhitha Infrastructure IPO

1. Go to the IPO Section => IPO Listing => Open IPO.
2. On tapping Likhitha Infrastructure IPO, you can directly click on Subscribe to apply or even view the IPO details.
3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
4. Once you select 'Subscribe'. Your bid will be executed.
5. You can check the status of your IPO bid in the IPO Transactions section.