IPO Details
Here is snap shot of the IPO
- Issue Opening – 29th Sep 2020
- Issue Closing – 1st Oct 2020
- Revised Issue Closing – 10th Oct 2020
- Price Band – INR 117 to INR 120
- Lot Size – 125
- Minimum Investment Amount – INR 15,000
Note the IPO subscription end date was revised as QIB portion was not subscribed fully. So number of shared allocated to QIB was lessened. Please read the subscription data for more details on this topic.
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Business Overview
Likhitha Infrastructure belongs to Infrastructure business but with a difference. It deals with specialized Infrastructure projects of Oil and Gas pipeline laying. There is no listed Company in this space currently. This is the first Company to get listed in this space.
Below are different services offered by the Company. These are three major business segments of the Company.
- Cross Country Pipelines and associated facilities
- City Gas Distribution including CNG Stations
- Operation & Maintenance of CNG/PNG services
It is involved in erection, testing and commissioning of Pipelines falling in one of above business categories. It is first execution company from India to execute the first ever Trans-National Hydrocarbon (Multi-product) Pipeline Project between India and Nepal.
The Company is present in all over India with exception of North East India, Maharastra, Rajasthan, Jammu and Kashmir and Chhatisgarh. As of now the Company has completed
- Completed 7 projects for Avantika Gas Limited
- Completed 8 projects for GAIL India Limited
- Completed 5 projects for Indraprastha Gas Limited
- Completed 1 project for Indian Oil Adani Gas Pvt Ltd
- Completed 1 project for Oil and Natural Gas Limited
As of now the Company has below Ongoing projects
- Ongoing 1 projects for Bharat Petroleum Corporation Limited
- Ongoing 7 projects for GAIL India Limited
- Ongoing 1 projects for Hindustan Petroleum Corporation Limited
- Ongoing 8 projects for Indraprastha Gas Limited
- Ongoing 5 projects for Indian Oil Adani Gas Pvt Ltd
- Ongoing 6 projects for Indian Oil Corporation Limited
- Ongoing 1 projects for Oil and Natural Gas Corporation Limited
- Ongoing 2 projects for Torrent Gas Private Limited
Financial Snapshot
Below is the Financial Snapshot of the Company.
- Total Revenue 161.24
- Net Profit 19.88
- EBITDA Margin % 18.40%
IPO Subscription Status
I will update this section on the last day of the subscription as per the trading plan mentioned in the Make Money with IPO Analysis article. This section will be updated at that time.
The QIB portion was not subscribed fully (as shown in QIB below). So Company has extended subscription window till 7th Oct as of now. The shares offered to QIB is lessened so subscription data for QIB (as shown in Revised QIB) is increased.
So before taking any call in the IPO application one should note that subscription data shown under QIB revised is after the shared offered to QIB is decreased. The same has been moved to NII quota it seems. So you should take original subscription data along with revised data to conclude.
- QIB – 0.45 times
- Revised QIB – 22.48 times
- NII – 5.39 times
- Revised NII – 1.26 times
- RII – 20.47 times
- Revised RII – 21.28 times
- Total Subscription is 08.20 times
- Revised Total subscription is 08.48 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- RII is (People bidding for less than 2 lakhs)
- Employee and Others are Reserved Quota Investors.
My Opinion
Likhitha Infrastructure is a Company operating in unique business. It has complete projects from top Customers in the space. It has also good number of existing projects going on from top customers of India. So there is revenue visibility for the Company of near future.
It is Business to Business Company with projects coming from Companies like GAIL, Indian Oil, BPCL and HPCL. These are top names from this space. Geographically it is spanned in most parts of India so there is good scope of grabbing future projects.
It will be interesting to see how well Investors response to the Infrastructure Company in Corona times.