Corrtech IPO


Corrtech IPO Details

Corrtech Limited IPO
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Why Subscribe to Corrtech International IPO

Corrtech International is one of the leading focused providers of pipeline laying solutions including hydrocarbon pipeline laying works in India. In addition to pipeline laying and construction, the company is also one of the leading players in horizontal directional drilling (“HDD”) and cathodic protection solutions (“CPS”) over the years. Corrtech International’s subsidiary Corrtech Energy Ltd (“CEL”), manufactures precision components and provides products and services to the gas turbines and steam turbines operators along with services to the aerospace and defence sectors. CEL is also engaged in providing EPC solutions towards process facilities for material and feed handling in oil and gas refineries and petrochemical complexes. Corrtech also manufactures equipment like conditioning skids, pressure vessels, material handling equipment and cathodic protection materials like sacrificial anode for connectivity of oil and gas networks through its wholly owned subsidiary Control Plus Oil & Gas Solutions.

Corrtech is one of the pioneers in pipeline construction, HDD and CPS, offering wide array of services in pipeline industry. Till date, it has executed more than 50 Hydrocarbon pipeline laying projects spanning over 3,500 kms in more than 13 states across a variety of topographies and weather conditions including over 229 kms of gas pipeline with 48” diameter and HDD crossing with individual crossing profile length of 2.2 kms. It has successfully completed projects across geographical and weather conditions including laying of pipeline from Haldia Oil Jetty to Haldia Coastal Area and Dhobi-Durgapur-Haldia Pipeline section along with spurlines under Jagdishpur Haldia Bokaro Dhamra Pipeline project. Its subsidiary CEL has executed a project in the Dahej region for transportation of LPG / propane from port terminal area to the processing area under a composite contract involving EPC of related facilities at both locations and laying a pipeline as long as 11.65 kms between the two.

Its revenue from operations includes Oil and Gas services business (“O&G services Business”), Manufacturing Business and sale of traded products. As part of its O&G Services Business, the company executes projects as construction contractors or as engineering, procurement and construction (“EPC”) contractors as specified in the contract. Corrtech International’s expansive and experienced employee resources and fleet of equipment, together with its engineering skills and capabilities, help them in executing a range of pipeline construction projects involving varying degrees of complexity.

Corrtech caters to a wide variety of industry segments including energy, defence and general manufacturing with a strong roster of customers including GAIL, Indian Oil Corporation Ltd, Oil and Natural Gas Corporation Ltd, Hindustan Petroleum Corporation Ltd, GSPL India Gasnet Ltd, Bharat Petroleum Corporation Ltd, Ethos Energy GmbH, ET International, etc

Objects of the Offer :

The IPO consists of a fresh issue of shares aggregating up to Rs3,500 mn and an offer for sale of 4 million shares. While the DRHP has indicated the approximate size of the fresh issue, the size of the OFS has been only indicated by the number of shares. Thus, the total size of the issue will be known only when the price band for the IPO is finalized.

The proceeds of the fresh issue will be used for redemption of debentures, repayment of debt, capital expenditure for purchase of new equipment, capital infusion into subsidiary as well as for working capital and also for general corporate purposes.

Corrtech IPO Analysis

Consistent track record of financial performance:

The company’s revenues grown significantly in the fiscal gone by, from Rs5,607.33 mn in FY19 to Rs9,909.31 mn in FY21. The company’s EBITDA increased from Rs721 mn in FY19 to Rs906 mn in FY21. The company’s profit increased from Rs 244.71 mn in FY19 to Rs 285.55 mn in FY21.

Consolidated Financial Summary Of Corrtech International

(`₹ in Millions) FY21 FY20
Revenue from Operations 9,909.31 7,782.19
Adjusted EBITDA 906 914
EBITDA Margin (%) 9.14% 11.74%
PAT 285.55 349.49
RoNW (%) 20.06% 29.46%
Basic EPS 6.06 7.42

Competitive Analysis: Market Peers

Corretech International, the pipeline solutions provider, is on its way to the Indian stock markets. Let us look at how companies, that are engaged in similar businesses and listed on the stock markets, stand in terms of their market capitalizations.

