You are here: Home » Companies » News
Business Standard

Likhitha Infrastructure IPO sails through after tweaks to structure

Garners 9.5x subscription; offer was to close Thursday but was extended due to shortfall in bids from QIBs even as retail portion saw strong demand

IPOs | high networth individuals | energy sector

BS Reporter  |  Mumbai 

IPO market
The shares in the high-networth individual (HNI) portion were increased from 15 per cent of the issue to 64 per cent of the issue.

The IPO of Hyderabad-based Likhitha Infrastructure managed to sail through after the issuer made a number of tweaks to the issue structure.

The Rs 61-crore offering garnered 9.5x subscription. The IPO was scheduled to close on Thursday, but was extended owing to the shortfall in bids in the qualified institutional buyer (QIB) segment, even though the retail portion had witnessed strong demand.

Likhitha reduced the IPO price band and also cut the size of the QIB portion from 2.55 million shares to a mere 51,000 shares — just 1 per cent of the overall IPO size of 5.1 million shares.

Shares in the high networth individual (HNI) portion were increased from 15 per cent of the issue earlier to 64 per cent.

ALSO READ: Decoded: Why Sebi wants to shorten trade settlement cycle to a day

The reduced QIB book was subscribed 22x, raking in 1.12 million bids. The HNI book received 1.5x subscription, while the retail portion was subscribed 24x.

Likhitha Infra is an oil and gas infrastructure service provider.

The company provides pipelines for the as well as for projects.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 07 2020. 18:12 IST