Likhitha Infrastructure lists at 8% premium over the issue price

• The Likhitha Infrastructure stocks listed at ₹130.10, is an upside of 8% to the revised IPO price band.
• Within minutes after listing the shares gained over 5% of their value, and the shares were trading at ₹136.60 apiece at 10:10 am.
• The total market cap of Likhitha Infrastructure rose to ₹260.47 crore at 10:10 am.
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It is a lacklustre debut for the ₹61.2 crore IPO of the Hyderabad-headquartered oil and gas pipeline infrastructure service provider Likhitha Infrastructure on the Indian stock-exchanges today. The stock, listed at ₹130.10, is an upside of 8% to the revised IPO price band set at ₹116-₹120 per share.

However, within minutes after listing the shares gained over 5% of their value, and the shares were trading at ₹136.60 apiece at 10:10 am.

The total market cap of Likhitha Infrastructure rose to ₹260.47 crore at 10:10 am. A total traded quantity of 1.57 lakh shares changed hands on BSE, amounting to a turnover of ₹2 crore. The company will deal with the symbol of ‘LIKHITHA’ on the Indian stock exchanges.

Why did it fail to garner investors’ interest?

The investor pessimism for its shares already reflects in the subscription number ahead of the listing. The company had to revise its price band from ₹117-₹120 to ₹116-₹120/share and extend the IPO by three days after receiving a weak response from Qualified Institutional Buyers (QIBs).

The Likhitha Infrastructure IPO was subscribed nearly ten times on the final day of bidding than the whopping 157 times subscription of its other IPO peer Mazagon Dock. According to the stock-exchange data, the issue received bids for 48 million equity shares against an offer size of 5 million equity shares.

And, analysts were already skeptical about the company’s listing after a subdued investor response. “Nothing much was left on the table at the issue price,” said Keshav Lahoti, Associate Equity Analyst, Angel Broking.

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Likhitha Infrastructure trades at 13% grey market premium ahead of listing today