Fabtech Technologies Cleanrooms Limited IPO Launch in 2025: What Investors Need to Know

Fabtech Technologies Cleanrooms Limited is launching an initial public offering (IPO) of ₹27.74 crores through a book-built process. The issue consists of a fresh issuance of 32.64 lakh shares.

The initial public offering (IPO) will go live on January 3, 2025, and close on January 7, 2025. By January 8, 2025, the share allocation is anticipated to be completed, and on January 10, 2025, the shares will be listed on the BSE SME platform.

The price band for the IPO has been set between ₹80 and ₹85 per share. The minimum application lot is 1,600 shares, requiring an investment of ₹1,36,000 for retail investors. High-net-worth individuals (HNIs) must apply for a minimum of 2 lots (3,200 shares), which will amount to ₹2,72,000.

Vivro Financial Services Private Limited is the book-running lead manager for the IPO, while Maashitla Securities Private Limited is the registrar for the issue.

For more detailed information, refer to the Fabtech Technologies IPO RHP.

Fabtech Technologies Details:
IPO Date: January 3, 2025 – January 7, 2025
Listing Date: January 10, 2025
Price range for each share: ₹80 to ₹85
Lot Size: 1,600 shares
Total Issue Size: 32,64,000 shares (₹27.74 Cr)
Fresh Issue: 32,64,000 shares (₹27.74 Cr)
Issue Type: Book-built initial public offering
Listing Venue: BSE SME
Pre-issue Shareholding: 90,55,362 shares
Post-issue Shareholding: 1,23,19,362 shares

Fabtech Technologies Reservation:
The issue is reserved as follows:
– Anchor Investors: 9,28,000 shares (28.43%)
– Market Maker: 1,64,800 shares (5.05%)
– QIBs: 6,19,200 shares (18.97%)
– NII (HNIs): 4,65,600 shares (14.26%)
– Retail Investors: 10,86,400 shares (33.28%)

 Fabtech Technologies Anchor Investors:
– Anchor Bid Date: January 2, 2025
– Shares Offered to Anchors: 9,28,000
– Anchor Portion Size: ₹7.89 crore
– Anchor Lock-in Period:
– 50% of the shares (30 days): Until February 7, 2025
– Remaining 50% of shares (90 days): Until April 8, 2025

Fabtech Technologies Timeline (Tentative):
IPO Open Date: January 3, 2025
IPO Close Date: January 7, 2025
Basis of Allotment: January 8, 2025
Refunds begin on January 9, 2025.
Shares credited to Demat on January 9, 2025
Listing Date: January 10, 2025

Fabtech Technologies initial public offering Lot Size:
– Retail Investors: Minimum 1 lot (1,600 shares) ₹1,36,000
– HNI Investors: Minimum 2 lots (3,200 shares) ₹2,72,000

Fabtech Technologies initial public offering Promoter Holding:
– Pre-issue Holding: 93.07%
– Post-issue Holding: 90.55% (approx.)

 About Fabtech Technologies Cleanrooms Limited:
Founded in 2015, Fabtech Technologies Cleanrooms manufactures modular panels and doors for cleanrooms in the pharmaceutical, healthcare, and biotech industries. The company offers a complete range of cleanroom products, including panels, doors, HVAC systems, and related services. It operates a manufacturing facility in Umbergaon, Gujarat, and a subsidiary in Murbad, Thane.

 Company Financials (Restated Consolidated):
For the fiscal year ending March 31, 2024, Fabtech Technologies reported a decrease in revenue by 22% and a decline in profit after tax (PAT) by 27% compared to FY 2023.

 Key Financial Metrics:
– Revenue (FY 2024):** ₹9.80 crore
– PAT (FY 2024):** ₹5.78 crore
– Return on Equity (ROE):** 11.96%
– Price-to-Book Value (P/BV):** 1.38
– P/E Ratio (Pre-IPO):** 13.31
– P/E Ratio (Post-IPO):** 9.69

Objective of the Issue:
The initial public offering proceeds will be utilised for:
1. Long-term working capital requirements
2. Acquisition of equity shares in Kelvin Air Conditioning and Ventilation Systems Pvt Ltd
3. General corporate purposes

Subscription Status (As of January 3, 2025):
– Total Subscription: 6.61 times
– Retail Category: 11.61 times
– NII (HNI) Category: 3.76 times
– QIB Category: 0 times

IPO Review:
Fabtech Technologies holds a niche position in the cleanroom solutions market for the pharma, healthcare, and biotech sectors. While the company faced some challenges in the last fiscal year, it still has long-term growth potential. Investors seeking medium- to long-term investments may consider applying, as the initial public offering appears fully priced based on current earnings.