Fabtech Technologies IPO Review: Dates, Price Band, Objectives, Risks & More

Fabtech Technologies, a leading turnkey engineering solutions provider for the pharma, biotech, and healthcare sectors, is hitting Dalal Street with a ₹230.35 crore IPO. The issue will open from September 29 to October 1, 2025, in a price band of ₹181–₹191 per share, with a lot size of 75 shares (₹14,325 minimum investment). Unlike many recent IPOs, this one is a 100% Fresh Issue, meaning all proceeds will go directly to the company for growth and expansion. The GMP is ₹35 per share, indicating about 18% listing gains. This suggests steady investor sentiment and healthy demand for the issue.

Let’s break down the IPO dates, price band, financials, strengths, risks, and what investors should consider before applying.

IPO Overview

• IPO Date: September 29 to October 1, 2025
• Total Issue Size: ₹230.35 crore (entirely Fresh Issue)
• Price Band: ₹181 to ₹191 per share
• Lot Size: 75 shares (₹14,325 minimum investment)
• Tentative Allotment Date: October 3, 2025
• Tentative Listing Date: October 7, 2025
• Exchange: BSE

No Offer-for-Sale (OFS). Every rupee raised will go into the company’s expansion and working capital.

How Does Fabtech Technologies Make Money?

Fabtech specializes in turnkey engineering solutions for pharmaceutical and biotech facilities. This includes design, procurement, installation, testing, and commissioning of projects that meet strict global standards.

• In FY24, turnkey projects contributed 87% of revenue, while standalone services like equipment supply and installation made up 13%.
• By FY25, turnkey’s share dropped to 76%, and standalone services grew to 24%, indicating a more diversified revenue mix.

The company operates in over 62 countries, including India, GCC, MENA, and ECO regions, which are major pharmaceutical hubs.

Objectives of the IPO

From the ₹230.35 crore raised:

• ₹127 crore: Working capital needs (Fabtech’s business is highly working-capital intensive).
• ₹30 crore: Acquisitions and partnerships (expand manufacturing & global footprint).
• Balance: General corporate purposes such as marketing, salaries, and tech upgrades (capped at 25–35% of proceeds as per SEBI).

Financial Performance

• Revenue: Strong growth from ₹200 crore to ₹336 crore in 3 years.
• Profitability: Net profit doubled to ₹46.5 crore, with PAT margin rising from 10.9% (FY23) to 13.8% (FY25).
• Margins: EBITDA margin slipped from 17.2% (FY24) to 14.1% (FY25), showing some cost pressures.

Strengths

• Strong 30% CAGR revenue growth with improving PAT margins.
• Order book of ₹9,044 crore as of July 2025, providing strong revenue visibility.
• Integrated, asset-light model leveraging related parties and suppliers.
• Global reach: 62+ countries, with expertise across pharma dosage forms.
• Proven execution in regulated, complex markets like GCC, MENA, ECO.

Risks

• Working capital stress: 195 working capital days; ₹849 crore receivables overdue by 6+ months.
• Order book concentration: Top 5 projects have 62% of FY25 revenues; delays of ₹1,349 crore already reported.
• Industry dependence: 74% revenue from pharma/biotech sector; cyclical capex risks.
• Geopolitical exposure: Heavy reliance on GCC/MENA markets.
• Supplier risk: No long-term contracts with equipment vendors → exposure to cost spikes and delays.
• High contingent liabilities: Over ₹3,100 crore in guarantees.

Promoters & Shareholding

• Promoter Holding (Pre-IPO): 94.61%
• Public Holding: 5.39%

Industry Outlook

The global pharmaceuticals market, worth ~$1.6 trillion in 2024, is projected to touch $2.1–2.2 trillion by 2029, growing at a 5.5–6.5% CAGR. This is driving a sharp rise in pharma capex, estimated at $500–550 billion over 2025–2029, with India’s domestic pharma market also growing at 8–9% CAGR and capex expected to rise 1.5x by 2030.

That said, the turnkey pharma engineering space is exposed to regulatory changes, geopolitical risks, and project execution challenges. Players with strong execution, local presence in emerging markets, and efficient capital use are best positioned to benefit.

IPO Valuation

At the upper price band of ₹103, the company’s market capitalization stands at around ₹334 crore pre-IPO and expands to about ₹458 crore post-IPO. Adjusting for borrowings of ₹55 crore and cash of ₹35 crore, the enterprise value translates to an EV/Revenue multiple of 1.08x pre-IPO and 1.46x post-IPO, based on FY25 projected revenue of ₹327 crore. 

On the profitability side, the issue is valued at a reasonable price-to-earnings (P/E) ratio of 7.2x pre-IPO, which rises to 9.9x post-IPO, indicating modest valuation levels.

How to Apply for Fabtech IPO on INDmoney

1. Download the INDmoney app and complete KYC.
2. Go to INDstocks → IPO or search “Fabtech Technologies IPO.”
3. Check IPO details (price band, lot size, dates).
4. Tap Apply Now and select no. of lots.
5. Use INDpay UPI for instant mandate approval.
6. Funds stay blocked until allotment is finalized.

Disclaimer

Source: Fabtech Technologies's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.