Competitors Market Capitalisation
Likhitha Infrastructure Limited ₹ 707 crore

Competitive Strength:

Long term relationship with clients and pre-qualification experience helps us in securing projects

Corrtech Industries is one of the leading focused providers of pipeline laying solutions including hydrocarbon pipeline laying works in India (source: CARE Advisory Report). In addition to pipeline laying and construction, Corrtech has also emerged as the leading player in HDD and CPS over the years (source: CARE Advisory Report). The company has long-standing relationships with leading players in the Indian oil and gas sector including GAIL (India) Ltd,Indian Oil Corporation Ltd, Oil and Natural Gas Corporation Ltd, Hindustan Petroleum Corporation Ltd and with Bharat Petroleum Corporation Ltd.

The company has a large equipment base, technically qualified, experienced employee pool, and strong project management systems and capabilities, which enable them to execute large as well as complex projects for its clients in the oil and gas pipeline segment, including for pipeline laying jobs for large oil and gas companies in India. The company’s ability and track-record in offering comprehensive solutions including pipeline laying solutions, cathodic protection services and multi-purpose skids offers a relatively unique proposition to our customers, which helps them improve its share of business.

As part of the company’s manufacturing business, it has created a market for supply of components and services for GE gas turbines in after-market and has also been involved in supply of components to companies in aerospace and defence space in India. It has supplied components and services to Ethos Energy GmbH and ET International for over five years as well as were suppliers for certain components for one of the leading aerospace and defence companies in India.

The company’s long-standing relations with its customers and pre-qualifications help them win new business, bid for increasingly more complex projects, enables them to choose projects which match its margin expectations and help them expand its manufacturing business going forward.

Established track record of completed projects and geographical footprint

Over the last two decades, the company has completed more than 50 Hydrocarbon pipeline laying projects spanning over 3,500 kms in more than 13 states across a variety of topographies and weather conditions including projects of over 229.00 kms of gas pipeline with 48” diameter and HDD crossing with individual crossing profile length of 2.2 kms. Over 39 years of operations, it has received numerous awards including certificate of appreciation from Engineers India Ltd as project management consultant, a letter from Indian Oil Corporation Ltd for our performance for mainline welding of 9.245 kms in a single day against a target of 5 kms welding in a single day.

It has developed an established track record of efficient project management and execution experience, involving trained and skilled manpower, efficient deployment of equipment and that prompted them to complete projects prior to or by scheduled timelines which helped grow its business. The company has executed projects across differing terrains including across desserts, mountains, cities and forests. The company’s quality of work and timely execution has allowed them to enhance its relationships with existing clients and to secure projects from new clients.

Large order book

Since the company’s incorporation, it has undertaken projects in Oil & Gas services business. As of December 31, 2021, it has an order book of over Rs24,400 mn, which is 2.63x the revenue from O&G services business for FY21. the company’s order book provides partial visibility of revenues from its O&G services business stream and enables them to plan our expansion and capital requirements in-line with growth in business.


  • The company relies heavily on Oil & gas business for its revenues.

  • The company is reliant on its contracts with limited businesses.


  • Utilising economies of scale to expand into adjacent industries and segments could prove to be lucrative in the near future.

  • Fostering relationships with current clients could lead to upselling the company’s services, increasing the average order value.

  • Capturing markets in newer geographies can be profitable and provide a hedge to the company’s domestic operations.


  • At present, Oil &Gas segment contributes to a major chunk of the company’s revenues. Any disruption in this segment could adversely affect the company’s profitability.

  • This is a sector that faces its share of government regulation. A change in certain government policies could disturb its operations.

Strategies going forward:

Continued focus on the pipeline construction business for oil and gas companies and undertake bigger project

As per CARE Advisory Report, the pipeline network in India is expected to expand to around 34,000 Kms over the medium to long term, putting in place most of the 100 national gas grid that would connect all major demand and supply centres in the country and this pipeline infrastructure is expected to entail a capex of around Rs46,000 crores. Corrtech intends to capitalize on this opportunity by leveraging its customer relationships, project expertise, fleet of equipment and trained manpower.

