When is the Corrtech International IPO likely to hit markets and what is the core business?

Corrtech International, based out of Gujarat is engaged in providing pipeline laying solutions to institutional and corporate customers. The company has been in existence for over 38 years and the board of directors comprises of Pradyumna Tiwari, Sandeep Indrasen Mittal and Amit Indrasen Mittal. Corrtech filed its draft red herring prospectus (DRHP) with SEBI on 17-March. IPO approval process by SEBI normally takes 2-3 months so final approval could come by May or June 2022.

The Corrtech International IPO would be a combination of a fresh issue and an offer for sale (OFS). There will be a fresh issuance of shares worth Rs.350 crore and an OFS of 40 lakh shares by the promoters. The actual size of the OFS will only be known once the price band is announced. The OFS share selling will be entirely done by the promoters and it will only result in change of ownership, with no fresh funds coming in.

The fresh issue of Rs.350 crore will be used for redemption of debentures, repayment of other types of debt, CAPEX for purchase of new equipment, infusing capital into its subsidiary as also for working capital and general corporate purposes. A slew of approved IPOs are currently waiting in the side lines for the LIC IPO to get through so that the liquidity pressure in the market can be avoided.

Corrtech International is a leading providers of pipeline laying solutions. It caters mainly to the oil and gas sector for its pipeline laying works in India. It also handles EPC solutions.