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What is the story about?
The ₹230 crore Initial Public Offer of Fabtech Technologies, the EPC-Pharma company is opening for subscription on Monday, September 29. The issue will close on Wednesday, October 1.
The price band of the IPO has been fixed between ₹181 - ₹191 per share and the issue comprises of a complete fresh issue of 1.2 crore equity shares.
Investors can bid for one lot of 75 shares, which will entail a minimum investment of ₹14,325 and then in multiples of 75 thereafter.
50% of the issue is reserved for Qualified Institutional Bidders (QIB), 15% for non-institutional investors, while 35% is for retail investors.
Fabtech Technologies provides turnkey engineering solutions for pharma, biotech and healthcare industries. Its services include design, equipment procurement, supply, logistics management, and cleanroom infrastructure for both greenfield and brownfield projects.
It operates on an asset-light model and focuses on execution, project management and software integration.
It is present in over 62 countries in regions such as the Middle East, Africa, Asia, Europe, Latin America and North America.
For financial year 2025, the company reported a revenue of ₹326.7 crore, which is higher than the ₹226.1 crore it reported in financial year 2024. The net profit for the company more than doubled to ₹46.5 crore from ₹21.7 crore last year, while adjusted EBITDA margins narrowed to 8.8% in financial year 2025 from 12% in the previous year.
The company's Return on Equity (RoE) and Return on Capital Employed (RoCE) fell to 16.5% and 19.5% respectively in financial year 2025 from levels above 20% earlier.
At the upper end of the price band, the company is valued at 29.7 times price-to-earnings and 16.9 times Enterprise Value-to-EBITDA (EV/EBITDA) on a one-year forward basis, which, according to SBI Securities, is "fair."
Only 11% of the proposals for the company have been converted into firm orders in the last three years
It relies significantly on third parties and related parties to procure equipment and any supply chain disruption could delay project executions
The company also faces the geographic concentration risk, with 78% of its topline coming from the Middle East North Africa (MENA) region and GCC.
Cash flows for the company are also volatile, and a declining RoE, RoCE are some other risks.
According to SBI Securities, the company's asset light model, proprietary project management system and presence across emerging markets, position it well to benefit from the structural growth in the global pharma space.
However, lower conversion rates and dependence on third-party procurement remain notable risks for the stock.
Since the IPO is fairly valued, it has assigned a "neutral" rating on the same.
The price band of the IPO has been fixed between ₹181 - ₹191 per share and the issue comprises of a complete fresh issue of 1.2 crore equity shares.
Investors can bid for one lot of 75 shares, which will entail a minimum investment of ₹14,325 and then in multiples of 75 thereafter.
50% of the issue is reserved for Qualified Institutional Bidders (QIB), 15% for non-institutional investors, while 35% is for retail investors.
About the Company
Fabtech Technologies provides turnkey engineering solutions for pharma, biotech and healthcare industries. Its services include design, equipment procurement, supply, logistics management, and cleanroom infrastructure for both greenfield and brownfield projects.
It operates on an asset-light model and focuses on execution, project management and software integration.
It is present in over 62 countries in regions such as the Middle East, Africa, Asia, Europe, Latin America and North America.
Financial Performance
For financial year 2025, the company reported a revenue of ₹326.7 crore, which is higher than the ₹226.1 crore it reported in financial year 2024. The net profit for the company more than doubled to ₹46.5 crore from ₹21.7 crore last year, while adjusted EBITDA margins narrowed to 8.8% in financial year 2025 from 12% in the previous year.
The company's Return on Equity (RoE) and Return on Capital Employed (RoCE) fell to 16.5% and 19.5% respectively in financial year 2025 from levels above 20% earlier.
At the upper end of the price band, the company is valued at 29.7 times price-to-earnings and 16.9 times Enterprise Value-to-EBITDA (EV/EBITDA) on a one-year forward basis, which, according to SBI Securities, is "fair."
Risk Factors
Only 11% of the proposals for the company have been converted into firm orders in the last three years
It relies significantly on third parties and related parties to procure equipment and any supply chain disruption could delay project executions
The company also faces the geographic concentration risk, with 78% of its topline coming from the Middle East North Africa (MENA) region and GCC.
Cash flows for the company are also volatile, and a declining RoE, RoCE are some other risks.
Should You Subscribe?
According to SBI Securities, the company's asset light model, proprietary project management system and presence across emerging markets, position it well to benefit from the structural growth in the global pharma space.
However, lower conversion rates and dependence on third-party procurement remain notable risks for the stock.
Since the IPO is fairly valued, it has assigned a "neutral" rating on the same.
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