NE BUSINESS BUREAU
AHMEDABAD, SEPT 26
Hyderabad-headquartered Likhitha Infrastructure Limited, an oil and gas pipeline infrastructure service provider, has announced the price band of Rs. 117- Rs. 120 for its initial public offering. The IPO will open on Tuesday, September 29, and close on Thursday, October 01, a release said.
The IPO consists of a fresh issue of up to 51,00,000 Equity Shares representing 25.86% of the post-issue shareholding; expecting to raise a total amount up to Rs. 61.20 crore. The proceeds of the IPO will be utilised by the Company towards its working capital requirements so as to capitalise on the growing demand from the oil and gas sectors, and for general corporate purposes.
The company is led by Srinivasa Rao Gaddipati, a first-generation entrepreneur with around three decades of technical experience and co-promoted by his daughter, Likhitha Gaddipati who has attained a Master’s degree from Illinois Institute of Technology and professional experience in the USA. The company has over two decades of experience in laying of pipeline networks along with construction of associated facilities, as well as providing operations & maintenance services to leading City Gas Distribution (CGD) Companies in India, the release added.
The Company has executed the first Trans-National Cross-Country Pipeline of South-East Asia connecting India to Nepal. Its projects are spread across over 16 states and 2 Union Territories in India and has successfully laid over 600 Kms. of Oil and Gas pipelines, including steel and Medium-Density Polyethylene network in past 5 fiscals. Additionally, the Company has laid approximately 800 kms of Oil and Gas pipelines for on-going projects. The Company has a strong client base consisting of leading gas distribution companies in India including both the private and public players and a strong Order Book (i.e. the unexecuted portion of the much larger total contract value) of approximately Rs. 663 crore as on July 31, 2020.
For the Financial Year 2019-20, the Company clocked a Total Revenue of Rs. 162.79 crores, an EBIDTA of Rs. 31.22 crores, Profit After Tax of Rs.19.87 crores.
Unistone Capital Private Limited is the Book Running Lead Manager to the issue.
