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The Orange Economy A Put Where Development Drives Wealth

  In a time when mechanization and machine learning are changing conventional businesses, a flourishing portion of the worldwide economy is illustrating that human resourcefulness is still a important asset. The "Orange Economy"—also known as the imaginative economy or social industries—has played a major part in protecting culture, making occupations, and developing the economy. But what is this energetic thought, and why is it picking up conspicuousness in discussions almost worldwide development?   What is the Orange Economy?   The express "Orange Economy" was at first utilized by previous Colombian President Iván Duque Márquez and previous Culture Serve Felipe Buitrago. Concurring to the Inter-American Improvement Bank, it is "the organize of interconnected forms through which thoughts are turned into social merchandise and administrations whose esteem is decided by mental property."   Orange was particularly picked since it has been related with devel...
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Likhitha Infrastructure Ltd | Expert advice, invest in IPO or stay away

Likhitha Infrastructure Ltd | Expert advice, invest in IPO or stay away

 


The IPO of Hyderabad-based Oil and Gas Pipeline Infrastructure Service Provider Company Likhita Infrastructure Limited has also opened from September 29, 2020. Investments can be made in this till October 7, 2020. The company aims to raise Rs 61.20 crore through an IPO. Uniston Capital Private Limited is the book running lead manager for the issue. The price band per share for the IPO has been fixed at Rs 116 to 120. There will be a fresh issue of up to 51,00,000 equity shares in this IPO, which is 25.86 per cent of the shareholding after the issue.

 

The company was founded by Srinivasa Rao Gaddipati and his daughter Likhita Gaddipati is a co-promoter. The company has over two decades of experience in laying pipeline networks and building-related facilities and providing operation and maintenance services to city gas distribution companies. The company's projects are spread across 16 states and 2 union territories of Union of India. As of July 31, 2020, the company's order book was 663 crore rupees. The company had a profit of Rs 19.87 crore in the fiscal year 2019-20.

 

Experts are of the opinion that it is a courageous job to invest money in small companies. Earlier people were interested in investing in small companies. Now the bigger IPO comes, the bigger the response is. Funds and FIIs have become big players of IPOs. It is courageous to bring an IPO of 60 crores in such a market. Especially the IPO bringing infra sector which is not currently in trend. No one is interested in infra. Despite this, the company has dared to bring an IPO. Lead managers also do not have as strong a lead role.

 

According to Anil Singhvi, managing editor of Zee Business, the company is good on paper. However, it is only when the company is listed or talking to the management that the company gets an idea. But, the balance sheet is visible at the moment. Much better than that. The order book is very strong. Cash flow is improving. Valuations are not very expensive. These are some good things. But, the problem is that when everything is good, then why only bring IPO of working capital. It should not be needed. Is a very small company. There is a market cap of only 237 crores. It is very difficult for a company with such a small market cap to guess what will happen to the IPO.

 

According to Anil Singhvi, the company is good on paper. However, it is only when the company is listed or talking to the management that the company gets an idea. But, the balance sheet is visible at the moment. Much better than that. The order book is very strong. Cash flow is improving. Valuations are not very expensive. These are some good things. But, the problem is that when everything is good, then why only bring IPO of working capital. It should not have been needed. Likhitha Infrastructure Ltd is a very small company. There is a market cap of only 237 crores. It is very difficult for a company with such a small market cap to guess what will happen to the IPO.

 

According to Anil Singhvi, the promoters are good, the gas and oil pipeline works. Business is good. But, it is very difficult to give your opinion on such a small company what will happen after listing. The purchase of funds will not come. So whatever has to happen has to be in the middle of retail investors. Those who will invest money in IPO keep in mind that anything can happen. If you want to invest money just by looking at the balance sheet, then you can take a chance. Only those who take more risk should invest. If you want to invest money after seeing the size of the company, then you can leave. There is a neutral view, only those who can take the risk, look at the balance sheet and invest that money. This will be your call completely.

 

Source: Zee Business


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