Fabtech Technologies Cleanrooms IPO listing: Fabtech Technologies Cleanrooms shares made an exceptional debut on Friday, January 10, listing at ₹161.50 on BSE SME, a premium of 90 percent from issue price of ₹85.
Fabtech Technologies’ initial public offering (IPO), valued at ₹27.74 crore, was open for subscription from January 3 to January 7. The SME IPO had fixed a price band in the range of ₹80-85 per equity share.
Following the three days of bidding, Fabtech Technologies IPO closed with exemplary demand, garnering 227.67 times bids. The IPO received bids for 192.83 crore shares against 84.70 lakh shares on offer. The retail investor segment was booked 101.79 times, while the non-institutional investors (NII) category was subscribed 501.75 times. Meanwhile, the Qualified Institutional Buyers quota was bid 242.4 times on the 3 days of bidding.
About the IPO
Fabtech Technologies IPO was is entirely a fresh issue of 32.64 lakh shares and there is no offer for sale component in the issue. Retail investors could apply with a minimum lot size of 1600 shares, requiring a minimum investment of ₹1.36 lakh .
Fabtech Technologies IPO raised ₹7.89 crore from anchor investors ahead of the IPO on January 2, 2024.
The company plans to utilize the gross proceeds from the issue, net of issue-related expenses, to address several key objectives. These include meeting long-term working capital requirements, acquiring equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited, and funding general corporate purposes.
Vivro Financial Services Private Limited is the book running lead manager of the Fabtech Technologies IPO, while Maashitla Securities Private Limited is the registrar for the issue.The market maker for Fabtech Technologies IPO is Rikhav Securities Limited.
“The company enjoys niche place in building cleanrooms for pharma, healthcare and biotech sectors, including related services. It posted steady growth from FY22 to FY23, but suffered a setback following change in product mix and delayed shipments of orders. Based on its recent earnings, the issue appears fully priced. The company is likely to catch first mover fancy post listing. Investors may park funds for the medium to long term,” said Dilip Davda of Chittorgarh.com recommending an ‘apply’ rating for the IPO.
About the Company
Fabtech Technologies Cleanrooms Limited, established in 2015, specializes in manufacturing pre-engineered and pre-fabricated modular panels and doors for cleanrooms, catering to the pharmaceutical, healthcare, and biotech sectors. The company serves as a comprehensive supplier of cleanroom products and technology, offering a wide range of solutions including cleanroom panels, view panels, doors, ceiling panels, covings, HVAC systems, and electrification works, customized to meet specific plant designs and requirements.
With extensive expertise in designing, manufacturing, and installing cleanrooms across various industries, Fabtech Technologies also provides robust after-sales service support. However, the company’s financial performance showed a decline between the fiscal years ending March 31, 2024, and March 31, 2023, with revenue decreasing by 22 percent and profit after tax (PAT) falling by 27 percent.
