Fabtech Technologies Cleanrooms IPO

Fabtech Technologies IPO will open for subscription on January 3rd, 2025. The IPO will close on January 7th , 2025. This is a small and medium enterprise (SME) IPO. Post the IPO, the stock will get listed on BSE SME platform. Issue size of the IPO is Rs 27.74 crore. Price band of the IPO is Rs 80 – 85 per share. Minimum bid lot size for retail investors is 1600 shares. Minimum investment required is Rs 1,36,000. Minimum bid lot size for HNI (High Net worth Individual) investors is 3200 shares. Minimum investment required for HNI investors is Rs 2,72,000. Listing date of the IPO is January 10th, 2025.

The Company

Fabtech is in the business of manufacturing pre-engineered and pre-fabricated modular panels and doors for building cleanrooms. Cleanrooms are areas that have controlled environment. This controlled environment is meant to achieve low level of pollutants, airborne microbes, dust etc. Cleanrooms are used in biotech, pharmaceutical and healthcare sectors. Products of Fabtech include wall panels, risers, doors, ceiling panels, air conditioning solutions etc.

Financial Performance

Net profit of the company in FY 22 was Rs 3.60 crore; in FY 23 it was Rs 7.96 crore; in FY 24 it was Rs 5.78 crore. Net profit margin of the company in FY 22 was 3.16%; in FY 23 it was 6.37%; in FY 24 it was 5.90%. Return on Equity (ROE) of the company in FY 22 was 10.10%; in FY 23 it was 19.27%; in FY 24 it was 11.95%. Return on Capital Employed (ROCE) of the company in FY 22 was 16.02%; in FY 23 it was 30.49%; in FY 24 it was 17.44%. Debt-to-equity ratio of the company in FY 22 was 0.23; in FY 23 it was 0.12; in FY 24 it was 0.11.

Valuation

Diluted Earnings per share (EPS) of the company in FY 22 was Rs 4.31; in FY 23 it was Rs 9.53; in FY 24 it was Rs 6.92. Average diluted EPS of the company in the three-year period was Rs 6.92. At this average EPS, price-to-earnings (P/E) ratio of the IPO, at the upper end of the IPO price band, comes to 12.28. About 32.56 lakh new shares will be issued as part of this IPO. Post the issuance of these new shares, the EPS of the company may get further diluted.

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