The company’s understanding of diverse geographic terrains and experience across complex projects will help them maintain and strengthen its market position. A key element of Corrtech International growth strategy is to seek to improve the performance and competitiveness of its existing activities. Its focus has been on increasing the scale and complexity of its projects in recent years and continue to focus on projects with higher contract values. The company believes that as complexity and size of underlying projects increase, the customers would prefer service providers like them who has an established track-record in the sector.

The company intends to invest in latest equipment and technology to support its expanding operations and intend to use part of net proceeds from the IPO towards augmenting its equipment base. Corrtech International subsidiary CEL is interested in the EPC space in the refinery and petrochemical sectors where it has recently completed a contract in a petrochemical complex. CEL is presently executing an EPC project in Kochi for one of the large companies in the oil and gas sector and has recently been awarded an EPC project by one of the large companies in the oil and gas sector for the Barauni refinery.

Entering into the water pipeline business sector with focus on micro-tunnelling

Corrtech International expects infrastructure development to be a major driver for growth of the Indian industry in the foreseeable future due to ever increasing levels of the GoI’s focus and investment in infrastructure in India. The company has gained expertise in the pipeline construction for the O&G services business with more than 20 years of experience in pipeline laying. It also intends to diversify and bid for projects in the water pipeline sector. Expanding into new functional areas will help them consolidate its position in the infrastructure sector and effectively leverage our experience in executing EPC projects.

This will also help them gain experience in such sectors and be well positioned to strategically expand in these sectors in future. It has the requisite resources, teams and experience of laying pipelines beneath rivers, canals, using HDD techniques for its ongoing and completed projects in O&G services business. It intends to capitalize on its existing capabilities and venture into water and sewage projects throughout the country.

Corrtech also intends to utilise its experience in HDD to venture into micro-tunnelling. Micro-tunnelling is an underground construction technique for constructing utility tunnels of smaller diameter. It is similar to tunnel boring but with reduced diameter. The method is useful for laying pipelines beneath highways, railroads and other sensitive areas with minimum disruption to the surface, thereby minimizing the impact on landscape and environment. According to CARE Advisory Report, the growth of this construction technique has picked up due to robust pipeline projects in sectors such as railways, hydropower, roads and highways, water supply and sewage.

Capitalising on Its expertise to grow in the defence aerospace industry

Corrtech, through its subsidiaries CEL and CPOG cater to diverse industry segments including energy, defence and general manufacturing wherein It supply components and services. For instance, it has undertaken manufacturing of some components for use in defence planes for one of the leading aeronautics company and certain other projects for defence companies in the private sector.

According to CARE Advisory Report, for promotion of indigenous design and to focus on self-reliance in defence manufacturing, GoI has implemented various policies under “Make in India” initiative, and we intend to increase the quantum of production of components for the aerospace and defence sector. CEL intends to further expand its business through a combination of:

  • capitalizing the business to meet its working capital needs and a part of the net proceeds from the IPO are intended to be invested into CEL for this purpose
  • expand its equipment base which will help in maintaining/ expanding its competitiveness and help attract the global OEMs and Tier 1 Indian companies, for whom It can manufacture complex parts and supply in bulk
  • seek global certifications like Nadcap (National Aerospace and Defense Contractors Accreditation Program) which will help them in expanding its aerospace business

Disclaimer -

The content on this page is made available on the basis of the DRHP (draft red herring prospectus ) filed by Corrtech India Limited. The final content could change based on the Red Herring Prospectus (RHP) filed

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Corrtech IPO Issue Highlights

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Frequently Asked Questions on CORRTECH IPO

