Mumbai-based Fabtech Technologies Limited, a turnkey engineering solutions provider for the pharmaceutical, biotechnology and healthcare industries, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India ( SEBI ) for an initial public offering ( IPO ). The initial public offer, with a face value of Rs 10 per share, will be a fresh issue of up to 1.20 million shares. The offer includes a reservation for eligible employees, with a discount for those who participate in the employee reservation portion.
Fabtech Technologies may consider an issue of additional shares, with the possibility of raising up to Rs 10 crore through a private placement or other means. If such a placement takes place, the size of the fresh issue will be reduced accordingly.
He IPO will follow a book-building process, with no more than 50 percent of the net issuance allocated to qualified institutional buyers (QIBs), at least 15 percent reserved for non-institutional bidders and a minimum of 35 percent for retail individual bidders.
The proceeds from the fresh issue will be used for various purposes – Rs 120 crore will be allocated towards working capital requirements, Rs 30 crore towards acquisitions to drive inorganic growth and the remaining for general corporate purposes.
Founded in 2018 and spun out from Fabtech Group in 2021, Fabtech Technologies specializes in end-to-end engineering solutions for pharmaceutical equipment, offering services from design to installation. It has successfully completed 35 projects in countries including Saudi Arabia, Egypt, Algeria, and Bangladesh. The company operates on an asset-light model and outsources the majority of its equipment needs.
The company’s order book has grown significantly from Rs 321.41 crore in March 2022 to Rs 726.15 crore in June 2024. Fabtech Technologies’ consolidated revenue from operations increased 16.69 per cent in FY24 to Rs 226.13 crore, while profit after tax increased 25.23 per cent to Rs 27.21 crore.
According to a CRISIL report published on the DRHP, the global pharmaceutical industry is expected to increase capital expenditure due to the growing demand for innovative treatments and technological advancements. Fabtech Technologies is poised to benefit from these trends.
Unistone Capital Private Limited is the sole lead book-running manager. IPO Bigshare Services Private Limited being the registrar.
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