Mumbai-based Fabtech Technologies Files Draft Papers with SEBI for Upcoming IPO – Here’s What You Need to Know

Fabtech Technologies Ltd, a Mumbai-based company, has submitted its draft red herring prospectus (DRHP) to SEBI, the capital markets regulator, to launch its initial public offering (IPO).

Fabtech Technologies specialises in providing complete solutions for pharmaceutical equipment, including design, engineering, procurement, installation, and testing. The company’s services include market analysis, equipment design, and advanced technologies to improve efficiency and reliability in pharmaceutical manufacturing. They handle both new (greenfield) and existing (brownfield) projects.

Since its founding, Fabtech Technologies has completed 35 projects in countries like Saudi Arabia, Egypt, Bangladesh, Ethiopia, and the UAE by June 30, 2024.

IPO Details

The IPO will consist of a fresh issue of up to 1.20 crore equity shares, each priced at ₹10. Fabtech will use ₹120 crore from the issue for working capital and ₹30 crore for acquisitions and growth. The remaining amount will be used for general corporate purposes.

The company, along with its lead managers, might offer additional shares privately, not exceeding ₹10 crore. If this happens, the size of the fresh issue will be reduced.

Unistone Capital Private Ltd is the lead manager for the issue, and Bigshare Services Private Ltd is the registrar. Shares will be offered through a book-building process, with 50% of the shares for institutional buyers, 15% for non-institutional buyers, and 35% for retail investors. There is also a provision for employees to buy shares at a discounted rate.

Between March 2022 and March 2023, Fabtech Technologies’ order book grew from ₹321.41 crore to ₹613.06 crore. By June 2024, the company’s orders stood at ₹726.15 crore.

For fiscal year 2024, the company’s revenue increased by 16.69%, reaching ₹226.13 crore, compared to ₹193.80 crore in fiscal year 2023. The company’s profit after tax also rose by 25.23%, growing from ₹21.73 crore to ₹27.21 crore.

Fabtech Technologies was founded in 2018 as Globeroute Ventures Private Ltd and was part of the Fabtech Group. In 2021, the company separated from the group to improve operations. The company is led by Aasif Ahsan Khan, Hemant Mohan Anavkar, and Aarif Ahsan Khan, who have over 30 years of combined experience in pharmaceutical engineering.