Upcoming IPO: Mumbai-based Fabtech Technologies files IPO draft documents with SEBI

Upcoming IPO: Fabtech Technologies Ltd has filed a draft listing prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI), for its initial public offering (IPO).

Mumbai-based Fabtech Technologies offers end-to-end solutions encompassing the design, engineering, procurement, installation and testing of specialist pharmaceutical equipment to a diverse clientele.

The company’s turnkey engineering solutions encompass a wide range of services, including in-depth market analysis, disease profiling, design and engineering of equipment aligned with manufacturing processes and quality standards, implementation of advanced technologies to improve project efficiency, reliability and sustainability, and implementation and launch strategy. It has the ability to handle both greenfield and brownfield projects.

Since its establishment till June 30, 2024, Fabtech Technologies has successfully completed thirty-five projects in various countries including Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka and the United Arab Emirates.

Release Details

The IPO comprises fresh issue of up to 1.20 crore equity shares, each with a face value of Rs. ₹10.

The company will use ₹120 crore from the new offering to support working capital requirements. In addition, ₹Rs 300 million will be used to pursue growth opportunities through acquisitions, while the remaining funds will be used for general corporate purposes.

The Company, in conjunction with the lead book-running managers, may consider making an additional offering of equity shares through a private placement, preferential offering or otherwise, for an aggregate consideration of up to ₹10 crores and should not exceed 20% of the size of the new release. After completion of such placement, the size of the new release will be reduced.

Unistone Capital Private Ltd is the sole issue manager, with Bigshare Services Private Ltd acting as the registrar of the offer.

The shares of the company are being issued through a book-building process. Qualified institutional buyers will be allotted up to 50% of the net issue on a pro rata basis. Non-institutional bidders will have access to at least 15% of the offer, while retail bidders will receive not less than 35% of the offer. In addition, there is a provision for eligible employees to subscribe to the offer and a discounted rate is available for employees participating in the reserved portion.

In the period from March 31, 2022 to March 31, 2023, the value of the company’s order portfolio was ₹321.41 crore; by March 31, 2024, it had increased to ₹613.06 crore. Fabtech Technologies has orders ₹726.15 crore as on June 30, 2024

In fiscal year 2024, Fabtech Technologies’ total operating income increased by 16.69%, reaching ₹226.13 crore, up from ₹193.80 crore in fiscal 2023. The increase was mainly due to higher product sales, service sales and export incentives. Further, consolidated profit after tax increased by 25.23% to ₹27.21 crore in fiscal 2024, which is a significant increase over ₹21.73 crore in fiscal 2023.

Fabtech Technologies, a part of the Fabtech Group, was founded in 2018 under the name Globeroute Ventures Private Ltd. In 2021, the company spun off from the group to increase operational efficiency.

Aasif Ahsan Khan, Hemant Mohan Anavkar and Aarif Ahsan Khan lead Fabtech Technologies, combining over 30 years of combined experience in pharmaceutical engineering.

Disclaimer: The above views and recommendations are those of the individual analysts, experts and brokerage firms and not Mint. We recommend that investors consult certified experts before making an investment decision.