Likhitha Infrastructure to list today — grey market premium suggest an upside of 13%

• Likhitha Infrastructure shares are now hovering at a premium of around ₹5-10 in the grey market today.
• The ₹61.2 crore IPO of Likhitha Infrastructure was subscribed nearly 10 times on the final day of bidding.
• According to Angel Broking, the company may not see a great listing tomorrow “as nothing much was left on the table at the issue price.”
• Check out the latest news and updates on Business Insider.

The shares of Hyderabad-headquartered oil and gas pipeline infrastructure service provider Likhitha Infrastructure will hit the bourses today. This will be the 11th company to list this year.

The company received a tepid response from investors during its ₹61.2 crore IPO. The shares are now hovering at a premium of around ₹5-10 in the grey market— which is an upside of 13% over the revised issue price band.

Grey market premium is the measure of the extra amount that the market is ready to pay for a newly listed company’s shares. However, it is not an official measure of the market premium. But it is a fair indicator of demand for the shares in the market.

Given the turbulence in Indian stock markets over the past few weeks, the grey market premium (GMP) of all companies that launched an IPO recently took a massive hit.

Likhitha Infrastructure: Analysts expect a subdued debut

Given the tepid interest that IPO garnered, analysts are not too excited about listing prospects. According to Angel Broking, the company may not see a great listing tomorrow “as nothing much was left on the table at the issue price.”

“Considering the small size of free float available in the market, we advise investors to stay away from this stock. There are better options available in the market for investment in the infrastructure sector with no issue with respect to the traded value in the exchanges." said Keshav Lahoti Associate Equity Analyst, Angel Broking.

Tepid response for Likhitha Infrastructure IPO

There wasn’t a great demand in the market for Likhitha’s shares— compared to its other IPO peer Mazagon Dock, which saw a staggering 157 times subscription.

The ₹61.2 crore IPO of Likhitha Infrastructure was subscribed nearly 10 times on the final day of bidding. This after the IPO was extended by three days on the back of weak response from Qualified Institutional Buyers (QIBs). Even the price band was revised from ₹117-₹120 to ₹116-₹120 per share

According to the stock-exchange data, the issue received bids for 48 million equity shares against an offer size of 5 million equity shares.


SEE ALSO: Likhitha Infrastructure IPO allotment status to be announced — here’s how to check share allotment status

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