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Fabtech Technologies Files Draft Papers With SEBI To Raise Funds Via IPO

The company may raise up to Rs 10 crore through the pre-IPO round. If such placement is completed, the fresh issue size will be reduced.

Fabtech Technologies -- a turnkey engineering solutions provider for the pharmaceuticals, biotech and healthcare industry -- has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering.

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The Mumbai-based company's proposed initial public offering (IPO) is entirely a fresh issue of up to 1.20 crore equity shares. The offer also includes a reservation for a subscription by eligible employees, according to the draft red herring prospectus (DRHP).

The company may raise up to Rs 10 crore through the pre-IPO round. If such placement is completed, the fresh issue size will be reduced.

Proceeds from the IPO to the extent of Rs 120 crore will be used for funding the working capital requirements of the company, and Rs 30 crore for pursuing inorganic growth initiatives through acquisitions, and general corporate purposes.

Fabtech Technologies, part of the Fabtech Group was incorporated as Globeroute Ventures Private Ltd. The company demerged from the group company in 2021 to achieve operational efficiencies.

Fabtech Technologies offers comprehensive start-to-finish solutions encompassing designing, engineering, procurement, installation and testing of select pharmaceutical equipment for a wide range of customers.

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Till June 2024, the company completed 35 projects across countries, including Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka, United Arab Emirates. As of June this year, Fabtech Technologies had an order book aggregating Rs 726.15 crore.

Fabtech Technologies' consolidated revenue from operations rose 16.7 per cent to Rs 226.13 crore in Fiscal 2024 from Rs 193.80 crore in Fiscal 2023. Its profit after tax surged 25.23 per cent to Rs 27.21 crore in Fiscal 2024 from Rs 21.73 crore in Fiscal 2023.

Unistone Capital is the sole book-running lead manager to the issue.

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