Likhitha Infrastructure Closes 14% Higher Than IPO Price On Listing Day
Bear and a bull toy figurines sit beside a bell at the Frankfurt Stock Exchange in Frankfurt, Germany. (Photographer: Alex Kraus/Bloomberg)

Likhitha Infrastructure Closes 14% Higher Than IPO Price On Listing Day

Shares of Likhitha Infrastructure, which had extended its initial public offering and lowered price band, gained on its debut on the stock exchanges.

The oil and gas pipeline infrastructure service provider's stock listed at Rs 130, an 8% premium to its issue price of Rs 120 apiece. Shares then rose further to close at Rs 136.6 apiece—13.83% higher.

That compares with a 24-115% premium on listing by previous debutantes such as CAMS Ltd., Route Mobile Ltd., Happiest Minds Technologies Ltd., Chemcon Specialty Chemicals Ltd. and Mazagon Dock Shipbuilders Ltd. Angel Broking Ltd. and UTI Asset Management Co., however, debuted at a discount of 10-11%.

Likhitha Infrastructure, promoted by Srinivasa Rao Gaddipati and Likhitha Gaddipati, had executed the first trans-national cross-country pipeline of Southeast Asia, connecting India to Nepal. It had extended its IPO to Oct. 7 and lowered its price band to Rs 116-120 apiece from Rs 117-120. That was done to accommodate qualified institutional buyers who could not place their bids due to technical issues.

As of the first three days of the IPO, the issue subscribed more than 8.4 times. While the QIB portion subscribed 45%, non-institutional and retail investors bid 5.39 times and 21.13 times, respectively, for the shares reserved for them.

The company, in its red herring prospectus, had said it plans to use the proceeds of the share sale toward working capital requirements to capitalise on the growing demand from the oil and gas sector, and for general corporate purposes.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.