Fabtech Technologies is preparing for its initial public offering (IPO), set to open from January 3 to January 7, 2025. The company specializes in manufacturing cleanroom solutions, including pre-engineered and pre-fabricated modular panels and doors, catering primarily to the pharmaceutical, healthcare, and biotech sectors. With a total issue size of 32,64,000 shares, Fabtech aims to enhance its working capital and finance the acquisition of Kelvin Air Conditioning and Ventilation Systems.
₹76.5
₹85
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Expert Opinions
Market sentiment for the Fabtech Technologies IPO is cautiously optimistic, driven by increasing interest in the cleanroom solutions sector, particularly in pharmaceuticals and biotechnology. Company strengths include a robust portfolio of cleanroom infrastructure projects and a strong order book valued at ₹726.15 crore, reflecting solid demand for its specialized services.
However, risks and challenges include potential volatility in raw material prices and competition from established players in the cleanroom market. The valuation analysis indicates an issue size of up to 32,64,000 equity shares, with proceeds aimed at enhancing working capital and funding strategic acquisitions. From a long-term investment perspective, Fabtech Technologies is well-positioned to capitalize on the growing investments in healthcare infrastructure.
Investor Considerations
The Fabtech Technologies IPO, Company performance and fundamentals indicate a strong trajectory, with FY24 revenue reaching ₹226.13 crore, reflecting a 16.7% increase from the previous year, and a profit after tax of ₹27.21 crore, up 25.23%. The sector outlook is promising, driven by increasing demand for cleanroom solutions in pharmaceuticals and biotechnology, which are critical for maintaining hygiene standards.
The IPO valuation, The company reported an earnings per share (EPS) of ₹6.92 for FY24, which translates to a price-to-earnings (P/E) ratio of approximately 11.56 to 12.27 based on the IPO price range, indicating a potentially attractive valuation compared to industry standards. Growth prospects are bolstered by an order book valued at ₹726.15 crore and plans for geographic expansion. However, risk factors such as raw material price volatility and competition must be considered. A long-term investment horizon is advisable as Fabtech Technologies is positioned to capitalize on industry growth trends while navigating potential challenges effectively.
| Date | GMP | Trend |
|---|---|---|
| 09 Jan 2025 11.02 | ₹76.5 | --- |
| 08 Jan 2025 10.59 | ₹76.5 | Up |
| 07 Jan 2025 10.41 | ₹75 | --- |
| 06 Jan 2025 10.51 | ₹75 | --- |
| 05 Jan 2025 10.04 | ₹75 | --- |
| 04 Jan 2025 11.33 | ₹75 | Up |
| 03 Jan 2025 10.58 | ₹50 | Up |
| 02 Jan 2025 10.38 | ₹00 | --- |
| 01 Jan 2025 10.58 | ₹00 | --- |
| 31 Dec 2024 10.38 | ₹00 | --- |
| 30 Dec 2024 10.55 | ₹00 | --- |
| 29 Dec 2024 12.04 | ₹00 | --- |
| 28 Dec 2024 12.38 | ₹00 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Fabtech Technologies’ listing performance. The GMP of ₹76.50 predicted a premium of 90% over the issue price, and the stock delivered exactly the same gain of 90%. With zero prediction error, the GMP perfectly captured both the direction and magnitude of the listing gains, demonstrating exceptional precision in this case.
Fabtech Technologies IPO Current GMP is ₹76.5.
Fabtech Technologies IPO Expected Returns is 90.00%.
Fabtech Technologies IPO estimated listing price is ₹161.5.