Likhitha raises ₹60 cr via warrants after profit crashes 77%
The board approved up to 25 lakh convertible warrants at ₹240 each to promoter and 19 others, as Q4 net profit fell 77% YoY. The offer represents 6.2% of market cap.
— 3 earlier stories on Likhitha Infrastructure Ltd. →What's new
- Board approves up to 25 lakh convertible warrants at ₹240 each, raising ₹60 cr.
- Allottees include promoter family members and 19 non-promoter individuals.
- Fundraise follows a 77% YoY drop in Q4 net profit; warrants have 18-month conversion with 25% upfront.
Why this matters
For a micro-cap engineering firm with a market cap of ₹1,007 cr, a ₹60 cr capital raise is material at 6.2% of market cap. Promoter participation signals confidence, but the 7.7% potential dilution and weak earnings raise questions about whether the capital will revive execution or merely shore up the balance sheet.
What we're watching
- Whether warrant-holders convert within 18 months; that will test conviction.
- Any improvement in quarterly profits or order wins to justify the dilution.
- Impact on earnings per share if all warrants convert.
The full read
Likhitha Infrastructure's board has approved a preferential issue of up to 25 lakh convertible warrants at ₹240 each, raising ₹60 crore. The allottees include promoter family members and 19 non-promoter individuals. The warrants require 25% upfront payment and convert into equity within 18 months. This capital raise comes after a brutal earnings decline. Q4 net profit crashed 77% year-on-year, and annual profit fell 44%. For a company with a market cap of ₹1,007 crore, the ₹60 crore infusion is meaningful: about 6.2% of market cap, and would cause 7.7% dilution upon full conversion. Promoter participation provides a vote of confidence, but the recent profit collapse tempers any euphoria. The open question is whether the capital will revive execution or merely paper over the cracks.
Questions answered
- Why is Likhitha raising capital now?
- The company is raising ₹60 cr via warrants after a sharp 77% fall in Q4 net profit. The capital could fund growth or strengthen the balance sheet, but the timing suggests a need for liquidity.
- Who are the allottees in this preferential issue?
- The allottees include promoter family members and 19 non-promoter individuals. The promoter's participation signals insider confidence despite the earnings decline.
- What is the dilution impact of the warrant conversion?
- Full conversion of the 25 lakh warrants at ₹240 each would result in a roughly 7.7% dilution based on the current share count.
- How does the fundraise size compare to the company's market cap?
- The ₹60 cr issue represents approximately 6.2% of Likhitha's market capitalisation of about ₹1,007 cr.
- What is the upfront payment required for the warrants?
- Investors must pay 25% of the warrant price upfront, with the balance due at conversion within 18 months.
- How has the company's profitability trended recently?
- Likhitha's Q4 net profit fell 77% year-on-year, and annual consolidated net profit dropped 44% YoY. The fundraise comes amid this profit squeeze.
Story so far
All notes on LIKHITHA →- 22 Jun 2026 · 7:25 PM IST Likhitha raises ₹60 cr via warrants after profit crashes 77%
- 26d ago Likhitha Infrastructure profit drops 77% as margins compress
- 26d ago Likhitha Infrastructure profit drops 44% as execution headwinds bite
- 26d ago Likhitha Infrastructure profit slumps 70% as execution slows