Likhitha Infrastructure
Mainboard₹61.20 Cr issue
+8.42%
Listing gain over issue price
Issue size
₹61.20 Cr
1 lot at cut-off
₹15,000
Lot size
125shares
Open
29 Sep 2020
Close
07 Oct 2020
Allotment
12 Oct 2020
Listing
15 Oct 2020
Listing performance
Issue price
₹120
Listed at
₹130.10
Listing-day close
₹136.60
Latest price
—
Listing gain
+8.42%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Sep 2020 – 07 Oct 2020
- Listing date
- 15 Oct 2020
- Face value
- ₹10 per share
- Issue price
- ₹120 per share
- Lot size
- 125 shares
- Total issue size
- ₹61.20 Cr
- Promoter holding
- 99.96% → 74.11% pre-issue → post-issue
- ISIN
- INE060901019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Flat No. 701, Plot No.8-3-940 and 8-3-940/A to E, Tirumala Shah Residency, Yellareddy Guda, Ameerpet, Hyderabad - 500073, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
Application size
Minimum 125 shares per lot, in multiples, at ₹120
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 125 | ₹15,000 |
| Retail (max) | 13 | 1,625 | ₹1,95,000 |
| S-HNI (min) | 14 | 1,750 | ₹2,10,000 |
| S-HNI (max) | 66 | 8,250 | ₹9,90,000 |
| B-HNI (min) | 67 | 8,375 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹120 per share
| Metric | Pre-issue | Post-issue |
|---|
About Likhitha Infrastructure
Likhitha Infrastructure Limited, incorporated on August 06, 1998 as 'Likhitha Constructions Private Limited' and converted to a public limited company in February 2019, is an oil and gas infrastructure service provider in India. The company operates in the oil and gas industry, specifically in pipeline infrastructure and servicing. It provides services including laying pipeline networks along with construction of associated facilities and Operations & Maintenance Services for City Gas Distribution ('CGD') projects. The company depends on a limited number of clients for a significant portion of its revenue and derives business from major client groups in the oil and gas distribution sector.
Company Analysis
from RHPLikhitha Infrastructure Limited is an oil & gas infrastructure service provider focused on laying pipeline networks, constructing associated facilities, and providing Operations & Maintenance Services for City Gas Distribution projects in India.
Likhitha Infrastructure Limited, incorporated on August 06, 1998 as 'Likhitha Constructions Private Limited' and converted to a public limited company in February 2019, is an oil and gas infrastructure service provider in India. The company operates in the oil and gas industry, specifically in pipeline infrastructure and servicing. It provides services including laying pipeline networks along with construction of associated facilities and Operations & Maintenance Services for City Gas Distribution ('CGD') projects. The company depends on a limited number of clients for a significant portion of its revenue and derives business from major client groups in the oil and gas distribution sector.
oil and gas infrastructurepipeline infrastructure and servicingCity Gas Distribution
Objects of the Issue
- Working capital requirements ₹ 4,700.00 Lakhs p.29
- General corporate purpose ₹ 600.00 Lakhs p.29
- To meet issue expenses ₹ 820.00 Lakhs p.29
- Working Capital Requirements Rs. 4,700.00 Lakhs p.88
- General Corporate Purposes Rs. 600.00 Lakhs p.88
- Issue Expenses Rs. 820.00 Lakhs p.88
Issue Structure
- Total Issue
- ₹ 6,120.00 Lakhs
- Fresh Issue
- 51,00,000 Equity Shares
- Price Band
- ₹ 116/- (Floor Price) to ₹ 120/- (Cap Price)
- Lot Size
- 125 Equity Shares (Bid Lot)
- Face Value
- ₹ 10/- per Equity Share
Business Model
The company earns revenue primarily from providing oil and gas infrastructure services including: (1) laying pipeline networks and constructing associated facilities, and (2) providing Operations & Maintenance Services for City Gas Distribution projects. The company operates on a project basis with work orders and long-term framework agreements with clients.
