Last Updated on October 12, 2023 by BFSLTeam BFSLTeam
Corrtech International Limited is the flagship company of the group Corrtech International Private Limited. This company involves itself in the business of pipeline construction, cathodic protection solutions, and horizontal directional drilling.
Corrtech International Ltd. filed its Draft Red Herring Prospectus to SEBI to go public with an IPO. It plans to earn Rs. 3,500 million from a fresh issue of equity shares in the upcoming Corrtech International Ltd. IPO. An offer for sale (OFS) will also take place.
If you are wondering whether investing in Corrtech International Ltd is worth it, this blog is for you. Keep reading till the end to know more about Corrtech International Ltd. as per its DRHP.
Table of Content
About the Company
Corrtech International Private Ltd. is a prominent player in the pipeline construction business. This company focuses on cathodic protection solutions, and horizontal drilling and manufactures precision components for aerospace and defence companies. Since its establishment in 1982, this company has created a phenomenal track record for itself in these fields.
This company was initially a cathodic protection provider. Later in 2002, Corrtech International Limited ventured into the field of construction projects. Today, the company belongs among the pioneers in these projects and also offers an array of services in this industry.
To date, the company has completed and installed several projects across diverse weather and landform conditions. Corrtech International Limited has completed 50+ Hydrocarbon pipeline laying projects that span over 3,500 km passing through 13 or more states and crossing diverse topographical features.
Corrtech Energy Limited is a subsidiary of this company that focuses on manufacturing precision components. This subsidiary company distributes products and services to gas and steam turbine operators in various sectors. Corrtech International Ltd. also manufactures pressure vessels, cathodic protection materials, conditioning skids and other equipment to ensure connectivity in oil and gas companies. Control Plus Oil and Gas Solutions undertakes the role of manufacturing the above equipment.
As per its DRHP, the total income of Corrtech Limited IPO increased from Rs. 5,628.21 million in FY 2019 to Rs. 9,959.71 million in FY 2021. The company’s profit after tax has also increased from Rs. 244.71 million in FY 2019 to Rs. 285.55 million in FY 2021.
IPO Details and Objectives
Corrtech International Limited filed its DRHP to SEBI on March 16 2022 with the proposal to go public. This company plans to raise around Rs. 1,500 million with a fresh issue of IPO shares.
In the upcoming Corrtech International Limited IPO, the company will issue 40 lakh equity shares as an OFS. Shareholders participating in this Offer for Sale are Harini Sandip Mittal, Amit Indrasen Mittal, Kavita Amitbhai Mittal and Sandeep Indrasen Mittal. The company is yet to announce the total offer price of this upcoming IPO.
The face value of each equity share set by the company along with Book-Running Lead Managers is Rs. 10. After its launch, these shares are likely to be listed in NSE and BSE. Corrtech International Limited is yet to announce the price band, lot size and opening and closing dates for its upcoming IPO.
Corrtech International is planning to use its net proceeds for redeeming its debentures and partial or full repayment or prepayment of debt. It also plans to use some funds to meet capital expenditure to purchase new equipment, infuse equity into a subsidiary and fund various capital requirements.
Also Read: How Can You Analyse An IPO?
Strengths
Following are some of the strengths of this company that make Corrtech International Limited IPO worth investing in.
- Corrtech International Limited has a long-term relationship with big names like GAIL India Limited, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, ONGC and Bharat Petroleum Limited.
- This company has an impressive track record of establishing its presence across various places worldwide. The number of successful projects across 13 Indian states also adds a feather to the company’s cap.
- Corrtech International owns and maintains a large variety of equipment to meet the requirements of various projects.
- This company hosts a professional promoter and management team that efficiently executes the projects owing to its experience in this industry.
- This company has a large order book consisting of past orders and ongoing orders from major clients. Till December 2021, its order book has a value of approximately Rs. 24,400 million.
Risks Associated
Besides the above strengths, here are some risks hampering the business of Corrtech International Ltd. Knowing them can help you make an informed decision regarding the IPO.
- Any health issue outbreak or pandemic situation like the COVID-19 pandemic can cause a public health emergency. This can slow down the company’s operation and can adversely affect its business.
- Oil and gas services are a major source of revenue for Corrtech International Ltd. Any failure to board new contracts and retail old clients can severely affect this company’s business and finances adversely.
Also Read: Risk of investing in IPO
Summary
If you are an interested investor, consider keeping an eye out for the latest updates of Corrtech International Limited’s IPO. Till then, consider browsing through its DRHP to know whether your investment goals align with this company’s IPO plans. You must also have a clear idea of your risk appetite and current finances. This information will help you make a sound financial decision.
Corrtech International Limited IPO FAQs
Concord Enviro Systems Private Limited has a diverse customer base in more than 18 countries. Some of them are in regions like Latin America, Asia, Europe and North America. Two prominent overseas customers of this company are AB Mauri and East Africa Breweries.
For the past three financial years, namely, FY 2019, 2020 and 2021, the EBITDA margin was 23.70%, 19.19% and 17.86% respectively.
The equity shares of Concord Enviro Systems will be listed on BSE and NSE. The information will be updated by the company before the IPO issue date.
DAM Capital Advisors Limited and Equirus Capital Private Limited are the two Book-Running Lead Managers and Link Intime India Private Limited is the registrar for the Concord Enviro Systems Limited IPO.
