Fabtech Technologies Cleanrooms IPO: 700x Subscription; GMP Soars 117%

The initial public offering of Fabtech Technologies Cleanrooms concluded it's 3-day subscription period on Jan. 3 on Jan. 7. The SME issue was booked over 740 times on Tuesday led by strong demand from Non-Institutional investors.

The grey market premium for Fabtech Technologies Cleanrooms IPO reached a new high as public issue garnered significant investor attention. The GMP trends showed consistent rise after the SME issue was fully booked on Day 1 and climbed to an all-time high as the bidding for the IPO entered its final few hours.

Here's all you need to know about Fabtech Technologies Cleanrooms IPO. 

The Fabtech Technologies Cleanrooms IPO is entirely a fresh issue of 32.64 lakh shares aggregating to Rs 24.74 crore with no offer-for-sale component.

Fabtech Technologies IPO price band has been set between Rs 80 and 85 per share. Retail investors are required to apply for a minimum of 1,600 shares in one lot, taking the investment amount to Rs 1,36,000 for a single lot application.

Of the offers 32,64,000 shares offered -- 6,19,200 (18.97%) is reserved for qualified institutional buyers, 4,65,600 (14.26%) for non-institutional investors, 10,86,400 (33.28%) for retail investors and 9,28,000 (28.43%) for Anchor investors.

Maashitla Securities Pvt. is the registrar for the Fabtech Technologies IPO, while Vivro Financial Services Pvt. has been appointed as its book-running lead manager. Rikhav Securities Ltd. is the market maker for this SME IPO. 

The IPO was subscribed 740.37 times on Tuesday

• Qualified Institutions: 224.5 times

• Non-Institutional Buyers: 1485.52 times

• Retail Investors: 715.05 times

The subscription status will be updated at regular intervals.

The grey market premium of Fabtech Technologies IPO was Rs 100 as of 6:29 p.m. on Jan. 7, according to InvestorGain. This projects a listing gain of 117.65%. Shares of Fabtech Technologies are anticipated to list at Rs 185 at the upper end of the price band.

The GMP trends have shown upward movement since the SME issue opened for subscription on Jan. 3. The GMP for Fabtech Technologies IPO was Rs 50 on Jan. 2 before jumping to Rs 75 on Jan. 3.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Against the issue price of Rs 85 per share.

The allotment for the Fabtech Technologies Cleanrooms IPO is likely to be done on Wednesday, Jan. 8, with successful bidders getting their credit of shares to Demat accounts on Jan. 9. Refunds will be initiated to non-allottees on the same day.

Fabtech Technologies IPO will list on BSE SME with a tentative listing date fixed as Friday, January 10.

The IPO was subscribed 170.85 times on Monday

• Qualified Institutions: 7.48 times

• Non-Institutional Buyers: 172.09 times

• Retail Investors: 263.43 times

Fabtech Technologies Cleanrooms Ltd. works in the pharma, biotech and healthcare sectors, making re-engineered and prefabricated modular panels and doors for building cleanrooms for the industries.

The company’s product portfolio includes cleanroom panels, view panels, doors, ceiling panels, covings, HVAC systems, and electrification works. It has a 70,000 sqft manufacturing facility in Umbergaon, Valsad, Gujarat.

The company will use a portion of the IPO proceeds to fund its proposed acquisition of Kelvin Air Conditioning and Ventilation Systems Pvt. The money raised via the IPO will further go towards long-term working capital needs and general corporate purposes.

Fabtech Technologies Cleanrooms Ltd. reported a revenue of Rs 62.22 crore and a net profit of Rs 5.4 crore for the period ended Sept. 30, 2024. In FY24, its revenue declined by 22% to Rs 98 crore from Rs 125.10 crore in FY23. The net profit during this period decreased 27% year-on-year to Rs 5.78 crore from Rs 7.96 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.