Upcoming IPO: Fabtech Technologies Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Fabtech Technologies, based in Mumbai, provides end-to-end solutions including design, engineering, procurement, installation, and testing of specialised pharmaceutical equipment for a diverse clientele.

The company’s turnkey engineering solutions encompass a wide range of services, including thorough market analysis, disease profiling, custom equipment design and engineering tailored to manufacturing processes and quality standards, deployment of advanced technologies to improve project efficiency, reliability, and sustainability, as well as execution and commissioning strategy. It possesses the capability to handle both greenfield and brownfield projects.

Since its establishment and up to 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.

Issue Details

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

The company will utilise ₹120 crore from the new offering to support its working capital needs. Additionally, ₹30 crore will be allocated for pursuing growth opportunities through acquisitions, with the remaining funds being used for general corporate purposes.

The company, in collaboration with the lead managers handling the book-running, might contemplate an additional equity shares offering through a private placement, preferential offer, or any other means, totalling up to ₹10 crores, and should not surpass 20% of the fresh issue’s size. Upon completion of such placement, the size of the fresh issue will be decreased.

The issue’s sole book-running lead manager is Unistone Capital Private Ltd, while Bigshare Services Private Ltd serves as the registrar to the offer.

The company’s shares are being issued through the book-building process. Qualified institutional buyers will be allocated up to 50% of the net issue on a proportionate basis. Non-institutional bidders will have access to at least 15% of the offer, while retail bidders will be allocated no less than 35% of the offer. Along with this, 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.

Between March 31, 2022, and March 31, 2023, the company’s order book was worth ₹321.41 crore; by March 31, 2024, it had increased to ₹613.06 crore. Fabtech Technologies has orders of ₹726.15 crore as of June 30, 2024.

In fiscal 2024, Fabtech Technologies’ combined revenue from operations grew by 16.69% to reach ₹226.13 crore, up from ₹193.80 crore in fiscal 2023. This increase was mainly driven by higher Sales of Products, Sales of Services, and Export Incentives. Additionally, the consolidated profit after tax rose by 25.23% to ₹27.21 crore in fiscal 2024, reflecting a significant increase from ₹21.73 crore in fiscal 2023.

Incorporated as Globeroute Ventures Private Ltd, Fabtech Technologies, a part of the Fabtech Group, was established in 2018. In 2021, the company underwent a demerger from the group to enhance operational efficiencies.

Aasif Ahsan Khan, Hemant Mohan Anavkar, and Aarif Ahsan Khan lead Fabtech Technologies, bringing together more than 30 years of combined experience in pharmaceutical engineering.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.