Fabtech Technologies Cleanrooms, a leading provider of turnkey pharmaceutical solutions and clean-air technology, is launching its IPO aiming to raise ₹27.74 crores through a fresh issue of 32.64 lakh shares. The IPO opens on January 3, 2025, and closes on January 7, 2025. The shares are priced within a band of ₹80 to ₹85 per equity share, with a market capitalization of ₹104.71 crores at the upper price band of ₹85. The Grey Market Premium (GMP) is reported at ₹23, indicating an expected listing gain of 27.06%. The shares will be listed on the BSE SME on January 10, 2025.

IPO Price, Subscription, and Allotment

The price band for the Fabtech Cleanrooms IPO is set at ₹80-₹85 per share, and the lot size is 1,600 shares. Retail investors need to invest a minimum of ₹1,36,000, while High-Net-Worth Individuals (HNIs) must invest in two lots, totaling ₹2,72,000. As of January 3, 2025, the IPO has been subscribed 3.34 times on its first day of the subscription period. The allotment date is set for January 8, 2025, and investors can check the allotment status on the registrar's website.

Business Overview

Fabtech Cleanrooms specializes in designing and installing HVAC and cleanroom systems tailored to various sectors, including pharmaceuticals, biotechnology, food processing, and electronics. The company’s leadership in clean-air technology has enabled it to cater to a wide array of industries that require controlled environments for their operations. Fabtech’s turnkey solutions ensure seamless and efficient cleanroom management, backed by its two decades of industry experience.

Financial Performance and Valuation

Fabtech Technologies Cleanrooms has reported strong financial growth over the past few years. The revenues from operations for FY24 were ₹6,222.89 Lakh, showing a steady upward trajectory compared to the previous years. The EBITDA for FY24 stood at ₹754.41 Lakh, and the profit after tax was ₹540.18 Lakh, demonstrating robust profitability. The company’s pre-issue EPS is ₹6.92, and the post-issue EPS is projected to be ₹4.70, with a P/E ratio of 12.28x pre-issue, and 18.10x post-issue.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Fabtech Cleanrooms has been recorded at ₹23, suggesting an expected listing gain of 27.06%. Although GMP is not a guaranteed indicator of listing gains, it reflects strong demand for the stock in the unofficial market. Given the company’s solid financial performance and competitive valuation, it is expected that the stock will perform well upon listing.

Objectives of Fabtech Technologies Cleanrooms Limited IPO

The net proceeds from the IPO will be used for the following purposes:

1. ₹1,400.00 Lakh for long-term working capital requirements.
2. ₹550.00 Lakh for the acquisition of equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited.
3. For general corporate purposes.

Should You Invest in Fabtech Technologies Cleanrooms IPO?

Given the strong financials and the potential for listing gains, Fabtech Cleanrooms presents a promising investment opportunity. The GMP indicates investor confidence, and the company’s track record in providing innovative cleanroom solutions adds to the positive outlook. If you are looking for short-term gains upon listing or want to tap into the growing demand for cleanroom systems in various sectors, the Fabtech Cleanrooms IPO is a strong candidate.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, B R Goyal.

The Current active IPO is   Fabtech Technologies, Leo Dry Fruits, Davin Sons, and Parmeshwar Metal.

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