Cleanroom infrastructure components manufacturer, Fabtech Technologies Cleanrooms Limited is set to make its market debut with an initial public offering (IPO), valued at ₹27.74 crores, an entirely fresh issue of 32.64 lakh shares. The subscription window opens on January 3, 2025, and draws to a close on January 7, 2025. Investors can track this company’s market journey as it prepares for its listing on the BSE SME platform, scheduled for Friday, January 10, 2025.
Fabtech Technologies Cleanrooms Limited presents a public offering, with equity shares of ₹10 face value being offered within a price band of ₹80 to ₹85 per share and a lot size of 1,600 shares. Interested retail investors can participate with a minimum investment of ₹136,000 to buy 1 lot, while High Net-worth Individuals (HNI) are invited to participate with a minimum subscription of ₹272,000 (2 lots). The company has planned a swift post-subscription timeline, with share allotment notifications slated for January 8, 2025, followed by its debut on the BSE SME platform on January 10, 2025. As this cleanroom solutions provider embarks on its public market journey, investors stand at the cusp of an emerging opportunity in the segment.
Fabtech Technologies Cleanrooms Limited IPO is a fundraise worth ₹27.74 crores comprising purely of a fresh issue with 164,800 shares reserved for the market maker Rikhav Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 3, 2025, to January 7, 2025, providing an opportunity for investors looking to gain a stake in the company.
| Fabtech Technologies Cleanrooms IPO Date | January 3, 2025 - January 7, 2025 |
| Price Band | ₹80 to ₹85 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,600 shares |
| Issue Type | Book Built Issue IPO |
| Fresh Issue Size | 32,64,000 shares amounting to ₹27.74 crores |
| Total Issue Size | 32,64,000 shares amounting to ₹27.74 crores |
| Listing at | BSE SME |
| Market Maker Portion | 164,800 - Rikhav Securities Pvt Ltd |
| Share Holding Post Issue | 1,23,19,362 shares |
| Share Holding Pre Issue | 90,55,362 shares |
The Fabtech Technologies Cleanrooms Limited IPO opens for subscription on January 3, 2025, and closes on January 7, 2025, with allotment scheduled for January 8, 2025.
| IPO Open Date | January 3, 2025 (Friday) |
| IPO Close Date | January 7, 2025 (Tuesday) |
| Basis of Allotment | January 8, 2025 (Wednesday) |
| Initiation of Refunds | January 9, 2025 (Thursday) |
| Credit of Shares to Demat Account | January 9, 2025 (Thursday) |
| Listing Date on NSE SME | January 10, 2025 (Friday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on MONTH DATE, 2025 (Tuesday) |
Fabtech Technologies Cleanrooms Limited, founded in 2015, specializes in manufacturing cleanroom infrastructure components including modular panels, doors, HVAC systems, and electrical works for pharmaceutical, healthcare, and biotech industries. The company provides comprehensive cleanroom solutions, from design and manufacturing to installation and after-sales support, operating through its main manufacturing facility in Gujarat and its subsidiary Altair Partition Systems LLP in Thane.
The company's primary facility in Umbergaon spans 70,000 sq. ft. and is equipped with advanced machinery for producing high-grade cleanroom partitions, while its subsidiary Altair focuses on economical grade modular panels from a 25,000 sq. ft. leased facility in Murbad. With 117 permanent employees as of November 2024, Fabtech serves as an end-to-end supplier of cleanroom products and technology, tailoring solutions to specific plant designs and requirements.
The company plans to use the net proceeds from the issue (after deducting related expenses) for three main purposes: funding its long-term working capital needs, acquiring equity shares in Kelvin Air Conditioning and Ventilation Systems Private Limited, and supporting general corporate activities.
