Likhitha Infrastructure 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. The company has presence (including past operation) in more than 16 states and 2 Union Territories in India. Is has successfully laid over 600 Kms. of Oil and Gas pipelines including steel and Medium-Density Polyethylene (“MDPE”) network in past 5 fiscals.

Promoter Selling Shareholder- The President of India, acting through the Ministry of Defence, GoI.

Likhitha Infrastructure Limited IPO

Wants To Apply Online


Issue Details

Objects of the issue
  • To meet the general working capital requirements ( Rs. 47 Cr.) of the business.
  • To meet general corporate purposes.
  • To meet IPO issue expenditures.
Issue Size Issue Size: Rs.61.2 Crore

Fresh Issue– 5,100,000 Shares

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 117 – Rs. 120
Bid Lot 125 shares
Listing at  


Issue Opens: 29th September 2020 – 1st  October 2020
QIB 50% of Net Issue Offer
NIB 15% of Net Issue Offer
Retail 35% of Net Issue Offer

Financial Performance:



Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoter & Promoter


99.96% 74.11%
Public & Others 0.04% 25.89%


Elite-Empower-App-Promotional-Banner-img1Source: DRHP, EWAL Research


  • Have a strong presence in India and significant experience

  • Client provides the sizable portion of the raw materials which result into low cost of operations, consequently, enables it to have better profit margins.

  • Strong balance sheet, high ROCE, positive operating cash flows.

  • Strong Project execution capabilities

Key Highlights:

  • Between fiscal 2015 and 2020, income from operations increased at a CAGR of 38.96% from Rs. 31.12 crore to Rs. 161.23 crore.

  • RONW (Return on Net worth) in fiscal 2018, 2019 and 2020 was 24.83%, 43.16% and 33.06%, respectively.

  • Have experienced a significant growth in O&M Services business in recent years which grew at a CAGR of 297.51% between fiscal 2017 and fiscal 2020.

  • As of March 31, 2019, long-term debt equity ratio was 0.03:1 while it was 0.01:1 on March 31, 2020.

  • Debtor holding period was 79.71, 36.53 and 31.36 days in the fiscal 2018, 2019 and 2020 respectively.

  • Realization period for debtors has been expected to increase to 60 days for the Financial Years 2020-21 and 2021-22 as per RHP.

Risk Factors:

  • Business of the company is dependent on a few clients and the loss of, or a significant reduction in purchase orders from such clients could adversely affect business and financials of the company

  • Company may not be able to realize the amounts reflected in order book which may materially and adversely affect

  • Face competition in business from other oil and gas infrastructure companies.

  • Company does not have any formal long-term arrangements with its suppliers.


Likhitha Infrastructure is an Oil & Gas pipeline infrastructure service provider in India. It has a strong client base in India including both private and public players such as ONGC, HCG, Indian Oil, GAIL among others. Likhitha Infra is geographically well-diversified and has an efficient business model required for growth. It has a strong balance sheet aided by healthy margins and profitability. India’s Gas pipeline network is expected to expand to around 35,000 kms in the next 5-6 years, based on which the Company is also planning to expand its pipeline laying execution capacity to a range of 250-300 kms per year. At the higher end of the price band of Rs. 120, the stock is be available at a PE multiple of 8.83x on FY20 EPS. There are no listed companies in India which are engaged in the same line of business as of Company. Considering adverse effect of  COVID- 19 on the business of company, we would recommend avoid to this IPO however investment could be made post listing for the long term.


Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more

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