Fabtech Technologies Cleanrooms IPO is set to open on January 03, 2025, with a price band of ₹80-85 per equity share. The issue aims to raise ₹27.74 Crores, consisting entirely of a Fresh Issue of 32.64 lakh shares. With the Market Capitalisation reaching ₹104.71 Crores at the upper price of ₹85, the IPO presents an attractive opportunity for investors.

Fabtech Cleanrooms specializes in providing advanced turnkey pharmaceutical solutions by engineering HVAC (Heating, Ventilation, and Air Conditioning) and intelligent cleanroom systems across a variety of sectors. Their extensive expertise has established them as leaders in clean-air technology, crucial in industries like pharmaceuticals, biotechnology, and healthcare. Their systems ensure that stringent air quality standards are met, ensuring a clean and controlled environment essential for the manufacturing of sensitive products.

Grey Market Premium and Subscription Trends:

The Grey Market Premium (GMP) for the Fabtech Technologies Cleanrooms IPO is currently at ₹65, representing a 76.77% potential listing gain. This suggests substantial demand from retail and institutional investors. It is important to note that GMP is a speculative metric and does not guarantee listing prices, but it provides a strong signal of market interest. On January 07, 2025, the IPO had been 688.21 times oversubscribed, indicating strong enthusiasm in the market.

IPO Allotment Process:

The allotment date for the Fabtech Technologies Cleanrooms IPO is scheduled for January 08, 2025. Investors can check the allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID. This allows applicants to quickly confirm their IPO allotment.

Objectives of the IPO:

The funds raised through the IPO will be used for:

1. ₹1,400.00 lakh to meet the company’s long-term working capital requirements.
2. ₹550.00 lakh will be allocated for the proposed acquisition of equity shares in Kelvin Air Conditioning and Ventilation Systems Private Limited.
3. The remaining funds will be used for general corporate purposes, which could include expansion, R&D, or debt repayment.

Financial Performance and Valuation Metrics:

For the period ending September 30, 2024, Fabtech Cleanrooms reported revenues of ₹6,222.89 lakh, with a Profit After Tax (PAT) of ₹540.18 lakh. The EBITDA for the same period was ₹754.41 lakh, showcasing a solid performance, though slightly lower than previous years due to industry-wide fluctuations.

Key metrics for the Fabtech Technologies Cleanrooms IPO include:

• A pre-issue EPS of ₹6.92 and a post-issue EPS of ₹4.70 for FY24.
• A pre-issue P/E ratio of 12.28x, and a post-issue P/E ratio of 18.10x.
• ROCE (Return on Capital Employed) for FY24 is 15.83%, indicating strong returns on capital.
• The ROE (Return on Equity) is 11.96%, while the RoNW (Return on Net Worth) is 19.40%, suggesting a stable and profitable company with efficient use of capital.

These metrics suggest that the IPO is fairly priced and provides an opportunity for potential listing gains, supported by the 76.77% GMP and the company's consistent growth.

IPO Investment Recommendation:

Given the strong financial fundamentals, 76.77% GMP, and the 688.21 times oversubscription rate, Fabtech Technologies Cleanrooms IPO presents a compelling opportunity for investors looking for listing gains. Additionally, the company’s focus on cleanroom technology and HVAC systems in pharmaceutical and industrial applications makes it well-positioned for future growth.

We recommend applying for the Fabtech Technologies Cleanrooms IPO, as it is priced attractively based on the financials, market performance, and the expected strong listing gains.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.

The Current active IPO are   Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal, Fabtech Technologies.

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