The Fabtech Technologies Cleanrooms Limited IPO reportedly saw an annual dip of 22% in its revenue and 27% yearly decline in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of March 31, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 11.96%, Return on Capital Employed (ROCE) at 15.83% and a Debt-to-Equity ratio of 0.11. The Return on Net-Worth (RoNW) stands at 11.95%, and the PAT Margin was 5.90%. The Price to Book Value was 1.38. The company’s market capitalisation is ₹104.71 crore.
| Period Ended | July 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 6,222.89 | 9,799.26 | 12,510.15 | 11,394.85 |
| Assets | 9,438.96 | 8,911.75 | 8,057.67 | 8,187.62 |
| Net Worth | 6,187.78 | 5,145.17 | 4,530.25 | 3,734.76 |
| Profit After Tax | 540.18 | 578.46 | 796.28 | 360.02 |
| Reserves & Surplus | 5,299.93 | 4,886.69 | 4,275.41 | 3,479.13 |
| Total Borrowing | 320.03 | 574.63 | 566.46 | 850.18 |
Amount in ₹ lakhs
The pre-IPO EPS is at ₹6.39 while the post-IPO EPS will be ₹8.77. Similarly, the pre-IPO Price to Earnings ratio is 13.31 and will become 9.69 post-IPO.
Fabtech Technologies Cleanrooms demonstrates robust capabilities as an end-to-end cleanroom infrastructure solution provider, backed by extensive domain expertise spanning over seven years in the industry. The company's foundation rests on its advanced manufacturing infrastructure, spread across 95,000 sq. ft. in two locations, equipped with automated facilities and high-performing machinery. Led by experienced promoters and management, the company benefits from their deep domain knowledge. Their comprehensive product portfolio encompasses everything from modular panels to HVAC systems, complemented by strong after-sales support that fosters long-term customer relationships.
The company's strategic positioning is further enhanced by support from a larger group company and its subsidiary Altair Partition Systems LLP, which expands market reach through economical grade modular panels. With 117 permanent employees bringing specialized expertise, Fabtech has demonstrated effective project integration capabilities and maintains high manufacturing standards essential for pharmaceutical and healthcare applications. Their focus on strategic integrations and acquisitions, including the proposed purchase of Kelvin Air Conditioning, indicates a clear path for inorganic growth and business expansion.
Fabtech faces significant operational and financial challenges, including a history of negative cash flows in prior periods. The company's heavy dependence on the pharmaceutical, healthcare, and biotech sectors makes it vulnerable to industry-specific downturns and capital expenditure fluctuations. Additionally, their reliance on a limited number of suppliers for key raw materials, coupled with the absence of long-term supply arrangements, poses potential risks to their supply chain and operational stability. The company also faces various compliance risks related to required approvals and licenses, and their logo remains unregistered as of the Red Herring Prospectus date.
The company's challenges extend to their competitive landscape, where they operate against established players who may have better resources, potentially impacting pricing and margins. There are pending litigations against the company, its promoters, and directors that could result in financial liabilities and reputational damage. Their geographical focus primarily on India limits international market exposure, and a significant portion of their IPO proceeds is allocated to working capital, indicating substantial operational funding needs. Furthermore, their contingent liabilities and the proposed acquisition of Kelvin Air Conditioning shares present additional financial risks, especially since the deployment of Net Proceeds isn't appraised by any independent agency.
Investing early in Fabtech Technologies Cleanrooms Limited could offer an opportunity to be part of the company's growth in the cleanroom infrastructure manufacturing sector. However, potential investors should thoroughly evaluate various factors, such as the company's operational performance, financial stability, industry trends, and growth strategy, while also aligning with their own investment goals and risk tolerance. It is advisable to carefully review the offer document and consult with a professional if necessary to make a well-informed decision about participating in the IPO.
What is the Fabtech Technologies Cleanrooms Limited IPO?
The Fabtech Technologies Cleanrooms Limited IPO is a BSE SME offering consisting of 32.64 equity shares with a face value of ₹10 per share, aiming to raise to ₹27.74 crore. The price band has been set between ₹80 to ₹85 per share, with a minimum order quantity of 1,600 shares. This IPO will be open for subscription from January 3, 2025, to January 7, 2024. Vivro Financial Services Private Limited is the book-running lead manager, Maashitla Securities Private Limited is the registrar while Rikhav Securities Limited is the market maker.
When will the Fabtech Technologies Cleanrooms IPO open?
The Fabtech Technologies Cleanrooms Limited IPO will open for subscription on January 3, 2025, and will close on January 7, 2025.
When is the Fabtech Technologies Cleanrooms IPO listing date?
The tentative listing date for the Fabtech Technologies Cleanrooms Limited IPO is Friday, January 10, 2025.
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