Fabtech Technologies IPO Day 3: Issue booked 2.03x. Check GMP, subscription status, review. Apply or not?

Fabtech Technologies IPO subscription status is 2.03x on day 3. The retail portion was subscribed 2.08x, and NII portion has been booked 1.97 times, Qualified Institutional Buyers (QIBs) portion received 2.02 times bids. Employee portion subscribed 2.01 times.

The company has received bids for 2,45,22,750 shares against 1,20,60,000 shares on offer, at 19:00 IST, according to data on BSE.

The initial public offering of Fabtech Technologies Ltd, which provides turnkey engineering solutions for the pharmaceuticals, biotech, and healthcare sectors, was completely subscribed by the second day of the share sale on Tuesday. The ₹230-crore IPO attracted bids for 1,21,11,225 shares compared to the 1,20,60,000 shares available, according to NSE data.

Among the different categories of investors, the portion for Retail Individual Investors (RIIs) experienced 1.20 times subscription, while the Qualified Institutional Buyers (QIBs) segment saw a subscription rate of 94%, and the non-institutional investors' share was subscribed at 76%.

Fabtech Technologies IPO price band has been fixed in the range of ₹181-191 per share for its ₹230-crore initial public offering (IPO). The Mumbai-based company opened for public subscription on September 29 and will conclude on October 1.

Fabtech Technologies provides all-encompassing solutions from beginning to end, which include designing, engineering, procuring, installing, and testing specific pharmaceutical equipment for various clients.

As of June 2024, the company has successfully finished 35 projects in multiple countries, such as Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka, and the UAE.

Fabtech Technologies IPO GMP today

Fabtech Technologies IPO GMP is ₹0, which meant shares were trading at their issue price of ₹191 with no premium or discount in the grey market, according to investorgain.com.

Considering the grey market activities from the last eight sessions, today's IPO GMP is trending downward and is anticipated to decrease further. The minimum GMP recorded is ₹0.00, while the maximum GMP stands at ₹35, as per experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Fabtech Technologies IPO Review

SBICAP Securities indicates that the robust and varied order book offers good revenue visibility in the short term. Nonetheless, the low rates of proposal conversions and reliance on third-party procurement pose significant risks. At the upper end of the price range of ₹191, the issue is assessed at a P/E ratio of 29.7x and an EV/EBITDA ratio of 16.9x based on post-issue capital.

From FY23 to FY25, the company has shown a CAGR of 29.8% in Revenue, 29.1% in EBITDA, 46.2% in PAT, and 14.7% in Adj. PAT. The brokerage perceives the company as being fairly valued, and they recommend a Neutral rating for the issue.

BP Equities mentioned that the company's order book offers strong revenue visibility for the upcoming years, lessening the need for new client acquisitions in the near term. At the maximum price point of ₹191, the company is valued at a P/E ratio of 13.3 times FY25 earnings. Therefore, they advise a "SUBSCRIBE" rating for this offering.

Fabtech Technologies IPO details

Fabtech Technologies IPO of the company consists of a new issue of as many as 1.2 crore equity shares valued at ₹230 crore based on the highest end of the price range.

The funds raised from the IPO will be allocated towards meeting the company's working capital needs, exploring growth opportunities through acquisitions, and other corporate uses.

Unistone Capital serves as the exclusive book-running lead manager for this issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.