Corrtech International Ltd, a provider of pipeline construction solutions, has filed preliminary documents with SEBI in order to generate capital through an IPO. The IPO includes a fresh issuance of equity shares worth Rs. 350 crore as well as a promoter offer to sell 40 lakh shares. Equirus Capital is the issue’s single-book lead manager.
Corrtech International is a major concentrated provider of pipeline laying solutions in India, including hydrocarbon pipeline laying works. It also provides EPC (Engineering, Procurement, and Construction) solutions for process facilities in oil and gas refineries and petrochemical complexes for material and feed handling. It has executed over 50 hydrocarbon pipeline laying projects spanning over 3,500 km in 13 states across a variety of topographies and weather situations, including over 229 kilometres of 48″
diameter gas pipeline and HDD crossings with individual crossing profile lengths of 2.2 km. GAIL (India) Limited, Indian Oil Corporation Limited, Oil and Natural Gas Corporation Limited, Hindustan Petroleum Corporation Limited, GSPL India Gasnet Limited, and Bharat Petroleum Corporation Limited are key customers in the Oil & Gas segment, as are other players such as IHB Limited and Indradhanush Gas Grid Limited, while Manufacturing Business caters to diverse industry segments such as energy, defense, and general manufacturing, where they supply components and services.
Corrtech International Ltd Financial Status
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 990.9 | 778.2 | 560.7 |
| EBITDA | 95.6 | 97.9 | 74.1 |
| PAT | 28.6 | 34.9 | 24.5 |
| Total Assets | 619.0 | 594.8 | 489.8 |
| Share Capital | 15.7 | 15.7 | 15.7 |
| Total Borrowings | 184.3 | 206.8 | 205.5 |
| Net cash generated from / (used in) operating activities | 60.66 | 84.78 | 51.45 |
| Net cash from / (used in) investing activities | 14.15 | -49.89 | -18.38 |
| Net cash flow from / (used in) financing activities | -63.99 | -29.98 | -43.75 |
| Net increase (decrease) in cash and cash equivalents | 10.82 | 5.51 | -10.68 |
Corrtech International Ltd Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Corrtech International | 996.0 | 6.06 | 38.75 | NA | 20.06% |
| Likhita Infrastructure Limited | 192.9 | 17.05 | 77.77 | 17.69 | 18.90% |
Corrtech International Ltd IPO Key Points
Strengths
- Long-term relationships with clients and pre-qualification experience help secure projects
- Established track record of completed projects and geographical footprint
- Large order book
- Diverse fleet of equipment
Risks
- Derive majority of the revenue only from its and gas services (“O&G Services”)
- Some of its current orders may be modified, cancelled, delayed or not fully paid for by its clients
- Defaulted in payment of certain loans in the past.
- Actual project costs may vary from the estimated cost assumptions underlying its bid and may be unable to meet such additional expenses or any such increase
Corrtech International Ltd IPO FAQs:
Q1. What is the minimum lot size and investment required for the Corrtech International IPO?
Ans. Corrtech International IPO details are yet to be announced.
Q2. What is the price band of the IPO?
Ans. Corrtech International IPO details are yet to be announced.
Q3. When does the Corrtech International issue open and close?
Ans. Corrtech International IPO details are yet to be announced.
Q4. What is the size of Corrtech International IPO issue?
Ans. The issue consists of fresh issuance of equity shares worth Rs 350 crore and an offer for sale of 40 lakh shares by promoters.
Q5. Who are the promoters/key personnels of Corrtech International?
Ans. Corrtech International is promoted by Amit Indrasen Mittal, Sandeep Indrasen Mittal and IEC Projects Limited.
Q6. When will the Corrtech International allotment happen?
Ans. Corrtech International IPO details are yet to be announced.
Q7. What is the Corrtech International listing date?
Ans. Corrtech International IPO details are yet to be announced.
Q8. Who are the book runners for Corrtech International IPO?
Equirus Capital is the book running lead managers to the issue.
Q9. What is the objective of the issue?
Ans. The proceeds from the fresh issue will be used for
- funding redemption of debentures, payment of debt
- financing the capital expenditure for purchase of new equipment
- infusion of equity into subsidiary company
- funding incremental working capital requirements of the company
- general corporate purposes
