Fabtech Technologies SME IPO: Here Are 10 Key Things to Know Before Investing
The Small and Medium Enterprises (SME) Issue of Fabtech Technologies is set to open for subscription today, marking a significant milestone in the company's journey. The IPO aims to raise Rs 28 crore through the sale of 32.6 lakh shares on the BSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.
IPO Size and Price Band: The size of the IPO is 32.6 lakh shares, priced between Rs 80-85 apiece. Investors can bid for 1600 shares in one lot.
GMP Value: The unlisted market value of Fabtech Technologies shares is Rs 50 per share, indicating a premium of 59% over the issue price.
Company Overview: Fabtech Technologies is engaged in the manufacturing and design-to-validation solutions of pre-engineered and prefabricated modular panels and doors for building cleanrooms serving pharmaceutical, healthcare, and biotechnology sectors.
Market Potential: The Indian cleanroom technologies market is expected to witness robust growth, valued at $277.4 million in 2023, with a projected reach of $484.2 million by 2030, growing at an CAGR of 8.3% from 2023 to 2030.
Financial Performance: For the period ended September 2024, Fabtech Technologies clocked total revenues of Rs 62.2 crore and net profit of Rs 5.4 crore.
Objectives of Offer: The funds raised through the IPO will be utilized for long-term working capital requirements, acquisition of equity shares of Kelvin Air Conditioning and Ventilation Systems, and general corporate purposes.
Float Information: About 50% of the offer is reserved for QIB investors, 35% for retail investors, and 15% for non-institutional investors.
Issuance Structure: The issuance of shares will be through a fresh equity sale, with a price band of Rs 80-85 per share.
Key Dates: The IPO is set to open on January 3, close on January 7, and the final allotment is likely to be made on January 8, with the company's shares expected to list on January 10.
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