01.5 Things to know about CORRTECH IPO?

  1. Corrtech has come up with a fresh issue of IPO that aggregates up to ₹3,500 million and an offer for sale of 4 million shares.
  2. Corrtech International is one of the top specialists in pipeline laying solutions, including hydrocarbon pipeline laying work in India. The company has long been a leader in cathodic protection systems (CPS) and horizontal directional drilling (HDD), in addition to pipeline laying and construction.
  3. Corrtech has completed more than 50 hydrocarbon pipeline laying projects totaling more than 3,500 km in length, spanning more than 13 states and a variety of topographies and weather patterns. These projects include more than 229 km of 48" diameter gas pipeline and HDD crossings, each with a profile length of 2.2 km.
  4. With a strong clientele that includes GAIL, Indian Oil Corporation Ltd, Oil and Natural Gas Corporation Ltd, Hindustan Petroleum Corporation Ltd, GSPL India Gasnet Ltd, Bharat Petroleum Corporation Ltd, Ethos Energy GmbH, ET International, etc., Corrtech serves a wide range of industry segments, including energy, defense, and general manufacturing.
  5. Corrtech plans to use its HDD expertise to enter the micro-tunneling industry.

02. Who is the promoter of Corrtech?

Mr. Amit Indrasen Mittal and Mr. Sandeep Indrasen Mitta are the individual promoters of Corrtech. IEC Projects Limited is the corporate promoter of Corrtech.

03. How does Corrtech plan to use the funds from IPO?

The fresh issue's proceeds will be utilized in debt repayment, debenture redemption, capital expenditures for new equipment purchases, capital infusions into subsidiaries, working capital needs, and general corporate purposes.

04. What is the core business of Corrtech?

Corrtech is a pioneer in the pipeline business, providing a wide range of services including HDD and CPS. Additionally, Corrtech Energy Ltd. offers EPC solutions for process facilities that handle materials and feed in petrochemical complexes and oil and gas refineries. Through its fully owned subsidiary Control Plus Oil & Gas Solutions, Corrtech also produces cathodic protection materials such as sacrificial anodes, pressure vessels, material handling equipment, conditioning skids, and other equipment for connecting oil and gas networks.

05. How much funding has Corrtech raised till now?

Not Applicable.

06. Who are the lead managers for Corrtech IPO?

  • Equirus Capital Private Limited
  • Link Intime India Private Limited

07.What are the views of different broking houses on Corrtech IPO?

To be updated.

08. What is the expected opening date for Corrtech IPO?

To be updated.

09. What is the issue size of Corrtech IPO?

Corrtech has come up with a fresh issue of IPO that aggregates up to ₹3,500 million and an offer- for-sale of 4 million shares.

10. What is the expected market cap of Corrtech?

To be updated.

11. Is Corrtech a profitable company?

Yes, Corrtech is a profitable company. It posted a profit of ₹285.55million in FY21.

12.What is the grey market premium for Corrtech IPO?

To be updated.

13.What is the Shareholding pattern of Corrtech?

The latest shareholding pattern of Corrtech is as below-

Sr. No. Name of the Shareholder No. of Equity Shares Percentage of the pre-Offer Equity Share capital
1. ICE projects Limited 18,776,100 39.88
2. Sandeep Indrasen Mittal 7,484,535 15.90
3. Amit Indrasen Mittal 7,220,730 15.34
4. Amit Indrasen Mittal (Jointly with Kavita Amitbhai Mittal) 3,708,360 7.88
5. Sanddep Indrasen Mittal (Jointly with Harini Sandeep Mittal) 3,708,360 7.88
6. Kavita Amitbhai Mittal 3,223,110 6.85
6. Harini Sandeep Mittal 2,959,305 6.29
Total 47,080,500 99.99

14. What are the key financial ratios of Corrtech?

Corrtech’s RONW was 26.67% for FY19, 29.46% for FY20 and 20.06% for FY21. Corrtech’s ROCE was 28.70% in FY19, 31.20% in FY20, and 34.75% in FY21. Corrtech’s Debt-Equity ratio was 2.26 in FY19, which dropped consistently from 1.76 in FY20, and 1.29 in FY21.

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