About the Company:
Likhitha Infrastructure Ltd is an Oil & Gas pipeline infrastructure service provider in India, focused on laying pipeline networks along with construction of associated facilities; and providing Operations & Maintenance services to the City Gas Distribution (“CGD”) Companies in India.
Company’s client base comprises of established players in the Oil and Gas Industry, both in public and private sector.
Company has been engaged in the same line of business for over two decades and Over the years, have diversified the gamut of services being provided by our Company from Cross-Country Pipeline Projects (CCP); City Gas Distribution (CGD) Projects to providing Operation & Maintenance (O&M) Services to CGD Companies.
Company has presence (including past operation) in more than 16 states and 2 Union Territories in India.
Company has successfully laid over 600 Kms. of Oil and Gas pipelines including steel and Medium-Density Polyethylene (“MDPE”) network in past 5 fiscals.Additionally, Company has laid approximately 800 kms of Oil and Gas pipelines for on-going projects.
Company’s Business:
Pipeline Infrastructure Business:
Company’s pipeline infrastructure business comprises of undertaking projects for laying of pipelines in Cross-Country Pipeline projects as well as for setting up City Gas Distribution network and construction of associated facilities.
Cross-Country Pipeline projects entail laying of oil and gas pipelines over long distances across the country. It includes oil and gas pipeline laying along with construction of associated facilities which comprises of providing fabrication, erection, installation, testing and commissioning of the underground pipelines.
Operation & Maintenance Services Business:
Company also provides Operations & Maintenance Services to CGD Companies. Our Operation and Maintenance (O&M) Services business includes management services for CGD networks, other repairs, modernization, scheduled shutdowns, as well as overhauling and maintenance of existing pipelines.
Operation & Maintenance activities involves deploying manpower and tools required for replacement of existing pipelines, emergency repair and maintenance, shifting and compressor hook up of pipelines with associated facilities.
Key Achievement:
Likhitha Infrastructure is proud to have executed 10.75” OD x 69 Kms Petroleum Product Pipeline for the first ever Trans-National Cross-Country Pipeline of South-East Asia connecting India to Nepal, in the Year 2019, for supply of petroleum products.
Company’s Order Book:
Likhitha Infrastructure Ltd total Order Book as of July 31, 2020 was approximately Rs.662.58 crores. The following table sets out forth operation-wise summary of our Order Book as of July 31, 2020:
Management Team:
- Mr. Srinivasa Rao Gaddipati (Designation: Managing Director)
- Ms. Likhitha Gaddipati (Designation: Non-Executive Director)
Objectives of the Issue:
- Meet the Working Capital Requirements.
- Meet General Corporate Purposes.
- Meet Issue Expenses.
Peer Group Comparison:
We believe that there are no listed peers engaged exclusively in the segment which we operate. Accordingly, it is not possible to provide an industry comparison in relation to our Company.
Positives for the Company:
Strong Presence in India and Significant Experience:
- Company is one of the well-established oil & gas pipeline infrastructure companies in India with diversified operations spread across various Geographical regions such as Karnataka, Delhi-NCR, West Bengal, Gujarat, Goa, Andhra Pradesh, Kerala, Tamil Nadu, Telangana, Madhya Pradesh, Jharkhand, Bihar, Chandigarh, Haryana, and Uttar Pradesh.
Over 2 decades of Experience:
- Having over 20 years of experience in oil and gas pipeline infrastructure, Likhitha Infrastructure Ltd is one of the few oil and gas pipeline infrastructure companies, having good track record of timely delivery of supply chain in all the business areas.
Long term relationship with Clients and repeat Business:
- Company enjoys a good reputation in our field and have received repeat orders from several of our prominent Clients, despite the increase in competition.
- Company’s Clients include major Oil and Gas Companies, spread across the country and we have been associated with some of them on long term basis.
Further growth in O&M services offerings:
- Company expects significant increase in pipeline projects in India and the aging of existing pipeline projects should result in a significant increase in demand for our O&M Services business, which include AMC services, repairs and modernisation, scheduled shutdowns and overhauling of existing pipelines projects.
- Further, the level of competition for O&M contracts is relatively lower than that in case of Pipeline Infrastructure Projects due to technical requirements.
Favourable Government Policies:
- Initially, in City Gas Distribution market, around 30 cities were notified by PNGRB as CGD Geographical Areas (GAs) for laying CGD network in such areas by the authorized entities.
- As per the recent Government policies, PNGRB has increased the number of Geographical Areas (GAs) to 228 comprising of 402 districts spread over 27 States and Union Territories, covering 70% of Indian population and 53% of its area.
- The recent Government initiatives have provided lucrative opportunities for work execution company such as Likhitha Infrastructure, who is already having a good presence in City Gas Distribution Projects along with construction of CNG Stations.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 |
|---|---|---|---|
| Revenue | 88.60 | 140.54 | 162.79 |
| Net Profit | 7.16 | 17.85 | 19.87 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 29th September 2020 |
| Issue Closes on:. | 7th October 2020 |
| Issue Price | Rs.116 – 120 |
| Face Value | Rs.10 |
| Minimum Lot | 125 Shares |
| Minimum Investment | Rs.15,000 |
| Issue Constitutes | 25.85% |
| Issue Size | Rs.61.2 cr ($8.3 million) |
| Market Cap | Rs.236.7 cr ($32 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 51,00,000 |
| Equity Shares Prior to the Issue | 1,46,25,000 |
| Equity Shares after the issue | 1,97,25,000 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th October 2020 |
| Initiation of Refunds | on or Before 13th October 2020 |
| Credit of Equity Shares: | on or Before 14th October 2020 |
| Listing Date: | on or Before 15th October 2020 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 5:00 PM) | Shares Offered | 29th Sept | 30th Sept | 1st Oct |
|---|---|---|---|---|
| QIB | 51,000 | 0.02 | 0.03 | 22.48 |
| NII | 32,64000 | 0.85 | 3.20 | 1.26 |
| Retail | 17,85,000 | 2.49 | 7.47 | 21.13 |
| Employee | —– | — | —- | —- |
| TOTAL | 51,00,000 | 1.01 | 3.11 | 8.43 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 13.59 | 8.83 | 33.06% | 47.83 |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/AllotmentBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Likhitha Infrastructure Ltd Flat No. 701, Plot No.8-3-940 and 8-3-940/A to E, Tirumala Shah Residency, Yellareddy Guda, Ameerpet, Hyderabad-500073, Telangana, India. Telephone: 040-2375 2657 Email id: cs@likhitha.in Website: www.likhitha.co.in |
| IPO Registrar Info: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED 1st Floor, Bharat Tin Works Building Opp. Vasant Oasis, Makwana Road, Marol, Andheri (East), Mumbai 400059, India. Telephone: +91 22 6263 8200 Facsimile: +91 22 6263 8280 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| UNISTONE CAPITAL PRIVATE LIMITED 12, Floor no. 02, Shashank CHS Ltd, Manmala Tank Road, Near Starcity Cinema Mahim, Mumbai 400 016, India. Telephone: +91 9322997964 Email: mb@unistonecapital.com Website: www.unistonecapital.com |
