Likhitha Infrastructure Ltd, a Hyderabad-headquartered oil and gas pipeline infrastructure service provider, has announced a price band of ₹117-120 for its initial public offering.

The IPO will open on September 29 and close on October 1, 2020.

It consists of a fresh issue of up to 51 lakh equity shares, representing 25.86 per cent of the post issue shareholding, expecting to raise a total amount of up to ₹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 sector, and for general corporate purposes.

The company, founded by Srinivasa Rao Gaddipati, has been laying pipeline networks over past two decades, along with construction of associated facilities, including operations and maintenance services to leading city gas distribution (CGD) companies in India.

The company executed the first trans-national cross-country pipeline of South-East Asia connecting India to Nepal. It projects are spread across 16 States and two Union Territories.

The Company has an order book of ₹663 crore as on July 31, 2020.

For the Financial Year 2019-20, the company clocked a total revenue of ₹162.79 crore, an EBITDA of ₹31.22 crore, profit after tax of ₹19.87 crore, and operating cash flow of ₹19.15 crore.

The government is targeting $100 billion worth of investment in gas infrastructure by 2022 and aims to add another 228 cities to the city gas distribution (CGD) network.

Unistone Capital Private Ltd is the Book Running Lead Manager to the issue.

The minimum bid lot is 125 equity shares and in multiples of 125 equity shares thereafter. The shares will be listed on BSE and NSE.

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