Oil & Gas Pipeline Infrastructure Service Provider Likhita Infrastructure will launch its initial public offering (IPO) on September 29th. The price band for this issue is set at Rs. 117-120 per share.
The latest public offering includes 51 lakh equity shares. While the promoters’ stake reduced to 74.11 percent after the IPO.
The company plans to raise Rs. 61.02 crores through its first public issue, which closes on October 1st.
The funds raised through the IPO will be used by the Company for working capital needs.
Promoted by Srinivasa Rao Gaddipati and Likhita Gaddipati, Likhita engaged in providing infrastructure, oil and gas pipelines, urban gas distribution projects, cross country pipeline projects, and operations and maintenance services. It is the company that implemented the first trans-national cross country hydrocarbon pipeline project between India and Nepal.
Whereas the company has a strong client base in India, including private and public players ONGC, HCG, Indian Oil, and GAIL.
During the financial year, Likhita Infrastructure’s revenue grew by 15.8 percent to Rs. 162.79 crores and 11.3 percent to Rs. 1,988 crores in the year-ago period. Revenue before interest, tax, depreciation, and amortization (EBITDA) rose 4.2 percent to Rs. 31.22 crores for the year ended March 2020, while margin FY19 declined to 19.18 percent from 21.33 percent.
The company reported 22 percent CAGR from operations and 41 percent profit during FY18-FY20. As of July 2020, its order book is around Rs. 950 crores.
The company could benefit from government investment in gas infrastructure.
India aims to invest $100 billion in gas infrastructure by 2022 and add another 228 cities to its Gas Distribution (CGD) network. These include RLNG terminals, pipeline projects, gas grid completion, and the establishment of CGD networks in more cities.
Book Running Lead Manager for Unistone Capital Issue.