Likhitha Infrastructure listing: Debuts on bourses today; may see a flat listing

The shares of the oil and gas pipeline infrastructure service providing company, Likhitha Infrastructure will debut on the stock markets today, i.e. October 15, 2020, with the final issue price fixed at Rs 120 per share.

The company may see a muted/ flat listing on the backdrop of the tepid response from the investors initially.

Likhitha Infrastructure's Rs 61 crore IPO was open for subscription between September 29, 2020, and October 7, 2020. The IPO was initially scheduled to close on October 1, 2020, but was extended till October 7, 2020, from qualified institutional buyers (QIBs) on the final day of bidding. It also revised the price band to Rs 116-120 per share from Rs 117-120 earlier. The issue was subscribed 9.51 times. It had the smallest initial public offering of Rs 61 crore and will be the 11th company to get listed this year.

The IPO proceeds will be used for meeting working capital requirements and general corporate purposes.

Established in 1998 Likhitha Infrastructure is an oil & gas pipeline infrastructure service provider. It has over two decades of experience in laying pipeline networks and providing operations and maintenance services for city gas distribution projects in India. Srinivasa Rao Gaddipati and Likhitha Gaddipati are the promoters of Likhitha Infrastructure.

The company has a market cap is just Rs 237 crore at the higher price and out of that, around 74 per cent will be held by the promoter.