Fabtech Technologies Ltd IPO

About Fabtech Technologies Limited IPO

Fabtech Technologies Limited IPO is an IPO aggregating up to 1,20,60,000 equity shares. It consists of a fresh issue of 1,20,60,000 equity shares. The shares will be allotted on a date that is yet TBA. The credit of shares to the Demat account and the initiation of refunds will also occur on dates that are yet TBA.

Objective of Fabtech Technologies Limited IPO

• Funding working capital requirements of the company.
• Pursuing inorganic growth initiatives through acquisitions.
• General Corporate Purpose

Industry Outlook

The global pharmaceuticals market has been driven by a number of factors, like the increase of chronic diseases (diabetes, cancer, and cardiovascular diseases); increased uptake of medicines owing to higher per capita income and awareness; wider spread and availability of health insurance; and population growth. Moreover, the pandemic has boosted the efforts in this space globally. The global pharmaceuticals market recorded a 4% CAGR, growing from approximately $1,20,000 crores in 2018 to around $1,49,400 crores in 2023.

The Indian pharmaceutical industry is the world’s third largest by volume and was valued at ₹360,000-380,000 crores (including bulk drugs and formulation exports) as of last fiscal. The industry can be broadly classified into formulations and bulk drugs. At present, low-value generic drugs constitute a large part of Indian exports. India accounts for ~3.5% of total drugs and medicines exported globally and exports pharmaceuticals to more than 200 countries and territories, including highly regulated markets such as the US, the UK, the European Union, and Canada. India has a complete ecosystem for the development and manufacturing of pharmaceuticals, with companies having state-of-the-art facilities and skilled/ technical manpower. Additionally, the country has several renowned pharmaceutical educational and research institutes and a robust ecosystem of allied industries.

Company Information

The company is a global company headquartered in India, specializing in turnkey engineering solutions for pharmaceuticals, biotech, and healthcare companies. They provide extensive technical expertise and infrastructure to deliver comprehensive solutions for establishing aseptic manufacturing facilities, encompassing everything from design to certification. Its footprint spans more than 62 countries globally and across regions like the Middle East, Africa, Asia, Europe, Latin America, North America, etc. (Source: CRISIL Report). The company builds pharmaceutical, biotech, and healthcare capabilities by offering comprehensive start-to-finish solutions encompassing designing, engineering, procurement, installation, and testing of select pharmaceutical equipment for a wide range of customers.

Risks of Fabtech Technologies Limited IPO

• Fabtech Technologies Limited derives a substantial portion of its revenue from a limited number of large projects. Any delay, modification, or cancellation of these projects due to factors beyond the company’s control, such as client budget constraints, regulatory changes, or economic slowdowns, could significantly impact its financial performance and cash flows. This reliance on a few key projects increases vulnerability to revenue volatility.

• The company’s operations are heavily concentrated in the GCC, MENA, and ECO regions, which are prone to political instability, economic fluctuations, and regulatory changes. Adverse developments in these regions, such as geopolitical tensions or economic downturns, could disrupt ongoing projects, delay payments, or reduce future orders, negatively affecting the company’s business and financial condition.

• Fabtech relies on third-party contractors for project execution. Any failure by these contractors to perform on time, meet quality standards, or comply with legal requirements could lead to project delays, cost overruns, or reputational damage. Such risks are beyond the company’s direct control and could adversely impact its ability to deliver projects as scheduled.

Anchor Investor bidding date:

The anchor investor bidding will take place one day before the IPO opens. The exact date is yet to be announced. IPO Registrar and Book Running Lead Manager:

Book running lead managers: Unistone Capital Private Limited Name of the Registrar: Bigshare Services Private Limited Business Model:

The company earns its revenue through:

• Delivering customised, aseptic manufacturing solutions across 62+ countries, focusing on emerging markets and complex project needs.
• The company provides end-to-end project execution, including design, procurement, installation, and testing of pharmaceutical equipment, ensuring seamless and customized solutions.
• Offering customised, project-specific solutions ensuring optimal resource use and successful implementation, driving revenue through comprehensive engineering and certification services.

Company Growth Trajectory:

Fabtech Technologies Limited has demonstrated consistent growth over the years, with its revenue stabilizing at ₹2,261.36 crores in FY24 after experiencing fluctuations in FY22 and FY23. This stability reflects the company’s resilience and ability to adapt to changing market conditions while maintaining operational efficiency. Further, during the fiscal 2024, fiscal 2023 and fiscal 2022, the company’s order book comprised thirty-six (36), thirty-eight (38) and eighteen (18), ongoing as well as completed turnkey projects, representing revenue from turnkey projects of 1,956.06 crores, 1,744.47 crores and 2,086.09 crores, respectively and constituting 86.50%, 90.01% and 81.11% of the total revenue, for the said fiscals, respectively. The company believes that as on June 30, 2024, they have a strong order book aggregating to 7,261.50 crores.

Company Market Position:

Fabtech Technologies Limited has solidified its market position with a strong order book of ₹7,261.50 crores as of June 30, 2024, reflecting its robust project pipeline and growth trajectory. The company has also established a global presence across 53 countries, serving 245 international customers since its inception. The company has successfully completed 35 turnkey projects across key regions, including Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka, and the UAE, demonstrating its expertise in executing large-scale pharmaceutical projects.

In addition to its project execution capabilities, Fabtech has built a strong and loyal customer base, with its top five customers contributing significantly to its revenue. In FY24, FY23, and FY22, these customers accounted for ₹1,433.37 crores, ₹1,453.00 crores, and ₹2,384.98 crores, respectively, representing 63.39%, 74.98%, and 92.74% of the company’s total revenue during these periods.

How to check Allotment Status of Fabtech Technologies Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Fabtech Technologies Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Link Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Fabtech Technologies Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status