Corrtech International gets Sebi's go ahead to float IPO

Synopsis 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. New Delhi: 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.