Likhitha Infrastructure Grey market Premium is trading approx. 15% of the issue price. As the IPO got Subscribed 8 Times on Day 3 at 3Pm. Then there is sludge in its Grey Market Premium. Likhitha Infra Grey market is turning choosy as retail investors are showing interest as it got subscribed 18 times.
Likhitha Infrastructure IPO Allotment Status Online:
Likhitha Infrastructure Ipo allotment status check will be made available on the 7th of October 2020. We will update when you can check and how you can check your allotment status for likhitha infra IPO.
Also Read: How to Check Mazagon Dock IPO Allotment Status Online
IPO Likhitha Infrastructure Grey market Price and Listing Gains:
Likhitha infra grey market is now doing well. and before that have a look at whats's your chances in getting the allotment of likhitha infra IPO allotment. you can see its financials and future growth prospectus as if you are looking to hold this company for the long term.
If you are applied this IPO for listing gains then you should definitely wait for your IPO allotment status. Now we have discussed in detail. what are the chances for getting the shares listed on premium in this very article? read it fully.
Likhitha Infra Ipo Details:
| Issue Opening Date: | Sep 29, 2020 – Oct 1, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 5,100,000 Equity Shares of Rs.10 |
| Fresh Issue | 5,100,000 Equity Shares of Rs.10 |
| Face Value | Rs.10 per equity share |
| IPO Price | Rs.117 to ₹120 per equity share |
| Market Lot | 125 Equity Shares |
| Min Order Quantity | 125 Equity Shares |
| Listing At | BSE, NSE |
IPO Lot Size of Likitha Infrastructure Grey Market Premium
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Min | 1 | 125 | Rs.15,000 |
| Max | 13 | 1625 | Rs.195,000 |
Hey everyone warm welcome to another article in IPO’s. Welcome to everyone, today we will be doing an analysis on one more IPO. we together will do it most probably. I would have changed your outlook on analyzing an IPO.
Let us begin now with the analysis of Likhita Infra IPO. I have already put up a lot of articles until now. I have put up articles on UTI, Mazagaon IPO, and Nifty and Reliance analysis. Let’s look at Likhita Infra IPO means such a small IPO if it gets oversubscribed then how many times it will be oversubscribed is what I am still guessing IPO is for 61 crores. I am like Indians pay this amount in brokerage.
Also Read - 5 Parameters you Should Know Before you can Buy or Sell Shares
So let’s look at what the company has with it. Let me first tell you the Index- I will be covering the company-
Index Topics Covering for today
- Management,
- business model,
- Promoter holdings
- what will be the future business model
- Where do the company operate
- if it’s a fresh issue or not?
- how much offloading are promoters doing.
- also, we will be discussing the financials client base and location
- then we will be discussing on listing gains and returns
- finally, how much oversubscription will happen
This company is of 1998 which is just a 22-year-old company. Now, this is the only company they build pipelines and then there is no other company In India. This pipeline is still in progress since till now we were getting a Gas cylinder at home. gas pipeline construction is still in progress, people are getting aware of it which means that if we talk about further growth then the chances of business growth are high next.
The company has business in different locations now the most important part. Who comes in a client base that means that there are good projects from the government. this means that the client base is strong and the future business model is strong this is the most happening thing which I felt.
Likitha Infra IPO 2020 Financial Analysis
Now let’s come on financials first, The company had around this much which is rupees in lakh shown here this is not rupees in million but this is rupees in lakhs so there were assets of around 67 crores. that is why they are coming up with a small IPO which then grew to 84 crores then grew to 100 crores. which means that most probably every year 15-17% growth is seen in assets that means that the company is settling its pipeline.
It has been settling it on a good level, That’s why there is growth in assets. If we talk about revenue then, here there was about 88 crore of revenue. which after growth has grown to 140 crores and then further to 162 crores. Now the thing to focus here is that in 2 years revenue has grown into almost double this means that the company has a strong order book, money is also flowing in.
Likhitha Infra IPO Revenue Analysis
Nowhere there is money getting blocked now if we look at both assets and revenue figures than. It is seen that the company has not been able to utilize its assets completely company has assets but the multifield analysis is not happening to talk about PAT. Then, after 88 crores of Sales, they got 7 crores of profit somewhat around less than 10% approximately approx. 9% on 140 crores of sales, There were 17 crores of profit which went up to 10% later on, 162 crores of sales profit were 19 crores which are again above 10% which means that the company has decreased its expenses.
Likhitha Infrastructure Grey Market premium is buzzing in the market on the last day of subscription.
What is the Business Model Of Likhitha Infra IPO:
Try understanding the business model properly here that the company has put up the pipeline and then its fixed asset. Same as how JIO has done with its JIO Fibre this is the business model. here now if we calculate on the basis of financials then the return on net worth is about 15%. then it is coming up to 35% which is a very good ratio 29th Sept the IPO is launching.
On the same day, we have UTI and Mazagaon dock as a well fresh issue around 51 lakh share is going to be launched by them the best part is that this complete 51 lakh is a fresh issue that means that here there is no offloading all the money will be going to the company. 10rs is the face value 120rs will be cut off-price and 125 shares will the market lot and here minimum one lot is coming down to 15000rs.
According to me on 12th Oct, most of the traders will be seating in front of the TV why because UTI, Mazagaon, and Likhita Infra is being launched in the market coming down. the promoter has almost 100% holding 0.4% maybe with HNI or QIB may be with private. also after the IPO launching also after IPO also there will 75% with the promoters because this is a rule this we saw in DMart’s case as well.
Nowhere promoter holding, business model, and financials are satisfying us now the small thing here is which is this 61 crore of IPO. because of which the chances of getting the allotment narrows down now because of this small IPO, QIB feels dejected. since it’s a small IPO that’s why HNI and retail category may be interested in this because the equity base is small.
How Do I Subscribe to Likhitha Infrastructure IPO
Likhitha Infrastructure Ipo got subscribed 10 times on day 3. Hence Likhitha infrastructure grey market saw a sludge in its price and investors are keen to subscribe to this IPO and we can see the final subscribed at 5Pm on day 3 Oct 1.
So there chances that in ahead of time the demand will increase but supply is limited which is only 51 lakh shares this is the criteria here. Listing Gains for Likhitha Infrastructure Ipo we can expect up to 10%.
Listing Gains for Likhitha Infra Ipo:
Now if we talk about oversubscription and listing gains. because QIB is less interested here obviously, this is just a prediction. now I feel that the oversubscription may go only up to 15 times and QIB is not interested. so the number will be smaller 15 times to 47 times 47 times. I have considered on the upper band only during the 3rd day, we can see an oversubscription of 15 to 47 times this will only come to know after 1st Oct after 2pm only.
Now if we talk about listing gains so here the company’s PE ratio and EPS are not that great. so here there is not much left for listing gains and if there was another price band which would be 100rs, 105 Rs. then there was hope we can expect a listing gain of almost around 8-10 Rs per share.
Price Band and Face per Share:
If I talk of 10rs per share then you get around 8rs per share then from 8rs per share to you can get up to 26% of the gain. 8-26% is what we can expect I won’t suggest for the long-term if you guys are thinking to play for listing gains. then you can but the chances of allotment are less. we have discussed on oversubscription if you have idle money in savings. then I would suggest going for it if you don’t have money then I would suggest not apply money is there then apply for 8-26% gains 15-40 times could be oversubscription.
Likhitha Infrastructure grey market Premium is doing roller-coster as there are a drop and sludge in its prices from day one. The grey market premium was trading 5% before the IPO came for a subscription.
