The listing was in line with grey market expectations, which had predicted a flattish debut despite strong subscription for the Rs 230-crore IPO. The grey market premium on the stock hovered at around 0% just ahead of the listing.
The Fabtech Technologies IPO was subscribed 2.04 times overall, driven by balanced participation — 2x in the retail category, 2x in QIBs, and 1.97x in non-institutional investors. While not a blockbuster subscription, analysts said the response reflects investor confidence in Fabtech’s growth story, even as near-term listing gains may be limited.
A steady performer in turnkey pharma engineering
Fabtech Technologies is a biopharma engineering company that designs and executes turnkey projects for pharmaceutical and biotech clients worldwide. It specialises in cleanroom facilities, HVAC systems, modular setups, and process equipment, serving as a one-stop solution provider for regulated sectors like life sciences and healthcare.
The company’s comprehensive service model, spanning design, manufacturing, installation, and maintenance, gives it an edge over smaller fragmented peers. Its growing expertise in clean air and clean water systems has positioned Fabtech as a trusted player among pharma and food-processing firms seeking integrated engineering support.
Financial strength and business outlook
Fabtech has delivered consistent growth over the past three years. Revenue rose 46% year-on-year in FY25 to Rs 335.94 crore, while net profit jumped 70% to Rs 46.33 crore, supported by higher margins and an expanding international client base.Also read: Subscribe for long-term or listing gains? Here’s what top 10 brokerages said on Tata Capital IPO
The company boasts a healthy EBITDA margin of 14.07% and a PAT margin of 13.83%, underscoring operational efficiency. Return ratios are strong, with ROE at 30.46% and ROCE at 24.46%, supported by a low debt-equity ratio of 0.32.
At the upper end of the issue price band (Rs 191), the IPO valued Fabtech at a post-issue P/E of 18.28x, which analysts described as fairly priced given its profitability and niche market positioning. The market cap post-issue stands at approximately Rs 849 crore.
Use of funds and growth drivers
Proceeds from the IPO will primarily go toward working capital needs (Rs 127 crore) and inorganic growth via acquisitions (Rs 30 crore). The company aims to strengthen its international presence, targeting growth in emerging markets across Africa, Southeast Asia, and the Middle East.
Management also plans to expand capabilities in biotech and clean-tech solutions, areas expected to see strong demand as global pharmaceutical production shifts toward higher-quality and regulatory-compliant facilities.
Long-term promise
Analysts say Fabtech’s fundamentals remain solid. Its strong order book, rising international exposure, and focus on capital-efficient expansion could make it a steady compounder post-listing, especially as healthcare infrastructure investment grows globally.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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