Fabtech Technologies IPO Draws 70% Subscription on Day One
Fabtech Technologies Ltd., a leading provider of turnkey engineering solutions for the pharmaceutical and healthcare sectors, launched its Initial Public Offering (IPO) on September 29, 2025. The company aims to raise ₹230.35 crore through the issuance of 1.21 crore fresh equity shares, with a price band set between ₹181 and ₹191 per share.
On the first day of the subscription, the IPO received a 70% subscription rate, indicating a positive response from investors. The Qualified Institutional Buyers (QIBs) segment was subscribed to 77%, while Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs) were subscribed 70% and 46%, respectively.
The proceeds from this IPO are intended to fund working capital requirements, pursue inorganic growth initiatives through acquisitions, and for general corporate purposes.
About Fabtech Technologies
Fabtech Technologies Ltd. specializes in providing comprehensive engineering solutions for the pharmaceutical and healthcare industries. The company offers end-to-end services, including designing, engineering, procurement, installation, and testing of pharmaceutical equipment.
With a global presence, Fabtech has executed projects across various countries, adhering to stringent international compliance standards. As of July 31, 2025, the company employed 185 permanent staff members.
In FY25, Fabtech reported a revenue of ₹335.94 crore, marking a 46% year-on-year increase from ₹230.39 crore in FY24. The net profit for FY25 stood at ₹46.45 crore, reflecting a strong financial performance.
IPO Details
- Issue Size: ₹230.35 crore
- Price Band: ₹181 to ₹191 per share
- Lot Size: 75 shares
- Issue Type: Book-built issue
- Listing: Expected on BSE and NSE on October 7, 2025
Day One Performance
On the first day of the subscription, Fabtech Technologies’ IPO garnered a 70% subscription rate. The Qualified Institutional Buyers (QIBs) segment was subscribed to 77%, while Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs) were subscribed 70% and 46%, respectively.
The Grey Market Premium (GMP) for Fabtech Technologies shares was reported at ₹20 on the second day of bidding, indicating positive investor sentiment.
Investor Interest and Market Factors
The 70% subscription rate on the first day reflects moderate investor interest in Fabtech Technologies’ IPO. The positive GMP suggests that investors are optimistic about the company’s prospects. However, the varying subscription rates across different investor categories indicate a cautious approach among certain segments.
Market conditions and investor sentiment play a crucial role in the success of an IPO. Factors such as overall market performance, sector-specific trends, and macroeconomic indicators can influence investor decisions.
Risks and Considerations
Investors should consider the following risks before investing in Fabtech Technologies’ IPO:
- Market Volatility: Fluctuations in the stock market can impact the performance of newly listed companies.
- Sector-Specific Risks: The pharmaceutical and healthcare sectors are subject to regulatory changes and technological advancements.
- Company-Specific Risks: Factors such as project execution capabilities and financial health can affect the company’s performance.
It is advisable for investors to conduct thorough research and consult financial advisors before making investment decisions.
Future Outlook
Fabtech Technologies is well-positioned to capitalize on the growing demand for pharmaceutical and healthcare engineering solutions. The funds raised through the IPO will enable the company to enhance its working capital, pursue strategic acquisitions, and strengthen its market presence. The company’s strong financial performance, coupled with its expertise in the sector, provides a solid foundation for future growth and value creation for shareholders.
Conclusion
Fabtech Technologies’ IPO has received a positive response from investors, with a 70% subscription rate on the first day. The company’s strong financial performance and strategic plans for utilizing the IPO proceeds position it for continued growth in the pharmaceutical and healthcare engineering sectors.
Investors should monitor the remaining days of the subscription period and consider the company’s prospects before making investment decisions.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.
