Mumbai-based Fabtech Technologies Limited gets Sebi nod for IPO

Mumbai-based Fabtech Technologies, a key turnkey engineering solution provider in the pharmaceuticals capex space, offering comprehensive start-to-finish solutions encompassing designing, engineering, procurement, installation, and testing of pharmaceutical equipment for a wide range of customers, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The Company had filed its IPO papers with Sebi on September 14, 2024.

The IPO with a face value of Rs 10 per equity share is entirely a fresh issue of up to 1.20 crore equity shares. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.

The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a private placement, preferential offer, or any other method aggregating up to Rs 10 crores, as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.

The Issue is being made through the book-building process, wherein not more than 50% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.

The proceeds from the fresh issue to the extent of ₹120 crore will be used for funding the working capital requirements of the company; Rs 30 crore for pursuing inorganic growth initiatives through acquisitions; and general corporate purposes.

Fabtech Technologies Limited is a member of the Fabtech Group, which was established in 1995 The company has over 29 years of experience in pharmaceutical turnkey projects, and in a short space of time, it has transformed into a technology-oriented organization with a focus on quality, design, and project delivery.

Fabtech’s business model is highly leveraged and characterized by low asset intensity. Building on a strong technical background and experience, it delivers turnkey solutions for aseptic manufacturing, ranging from design to certificate. The firm’s international presence has been established in more than 62 countries, and major areas of operation include the Middle Eastern and Northern African, Asian, European, and American regions.

As of June 30, 2024, Fabtech Technologies had an order book aggregating Rs 726.15 crore.

Fabtech Technologies’ consolidated revenue from operations increased by 16.69% from Rs 193.80 crore in Fiscal 2023 to Rs 226.13 crore in Fiscal 2024, primarily due to a rise in Sales of Products, Sales of Services, and Export Incentives. Consolidated Profit after tax increased by 25.23% from ₹21.73 crore in Fiscal 2023 to ₹27.21 crore in Fiscal 2024.

Unistone Capital Private Limited is the sole book-running lead manager to the issue and Bigshare Services Private Limited is the registrar to the offer.