Fabtech Technologies files draft papers with SEBI to raise funds via IPO

Mumbai-based Fabtech Technologies, known for its comprehensive engineering solutions in the pharmaceutical, biotech, and healthcare sectors, is ready for its debut on the stock market. The company has just filed its draft red herring prospectus (DRHP) with SEBI, entering into the world of initial public offerings (IPOs).

IPO Highlights

Fabtech Technologies is looking to raise funds by offering up to 1.20 crore fresh equity shares. If you’re wondering, this isn’t just any offer—the company’s also set aside a portion of shares for its employees. On top of that, there’s a chance they could raise up to Rs.10 crore in a pre-IPO round, which might tweak the size of their final issue.

So, what’s the money for? The plan is to use Rs.120 crore for working capital and another Rs.30 crore to fuel their growth with acquisitions and general corporate needs. Sounds like a good strategy for expansion!

Company Overview

Initially incorporated as Globeroute Ventures Private Ltd., Fabtech Technologies demerged from the Fabtech Group in 2021. As of June 2024, they’ve been busy, completing 35 projects across countries like Saudi Arabia, Egypt, and Sri Lanka, and their order book currently sits at a hefty Rs 726.15 crore.

Fabtech Technologies has been performing well financially. For FY24, the company saw a 16.7% bump in revenue, hitting Rs.226.13 crore compared to Rs.193.80 crore the year before. Their PAT also jumped by 25.23%, reaching Rs.27.21 crore, up from Rs.21.73 crore in fiscal 2023. Unistone Capital is serving as the sole book-running lead manager for this IPO.

Conclusion: Fabtech Technologies’ IPO is more than just a chance to go public—it’s a move to boost its financial strength and drive growth. With a strong order book, financials, and clear plans for their IPO funds, they’re setting the stage for an exciting new chapter.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.