Fabtech Technologies Cleanrooms Ltd., a prominent player in the cleanroom infrastructure sector, has launched its Initial Public Offering (IPO) to raise capital for expansion and operational needs. Here’s an in-depth look at the IPO details, company background, financials, and other essential information for potential investors.
IPO Overview
- Issue Type: Entirely a fresh issue of 32.64 lakh equity shares, totalling ₹27.74 crores.
- Price Band: ₹80 to ₹85 per share.
- Face Value: ₹10 per share.
- Lot Size: 1,600 shares per lot.
- Minimum Investment: ₹1,36,000 for one lot.
- Issue Period: January 3, 2025, to January 7, 2025.
- Listing Platform: BSE SME.
- Allocation:
- Qualified Institutional Buyers (QIB): Up to 50% of the net issue.
- Retail Investors: 35% of the net issue.
- Non-Institutional Investors (NII): 15% of the net issue.
Key Dates
- IPO Opening Date: January 3, 2025.
- IPO Closing Date: January 7, 2025.
- Basis of Allotment: January 8, 2025.
- Initiation of Refunds: January 9, 2025.
- Credit of Shares to Demat Accounts: January 9, 2025.
- Listing Date: January 10, 2025.
Company Profile
Established in 2015, Fabtech Technologies Cleanrooms Ltd. specialises in manufacturing cleanroom infrastructure components for the pharmaceutical, biotech, and healthcare industries. Their product range includes:
- Cleanroom panels.
- View panels.
- Doors.
- Ceiling panels.
- Covings.
- HVAC systems.
- Electrification works.
The company operates a 70,000 sq. ft. manufacturing facility in Umbergaon, Valsad, Gujarat, and has a subsidiary, Altair Partition Systems LLP, in Thane.
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Financial Highlights
- FY 2023:
- Revenue: ₹125.10 crores.
- Net Profit: ₹7.96 crores.
- FY 2024:
- Revenue: ₹98 crores (a 22% decline from FY 2023).
- Net Profit: ₹5.78 crores (a 27% decline from FY 2023).
- Period Ending September 30, 2024:
- Revenue: ₹62.22 crores.
- Net Profit: ₹5.4 crores.
Utilisation of IPO Proceeds
The funds raised through the IPO are planned to be allocated for:
- Acquisition of Kelvin Air Conditioning and Ventilation Systems Pvt. Ltd.
- Long-term working capital requirements.
- General corporate purposes.
Subscription Status
As of January 6, 2025:
- Overall Subscription: 170.85 times.
- Qualified Institutions: 7.48 times.
- Non-Institutional Buyers: 172.09 times.
- Retail Investors: 263.43 times.
Grey Market Premium (GMP)
The grey market premium for Fabtech Technologies Cleanrooms IPO was ₹80 as of January 6, 2025, indicating a potential listing gain of approximately 94.12%.
Note: GMP is speculative and not an official price indicator.
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Risks and Considerations
Potential investors should be aware of:
- Recent declines in revenue and net profit.
- Dependence on the pharmaceutical and biotech sectors.
- Market volatility affecting IPO performance.
Fabtech Technologies Cleanrooms Ltd.’s IPO presents an opportunity to invest in a company with a significant presence in the cleanroom infrastructure sector. However, investors should conduct thorough due diligence, considering the company’s financial performance and market conditions, before making investment decisions.
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