Fabtech Technologies Files for IPO to Fund Expansion

19 Sep 2024 , 01:27 PM

Fabtech Technologies, a turnkey engineering solutions provider in the pharmaceutical, biotech, and healthcare sectors, has filed for an IPO with SEBI.

The IPO consists entirely of a fresh issue of up to 1.20 Crore equity shares, with a reservation for eligible employees, as per the draft red herring prospectus (DRHP). Fabtech may raise up to ₹10 Crore in a pre-IPO round, which would reduce the fresh issue size if completed.

IPO proceeds will be used to fund ₹120 Crore for working capital, ₹30 Crore for acquisitions to support inorganic growth, and general corporate purposes.

Fabtech Technologies is part of the Fabtech Group and was originally incorporated as Globeroute Ventures before demerging in 2021 to enhance operational efficiency.

The company provides end-to-end solutions for designing, engineering, procurement, installation, and testing of pharmaceutical equipment for a diverse customer base.

As of June 2024, Fabtech had completed 35 projects in countries including Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka, and the UAE, with an order book of ₹726.15 Crore.

Revenue for fiscal 2024 increased by 16.7% to ₹226.13 Crore, while profit after tax surged 25.23% to ₹27.21 Crore. Unistone Capital is the sole book-running lead manager for the IPO.