Business Segments
Laying pipeline networks along with construction of associated facilities and providing Operations & Maintenance Services for City Gas Distribution projects
Cross-country pipeline projects and city gas distribution network projects involving laying of oil and gas pipelines with construction of associated facilities including fabrication, erection, installation, testing and commissioning of underground pipelines and associated mechanical, civil, structural, electrical, instrumentation and optical fibre works.
Management services for CGD networks including repairs, modernization, scheduled shutdowns, overhauling and maintenance of existing pipelines. Operations & Maintenance activities involve deploying manpower and tools required for replacement of existing pipelines, emergency repair and maintenance, shifting and compressor hook up of pipelines with associated facilities.
Construction of pipelines, CNG stations, terminal facilities, and related infrastructure projects
Operations and maintenance services for existing pipeline infrastructure and annual maintenance of HDPE pipelines
SWOT Analysis
Strengths
- • Oil & gas infrastructure service provider with pipeline expertise(p.29)
- • Experienced senior management team with industry knowledge(p.44)
- • Significant order book value demonstrating market demand(p.37)
- • Consistent revenue growth over three fiscal years(p.30)
- • Strong net worth and profitability trajectory(p.30)
- • Strong presence and over 20 years of experience in oil and gas pipeline infrastructure across multiple regions(p.129)
- • Strong financial performance with high revenue and profit growth(p.130)
- • Low debt equity ratio and strong balance sheet(p.130)
- • Diverse fleet of sophisticated equipment enabling cost-effective operations(p.131)
- • Long-term relationships with major clients and repeat business(p.131)
- • Highly experienced management team led by promoter with three decades of technical expertise(p.131)
- • Scalable operations with significant growth opportunities in expanding CGD network(p.130)
- • Strong project execution capabilities and large equipment asset base(p.130)
- • Established presence in oil & gas pipeline infrastructure with three decades of management experience(p.156)
- • Diversified project portfolio across multiple infrastructure segments including cross-country pipelines, city gas distribution, and operations & maintenance(p.156)
- • Strong financial performance with consistent revenue growth and profitability(p.214)
- • Experienced senior management team with specialized technical expertise in pipeline engineering and project management(p.171)
- • ISO 9001:2015 certification demonstrating quality management compliance(p.149)
- • Established track record in oil & gas pipeline infrastructure over two decades(p.240)
- • Strong financial performance with improving profitability metrics(p.243)
- • Improving return on net worth demonstrating operational efficiency(p.236)
- • Strong balance sheet with improving debt-equity ratio(p.246)
- • Diversified service portfolio across pipeline infrastructure and O&M services(p.240)
- • Established client base with government and private sector operators(p.240)
Weaknesses
- • Heavy dependence on limited number of major clients(p.36)
- • Limited negotiation power in standardized contract terms(p.36)
- • Manpower intensive business dependent on contract labor availability(p.42)
- • Significant contingent liabilities from bank guarantees(p.38)
- • Limited experience of one promoter in line of business(p.45)
- • Unregistered trademark/logo lacks statutory protection(p.48)
- • High dependence on a few major clients in oil and gas sector(p.131)
- • Concentration of registered office in single location on rental basis(p.139)
- • High concentration of shareholding with promoter holding 97.46% of pre-issue capital(p.174)
- • History of time overruns in project execution(p.152)
- • Group company (Veriedge Technologies) has been loss-making for three consecutive years(p.180)
- • Personal guarantees provided by promoters and directors to secure company facilities(p.161)
- • Significant dependence on retention money receivable as working capital(p.209)
- • Significant dependence on oil & gas distribution companies for majority of business(p.249)
- • Concentration of working capital in trade receivables and advances(p.268)
- • Outstanding contingent liabilities from bank guarantees(p.247)
