Following a strong subscription demand of over 700 times to its over 27-crore issue during its 3-day bidding period between January 3 and 7, Fabtech Technologies shares became public on the stock exchange on January 10 at a 90 percent premium over their initial public offering (IPO) price.
Fabtech Technologies Cleanrooms IPO listing:
On Friday, January 10, shares of Fabtech Technologies Cleanrooms made a spectacular start, trading at ₹161.50 on the BSE SME, 90 percent over the issue price of ₹85.
The ₹27.74 crore initial public offering (IPO) of Fabtech Technologies was available for subscription between January 3 and January 7. The price range set for the SME IPO was between ₹80 and ₹85 per equity share.
After three days of bidding, Fabtech Technologies’ initial public offering (IPO) was completed with exceptional demand, receiving 227.67 times bids. 192.83 crore shares were bid on during the IPO, out of the 84.70 lakh shares that were available. While the non-institutional investor (NII) category was subscribed to 501.75 times, the retail investor sector was booked 101.79 times. In the meantime, the Qualified Institutional quota was bid 242.4 times over the three days of bidding.
About the IPO:
There was no offer for sale component to the Fabtech Technologies IPO; it was a completely new issue of 32.64 lakh shares. Retail investors could apply with a minimum investment of ₹1.36 lakh and a minimum lot size of 1600 shares. Prior to its January 2, 2024, IPO, Fabtech Technologies received ₹7.89 crore from anchor investors.
After deducting issue-related costs, the corporation intends to use the issue’s gross proceeds to accomplish a number of important goals. These include of funding general business objectives, obtaining equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited, and satisfying long-term working cash requirements.
The Fabtech Technologies IPO’s book-running lead manager is Vivro Financial Services Private Limited, while the issue’s registrar is Maashitla Securities Private Limited. Rikhav Securities Limited is the market maker for Fabtech Technologies’ initial public offering.
“The business specializes in creating cleanrooms for the biotech, pharmaceutical, and healthcare industries, along with associated services. From FY22 to FY23, it showed consistent growth; nevertheless, a shift in the product mix and delayed order delivery caused a setback. The issue seems to be fully valued based on its recent profits. After listing, the business is likely to catch the first mover. A ‘apply’ rating for the IPO was suggested by Dilip Davda of Chittorgarh.com, who stated that investors may lodge their money for the medium to long term.
Established in 2015, Fabtech Technologies Cleanrooms Limited focuses on producing pre-engineered and pre-fabricated modular panels and doors for cleanrooms, serving the biotech, pharmaceutical, and healthcare industries. The business is a full-service provider of cleanroom technology and products, providing various solutions tailored to particular plant designs and specifications, such as cleanroom panels, view panels, doors, ceiling panels, covings, HVAC systems, and electrification projects.
Fabtech Technologies has extensive experience in cleanroom design, production, and installation for various industries. They also offer strong after-sales service support. However, during the fiscal years ending March 31, 2024, and March 31, 2023, the company’s financial performance declined, with sales falling by 22% and profit after tax (PAT) decreasing by 27%.
