Likhitha Infrastructure will raise ₹60 crore by issuing convertible warrants at ₹240 each. The company also appointed two new Additional Executive Directors, signalling a focus on growth and operational enhancement.
Likhitha Infrastructure Plans ₹60 Crore Capital Infusion via Warrants, Strengthens Board
Likhitha Infrastructure Ltd. is set to raise ₹60 crore through a preferential issue of up to 25,00,000 convertible warrants at ₹240 per warrant. The company also announced the appointment of two new Additional Executive Directors, Mrs. Lohitha Gaddipati and Mr. Chandra Dheerajram.
Reader Takeaway: Capital infusion via warrants and new executive appointments signal growth focus but raise governance questions.
What just happened
The Board of Likhitha Infrastructure has approved issuing 25,00,000 convertible warrants, each with an issue price of ₹240. This preferential issue is expected to aggregate ₹60 crore. The warrants carry a face value of ₹5 and have a tenure of 18 months. A 25% upfront payment is required upon subscription, with the remaining 75% due upon warrant exercise. Unexercised warrants will lapse, and paid amounts will be forfeited after 18 months.
Why this matters
The ₹60 crore capital raise can provide Likhitha Infrastructure with necessary funds for expansion, debt reduction, or working capital needs. The appointment of two new executive directors, Mrs. Lohitha Gaddipati and Mr. Chandra Dheerajram, effective June 22, 2026, suggests a strategic move to enhance technical expertise and operational management within the company.
The backstory
Likhitha Infrastructure operates in the infrastructure sector, focusing on projects like pipelines for oil and gas. The company's operations involve significant project execution and planning. This preferential issue and board expansion are likely aimed at bolstering its capacity to undertake larger projects and improve internal processes.
What changes now
With the board's approval, the company will proceed with seeking necessary shareholder and regulatory sanctions for the preferential issue. The new directors are expected to bring specialized skills. Mrs. Lohitha Gaddipati's expertise lies in civil engineering, design, and project planning, while Mr. Chandra Dheerajram brings global operational experience and a focus on data-driven execution.
Risks to watch
Family relationships between the new appointees and existing leadership—Mrs. Lohitha Gaddipati is the daughter of the Managing Director and sister of the CFO, while Mr. Chandra Dheerajram is the son-in-law of the MD and husband of the CFO—could raise governance concerns for some investors regarding potential conflicts of interest and transparency in decision-making.
Peer comparison
Infrastructure companies often raise capital through rights issues, preferential allotments, or debt to fund growth. The price per warrant of ₹240 at a face value of ₹5 is a significant premium, indicating the company's market valuation or future prospects as perceived by the board.
Context metrics (time-bound)
The preferential issue aims to raise ₹60 crore (₹6,000 lakh) over 18 months. The new directors' appointments are effective from June 22, 2026.
What to track next
Investors should monitor the progress of obtaining shareholder and regulatory approvals for the warrant issue. Additionally, tracking the contribution of the new executive directors towards operational modernization and project execution will be crucial.