Corrtech International gets Sebi's go-ahead to raise funds through IPO

Corrtech International, a pipeline laying solutions provider, has received capital markets regulator Sebi's go ahead to raise funds through an Initial Public Offering (IPO).

The public issue comprises fresh issuance of equity shares worth Rs 350 crore and an offer for sale of 40 lakh shares by promoters, according to the Draft Red Herring Prospectus (DRHP).

Corrtech International, which filed preliminary IPO papers with Sebi in March, obtained an "observation" letter from the regulator on July 1, an update with the markets watchdog showed on Monday.

In Sebi's parlance, its observation implies its approval to float an IPO.

Going by the draft papers, 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 and general corporate purposes.

Corrtech International is one of the leading focused providers of pipeline laying solutions, including hydrocarbon pipeline laying works in India. It is also engaged in providing EPC (Engineering, Procurement and Construction) solutions towards process facilities for material and feed handling in oil and gas refineries and petrochemical complexes.

Equirus Capital is the sole book running lead manager to the issue.