- • Disputed tax demands pending with authorities(p.255)
Opportunities
- • Favorable government policies and increased oil & gas demand(p.40)
- • Expansion of City Gas Distribution (CGD) network in India(p.29)
- • Operations & Maintenance Services for CGD projects(p.29)
- • Significant expansion of CGD networks across India under government initiatives(p.130)
- • Growing demand for O&M services with better margins(p.132)
- • Expansion of natural gas pipeline infrastructure across India(p.103)
- • Strong growth trajectory of natural gas demand in India(p.102)
- • Government focus on gas infrastructure development and investment targets(p.116)
- • Expansion into operations & maintenance services with growing demand(p.148)
- • Capability to undertake large-scale cross-country pipeline projects with established execution track record(p.148)
- • International project experience with successful Nepal pipeline execution(p.149)
- • Diversification into allied infrastructure services including tank farms and city gas distribution(p.149)
- • Expansion of City Gas Distribution (CGD) network through private sector participation(p.249)
- • Increased qualification enabling participation in larger pipeline projects(p.249)
- • Growing demand for pipeline infrastructure and O&M services(p.243)
- • Potential for market consolidation through acquisition of competitors(p.249)
Threats
- • Project execution delays and cost overruns due to external factors(p.38)
- • Seasonal fluctuations affecting project execution(p.39)
- • Intense competition from larger regional and national companies(p.39)
- • COVID-19 pandemic impact on operations and cash flow(p.51)
- • Labor cost inflation without corresponding price escalation in contracts(p.42)
- • Regulatory and compliance changes in labor and environmental laws(p.42)
- • Dependence on government entity clients and project funding(p.27)
- • Highly competitive environment with multiple players in pipeline infrastructure(p.135)
- • Dependence on timely government approvals and regulatory clearances(p.135)
- • Exposure to project-related risks including delays, cost overruns and technical challenges(p.129)
- • Operating and project execution subject to various environmental and safety regulations(p.135)
- • Cyclical nature of infrastructure and project-based business(p.31)
- • Industry susceptibility to project time and cost overruns affecting margins and profitability(p.152)
- • Regulatory compliance burden across multiple employee benefit and labor laws(p.143)
- • Exposure to fluctuating input costs and material price volatility(p.215)
- • Dependence on government infrastructure spending and project allocation in oil & gas sector(p.149)
- • Highly competitive and fragmented industry with organized and unorganized players(p.249)
- • Competition from larger competitors with superior financial and technical resources(p.249)
- • Exposure to interest rate fluctuations affecting debt obligations(p.247)
- • Vulnerability to inflation impacting project economics(p.247)
- • Business seasonality with execution skewed to second half of financial year(p.249)
- • Regulatory and policy changes affecting the oil and gas sector(p.241)
- • Credit risk from dependence on customer payment performance(p.247)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Srinivasa Rao Gaddipati | Promoter | 97.15% | — |
| Ms. Likhitha Gaddipati | Promoter | 0.31% | — |
| Srinivasa Rao Gaddipati | Promoter | 97.44% | 72.25% |
| Likhitha Gaddipati | Promoter | 0.01% | 0.01% |
| Sri Lakshmi Gaddipati | Promoter Group | 2.50% | 1.85% |
| Mr. Srinivasa Rao Gaddipati | Promoter and Managing Director | 97.44% | 72.25% |
| Ms. Likhitha Gaddipati | Promoter and Non-executive Director | 0.01% | 0.01% |
Leadership
Mr. Sivasankara Parameshwara Kurup Pillai · Chairman
Mr. Srinivasa Rao Gaddipati · Managing Director
Mr. Sudhanshu Shekhar · Chief Executive Officer
Mr. Sambasiva Rao Ketineni · Chief Financial Officer
Mr. Santhosh Kumar Gunemoni · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Likhitha Infrastructure IPO FAQs
What is the lot size of Likhitha Infrastructure IPO?
The minimum lot size of Likhitha Infrastructure IPO is 125 shares. One lot costs ₹15,000 at the cut-off price.
When does Likhitha Infrastructure IPO open and close?
Likhitha Infrastructure IPO opened for subscription on 29 Sep 2020 and closed on 07 Oct 2020.
What is the listing date of Likhitha Infrastructure IPO?
Likhitha Infrastructure IPO listed on 15 Oct 2020.