Likhitha Infra IPO fully subscribed on Day 1

Mumbai: Likhita Infrastructure’s Rs 61.20 crore IPO sailed through on day 1 of the bidding process.
According to the data from NSE, the issue was subscribed 1.01 times. It received bids for 51,35,500 shares, compared with the issue size of 51,00,000 shares.

The IPO by the Hyderabad-headquartered oil and gas pipeline infrastructure service provider has a price band of Rs 117-120.


Investors can subscribe to the IPO by betting for a lot of 125 shares or in multiples thereof. One will have to shell out at least Rs 14,625 to bid for the issue.

The IPO consists of a fresh issue of up to 51,00,000 equity shares representing 25.86 per cent of the post-issue shareholding.

The company expects to raise a total amount of up to Rs 61.20 crore. Unistone Capital is the book running lead manager to the issue.

According to Choice Broking, at the higher price band of Rs 120 per share, Likhitha is demanding a P/E valuation of 11.9 times, while on FY23 earnings the demanded P/E multiple comes out to be 9.1 times.

"We feel the demanded valuation is stretched, secondly many strong established companies are available at lower valuations for the investors and lastly, being a labour oriented business operations, the company is highly susceptible to the labour laws. Thus, considering the above observations and the small issue size, we assign an “AVOID” rating for the issue," it said.

The company’s share will be listed in “T” group with a 5 per cent circuit limit, thereby restricting the speculative bet in the share price movement, it noted.