Likhitha Infra soars 22% in two days as Ashish Kacholia buys 2% stake

The company has fixed Friday, December 02, as the record date for ascertaining the eligibility of shareholders entitled for split/subdivision of shares

Shares of Likhitha Infrastructure hit a new high of Rs 494.30 as they rallied 5 per cent on the National Stock Exchange (NSE) in Thursday's intra-day trade amid heavy volumes. In the past two trading days, the stock of the civil construction company has soared 22 per cent after ace investor Ashish Kacholia bought 2 per cent stake in the company through open market.

On Wednesday, November 30, Ashish Kacholia purchased 397,000 equity shares, representing 2.01 per cent stake, in Likhitha Infrastructure at a price of Rs 386 per share on the NSE via block deal, exchange data shows. The name of the seller, however, could not be ascertained.

In the past six months, the stock has appreciated nearly 70 per cent as compared to 14.5 per cent rise in the Nifty 50.

To enhance the liquidity in the capital market, widen the shareholder base, and make the shares more affordable to small investors, the board of directors of the company at their meeting held on September 26, approved stock split in a ratio of 1:1.

Likhitha Infrastructure has fixed Friday, December 02, 2022, as the record date for ascertaining the eligibility of shareholders entitled for corporate action of split/subdivision of 1 equity share having face value of Rs 10 each into 2 equity shares having face value of Rs 5 each. The stock will turn ex-date for stock split tomorrow.

Likhitha Infrastructure is an oil & gas pipeline infrastructure service provider, majorly focused on laying pipeline networks along with the construction of associated facilities and providing operations & maintenance services to the oil and gas companies in India.

The oil and gas sector is among the eight core industries in India, and plays a major role in influencing decisionmaking for all the other important sections of the economy. India’s economic growth is closely related to its energy demand; therefore, the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment.

Natural gas has been gaining traction as a key alternative and an ideal fuel to support the energy shift in favor of cleaner and greener energy sources.

"Likhitha Infrastructure is planning to expand the capacity to execute work of laying Oil & Gas pipelines above 400 kilometers per year. In view of the PNGRB (Petroleum and Natural Gas Regulatory Board) expansion plan, the Company is gearing up to increase its presence across the country by the end of 2022. The Company is planning to increase O&M services with the expertise gained over the years as this would be the key aspect in the future as the Government is currently focusing to create CGD facilities in over 70 per cent of the cities in coming years," the company said in its FY22 annual report.