Welcome to the ₹849 crore IPO parade where Fabtech Technologies Ltd. shows up with sterilized balance sheets, neatly scrubbed EBITDA, and a ₹230.3 crore fresh issue. No OFS drama here, just fresh capital injection — rare sight in today’s promoter exit mela. IPO band: ₹181–191, retail ticket size: ₹14,325 for 75 shares. FY25 revenue clocked ₹336 crore (+46% YoY) with PAT at ₹46.4 crore (+71% YoY). PAT margin? A sweet 13.8%. ROE? A cool 30.5%. For a biopharma engineering company born in 2018, these numbers look like the startup equivalent of Virat Kohli scoring a century on debut.
2. Introduction
Fabtech isn’t your average logistics-truck IPO. These folks design cleanrooms, modular labs, purified water plants, and HVAC systems that pharma/biotech companies literally can’t survive without. Basically: they don’t move your goods; they build the sterile labs where drugs are made so you don’t die from bacteria.
Incorporated in 2018, they’ve grown like college kids on Red Bull — from ₹200 crore revenue in FY23 to ₹336 crore in FY25. Their margins are better than many pharma manufacturers themselves, despite being an engineering project company. IPO timing is chef’s kiss — with global pharma capex rising, India being “pharmacy of the world,” and every country post-COVID wanting its own vials and vaccines.
But here’s the spicy twist: the IPO’s Objects of the Issue statement lists “Funding working capital ₹1,270 crore” — clearly a typo. Either Fabtech is raising ₹230 crore and dreaming of spending ₹1,270 crore (multiverse accounting), or someone cut-paste wrong line. If this is how they handle prospectus drafting, god save the cleanrooms.
3. Business Model – WTF Do They Even Do?
Fabtech calls itself a biopharma engineering turnkey solutions provider. Translation:
Cleanroom Facilities: Dust-free labs where pharma cos. can make tablets/injections without also manufacturing cockroaches.
Clean Water Solutions: From 500 to 50,000 LPH purified water systems. Because you can’t make life-saving drugs with Mumbai tap water.
Clean Air Solutions: HVAC, sterile ventilation for life sciences, semiconductors, food, and even aerospace. Basically, they’re selling expensive, overqualified air conditioners.
End-to-End Execution: Design → Engineering → Manufacturing → Installation → Project Management. Clients just cut the cheque, Fabtech delivers the sterile Lego set.
Their edge? Global execution experience, diversified clients, and ability to serve every dosage form (tablet, injectable, biologics). Plus, in-house software for project management — desi Jugaad + Autodesk.
4. Financials Overview
Metric
FY25
FY24
FY23
YoY %
2Y %
Revenue
₹335.9 cr
₹230.4 cr
₹199.9 cr
+45.8%
+68%
EBITDA
₹47.3 cr
₹40.7 cr
₹34.9 cr
+16%
+36%
PAT
₹46.5 cr
₹27.2 cr
₹21.7 cr
+71%
+114%
EPS (₹)
14.34 (pre) / 10.45 (post)
8.41
7.11
+71%
+96%
Commentary: Revenue CAGR 30%+, PAT CAGR even higher. Margins steady at ~14%. These are not logistics-style wafer margins — these guys actually keep cash in pocket.
5. Valuation Discussion – Fair Value Range
(i) P/E Method:
Post-issue EPS = ₹10.45.
At ₹191, P/E = 18.3x. Peers like GMM Pfaudler, Praj Industries trade 20–30x. Fair range: 17x–23x → ₹178–₹240.
