Fabtech Technologies Cleanrooms IPO: This IPO for the SME sector has opened for investors from Friday, January 3. It will remain open for subscription for investors till Tuesday, January 7. The company will raise Rs 27.74 crore through this IPO. To raise this amount, it will issue 32.64 lakh shares to investors.

The price band for Fabtech Technologies Cleanrooms IPO has been fixed at Rs 80 to Rs 85 per share. Investors will get 1600 shares in one lot size, while bets can be placed on multiple lots during investment. Retail investors will have to invest at least Rs 1.36 lakh.

Highlights of IPO
 

• The IPO is entirely a fresh issue of Rs.27.74 crore consisting of 32.64 lakh shares.
• The price band has been fixed at ₹ 80 to ₹ 85 per share.
• Investors can apply in a lot size of 1600 shares. The minimum investment will be ₹1,36,000.

Funds raised from anchor investors
Ahead of the IPO opening, the company raised Rs 7.89 crore from anchor investors on Thursday.

Share listing dates
 

• After the IPO subscription closes, the share allotment process will take place on January 8.
• The company's shares may be listed on the BSE SME platform on January 10.

Purpose of IPO
 

• The company will use the funds raised from this issue for the following.
• Meeting long term working capital requirements.
• Buying equity shares of Kelvin Air Conditioning and Ventilation Systems Private Limited.
• Will be for general corporate purposes.

Subscription Status
The IPO recorded 19.86 times subscription on the first day itself
 

• Retail Share: Subscribed 33.88 times.
• NII Share: 13.54 times subscribed.
• QIB Shares: No subscription yet.

Grey Market Premium (GMP)
 

• Fabtech Technologies Cleanrooms shares are witnessing strong demand in the grey market.
• The current GMP is ₹50, which represents a premium of 59% over the issue price of ₹85.
• According to this, the shares can be listed at ₹ 135.

Company Introduction
Fabtech Technologies Cleanrooms provides pre-engineered and pre-fabricated modular panels and doors for cleanroom construction for the pharmaceutical, healthcare and biotech sectors, ranging from design to validation. Its manufacturing plant is spread over 70,000 sq. ft. at Umargaon, Valsad, Gujarat.

Key Customers
Unichem Laboratories Ltd, Desano Pharmaceuticals Private Limited and Apitoria Pharma Pvt Ltd (a subsidiary of Aurobindo Pharma) are its key customers.

Financial Position
The company's profit in FY24 declined 27% year-on-year to ₹5.78 crore and revenue declined 22% to ₹89.11 crore. This IPO could prove to be an attractive opportunity for investors, especially considering the strong premium to GMP.