September 16, 2024
New Delhi, India
Upcoming IPO
Fabtech Technologies Ltd, a Mumbai-based pharmaceutical equipment solutions provider, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company aims to raise funds to support its working capital and pursue acquisition opportunities.
Key Details:
- Industry and Operations: Fabtech Technologies offers end-to-end engineering solutions for pharmaceutical equipment, from design and procurement to installation and testing. The company’s turnkey solutions cater to both greenfield and brownfield projects globally, with a strong presence in countries like Saudi Arabia, Egypt, Bangladesh, and UAE.
- IPO Structure: The IPO will consist of a fresh issue of up to 1.20 crore equity shares, with a face value of ₹10 each. ₹120 crore will be allocated to working capital, ₹30 crore towards acquisitions, and the rest for general corporate purposes.
- Additional Placement Option: The company might consider an additional ₹10 crore equity placement through private or preferential offerings, depending on market conditions.
- IPO Process: Shares will be issued through a book-building process, with 50% allocated to institutional buyers, 15% to non-institutional bidders, and 35% reserved for retail investors. The IPO also has provisions for employee participation at a discounted rate.
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Financial Performance and Growth:
Fabtech Technologies has seen significant growth:
- Revenue from operations increased by 16.69% to reach ₹226.13 crore in fiscal 2024, compared to ₹193.80 crore in fiscal 2023.
- Profit after tax rose by 25.23% to ₹27.21 crore in fiscal 2024.
- The company’s order book grew to ₹726.15 crore as of June 30, 2024, up from ₹613.06 crore as of March 31, 2024.
Leadership and History: Fabtech Technologies, initially incorporated as Globeroute Ventures Private Ltd in 2018, was part of the Fabtech Group before a demerger in 2021. The company is led by Aasif Ahsan Khan, Hemant Mohan Anavkar, and Aarif Ahsan Khan, who collectively bring more than 30 years of experience in the pharmaceutical engineering sector.
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