Fabtech Technologies IPO: Date, Price, GMP & Analysis

Fabtech Technologies IPO-Complete Overview

Fabtech Technologies IPO under the SME IPO category is a book-built issue of Rs.27.74 crore (32.64 lac Shares) by Fabtech Technologies Cleanrooms Limited, incorporated in 2015. The company has been involved in manufacturing pre-engineered and pre-fabricated modular panels and doors for the construction of cleanrooms in the pharmaceutical, healthcare, and biotech sectors.

Cleanroom Products and Technologies Supplier for the Whole Plant Cleanroom - Modular Building Parts such as Cleanroom Panels, View Panels, Doors, Ceiling Panels, Covings, HVAC, and Electrification works designed and developed according to the requirements as well as based on the plant designs.

The Company has very extensive exposure to designing, manufacturing, and installing cleanrooms mainly for different industries along with after-sales service support wherever necessitated.

This manufacturing facility is in Umbergaon, Valsad, Gujarat, having a coverage of 70,000 sq. ft. and state-of-the-art machinery for producing cleanroom partitions. The company under its subsidiary, Altair Partition Systems LLP, manufactures modular panels of economical grade. Altair's facility is located at Murbad, Thane which is a leased facility of 25,000 sq. ft.

Fabtech IPO Overview

This Fabtech Technologies Cleanrooms Limited IPO date is 03 January, and its ‘initial public offering’ will end on 07 January 2025. 

The Rs.27.74 crore new SME IPO comprises a wholly fresh issue of 32.64 lac Shares.

This upcoming IPO date is on 03 January 2025. The Fabtech Technologies IPO Price is Rs.80 to Rs.85 for each Share. 

The expected IPO listing date is Friday, 10 January 2025, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here

Company Financial

The company’s revenue fell by -22% and PAT decreased by -27% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Sector-wise Revenue Breakdown  

(Amount in lac)

 

Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill long-term working capital needs.

• Equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited are being proposed for purchase.

• General corporate purposes. 

Peers of Fabtech Technologies IPO Ltd.

There are no listed companies in India, engaged in a similar business of the comparable size.

Evaluation

The Fabtech IPO share price is Rs.80 to Rs.85 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.6.92 from the last year, the resulting P/E ratio is 12.28x.

Considering the weighted EPS of Rs.7.35 for the last three years, the P/E ratio is 11.56x.

Comparative Analysis With Listed Peers

No listed peers, hence no comparison is possible.

IPO's Strengths

• Domain has a wide range of expertise with the capability to execute good project integration.

• Integration strategy for inorganic developments.

• Support by larger group companies. 

• Comprises clean room solution provider with a manufacturing facility automated.

• Promoting and senior management team experience who has rich domain knowledge.

• End-to-end cleanroom infrastructure solution provider.

 

IPO’s Weaknesses

• Dependence on Limited Customers: A significant portion of revenue is derived from a limited number of customers. Any reduction in projects or expansion from these customers can adversely affect the business.

• Pending Litigations: There are ongoing legal proceedings against the company, its promoters, and its directors. Adverse outcomes in these litigations could impose financial liabilities and damaged reputation.

• Reliance on Limited Suppliers: The company depends on a few suppliers for key raw materials and lacks long-term supply arrangements. Supply disruptions could impact operations and profitability.

• Compliance Risks: The company requires various approvals and licenses for its operations. Delays or failures in obtaining or renewing these could disrupt operations.

• Market and Competition Risks: The business operates in a competitive market environment where competitors with better resources could impact pricing and margins, leading to a potential loss of market share.

 

 

Fabtech Technologies IPO GMP

Fabtech Technologies IPO GMP today has not started as of 28 December 2024.

IPO Timetable (Tentative)

The IPO opening date is January 03, with allotment on January 08, refund initiation on January 09, and listing on January 10, 2025.

Fabtech Technologies IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 32,64,000 Shares (Rs.27.74 Cr).

Fabtech Technologies Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.136000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.272000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Fabtech Technologies Ltd.

• Aasif Ahsan Khan

• Aarif Ahsan Khan

• Hemant Mohan Anavkar

• Manisha Hemant Anavkar.
  
  

IPO Lead Managers

Vivro Financial Services Private Limited.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

The Fabtech Technologies IPO stands in a unique opportunity in the industry segment for cleanroom solutions in pharmaceuticals, healthcare, and biotech. It has a clear decline in revenues and profits after reaching a peak some years back. Its expertise, management, and manufacturing capabilities are promising. It has risks, such as dependency on customers and pending litigations. Thus, an investor must analyze a careful evaluation of the financials and objectives before investing in the stock.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here  to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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