Likhitha Infra IPO subscribed 9.40 times
Published on Oct 05, 2020 17:38
The initial public offer (IPO) of Likhitha Infrastructure received bids for 4.79 crore shares on Monday, 5 October 2020, as against 51 lakh shares on offer, as per the National Stock Exchange of India (NSE) website data at 17:00 IST. The issue was subscribed 9.40 times.
The issue opened for bidding on Tuesday, 29 September 2020. It was set to close on 1 October 2020. However, due to weak participation from the qualified institutional buyers (QIBs), the IPO was extended till 7 October 2020. The company also revised its price band to Rs 116-120 from Rs 117-120 set earlier.
As on 1 October 2020, the portion allotted to the QIBs was subscribed only 45%. The response from retail investors was robust, and the portion reserved for them was subscribed 21.13 times. The non-institutional investors category was subscribed 5.39 times.
The public issue comprised a fresh issue of 51 lakh equity shares, representing 25.86% of post issue paid up equity. The company proposes to utilize the IPO proceeds towards meeting the working capital requirements (Rs 47 crore), general corporate purposes and issue expenses.
The company recorded sales of Rs 161.24 crore and profit after tax of Rs 19.88 crore in the year ended on 31 March 2020.
Likhitha Infrastructure (LIL) is an oil & gas pipeline infrastructure service provider in India. Its operations include three principal business lines: (i) cross country pipelines and associated facilities; (ii) city gas distribution including CNG stations; and (iii) operation & maintenance of CNG/PNG services.
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