Is Fabtech Technologies IPO Good or Bad – Detailed Review

Fabtech Technologies Limited's IPO is set to open its initial public offering from September 29, 2025, to October 01, 2025. When considering applying for this IPO, potential investors might have questions about whether the Fabtech Technologies IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive Fabtech Technologies IPO review, covering its business operations and fundamental analysis to help you make an informed investment decision.

Fabtech Technologies IPO Review

Fabtech Technologies Limited is an Indian company that provides integrated, end-to-end turnkey engineering solutions for the pharmaceutical, biotech, and healthcare industries globally. The company focuses on three main verticals, namely Bio Clean Air, Clean Water, and Process solutions. It operates on an asset-light model, leveraging related entities and third-party suppliers, and has a strong international presence, having completed projects in over 62 countries.

The IPO is a fresh issue of 1,20,60,000 shares, aggregating to Rs 230.35 crore. The price band is set at Rs 181 to Rs 191 per share, with a lot size of 75 shares. The IPO will be open from September 29, 2025, to October 1, 2025, with an expected listing date on the NSE and BSE on October 7, 2025. The company plans to use the net proceeds for funding working capital requirements (Rs 127 crore), pursuing inorganic growth initiatives through acquisitions (Rs 30 crore), and for general corporate purposes.

Financially, the company has shown a strong growth trajectory. Revenue from operations increased from Rs 193.80 crore in Fiscal 2023 to Rs 326.67 crore in Fiscal 2025. Profit after tax (PAT) also saw a significant increase from Rs 21.73 crore to Rs 46.45 crore over the same period. The company's EBITDA and PAT margins have also shown an upward trend, though with some volatility. The debt-to-equity ratio was 0.32 in Fiscal 2025.

Key strengths of Fabtech Technologies include its position as a turnkey solutions provider, its asset-light business model, a proprietary digital project management platform, and a demonstrated track record of global project execution. As of Fiscal 2025, the company had a healthy order book of Rs 761.73 crores. However, the company is exposed to several risks, including a high customer concentration (top five customers contributing 56.06% of revenue in Fiscal 2025), working capital intensity, and vulnerability to geopolitical and foreign exchange risks due to its international operations. The company also faces risks from fixed-price contracts and its reliance on related entities for equipment.

Company Overview of Fabtech Technologies IPO

Fabtech Technologies Limited, a global company headquartered in India, specializes in providing end-to-end turnkey engineering solutions for the pharmaceutical, biotech, and healthcare industries. The company builds infrastructure that is compliant with global regulatory standards, focusing on key elements such as bio clean air, clean water, and process solutions. This integrated approach encompasses everything from design and engineering to procurement, installation, and certification of pharmaceutical equipment and facilities. The company also offers these services on a standalone basis for both new (greenfield) and existing (brownfield) projects.

The company's core business revolves around three main solution verticals:

• Bio Clean Air: Provides essential systems for maintaining sterile environments in pharmaceutical manufacturing, including cleanroom panels, air ventilation systems, and containment solutions like isolators.

• Clean Water: Offers solutions for generating high-purity water, which is critical for drug formulation and equipment cleaning. This includes water for injection (WFI) generation and purified water storage and distribution systems.

• Process: Supplies a wide range of custom-designed process equipment for manufacturing various dosage forms, such as liquids, solids, and semi-solids.

Fabtech Technologies has a strong international presence, having executed projects in over 62 countries across regions, including the Middle East, Africa, Asia, Europe, Latin America, and North America. As of July 31, 2025, the company has completed 51 projects in countries such as Saudi Arabia, Egypt, Algeria, Bangladesh, Ethiopia, Sri Lanka, and the United Arab Emirates.

The company's business model operates under an asset-light model, relying on a network of related entities and third-party suppliers for equipment, which allows it to focus on project execution and maintain cost control. As of Fiscal 2025, the order book stood at Rs 761.73 crores.

According to the financial data for Fiscal 2025, the company's consolidated revenue from operations was Rs 326.66 crores. The company's reportable segment is the supply of pharmaceutical equipment and machinery, from which all its revenue is derived. Nearly half of the revenues come from the regions of the Gulf Cooperation Council (GCC), followed by the Economic Cooperation Organisation (ECO), South East Asia (SEA), Middle East and North Africa (MENA), Europe, and America for the Fiscal 2025.

Industry Overview of Fabtech Technologies IPO

Fabtech Technologies Limited is a turnkey engineering solutions provider with a strong focus on the global pharmaceutical, biotech, and healthcare sectors. The company's business model is centered on providing end-to-end solutions, from design and engineering to installation and commissioning, for aseptic manufacturing facilities. This approach is highly relevant in an industry with stringent regulatory standards, where the efficient execution of capital expenditure projects is critical for success.

The global pharmaceutical market is a key driver for the company's business. The industry is projected to experience steady growth with a compound annual growth rate (CAGR) of 5.5-6.5% from 2024 to 2029. This growth is fuelled by several factors, including:

• Global Pharmaceutical Capex: Capital expenditure (CAPEX) in the global pharmaceutical industry is expected to increase by approximately 1.3 times from the $370 billion to $420 billion spent between 2020 and 2024, reaching $500 billion to $550 billion from 2025 to 2029.

• Growing Demand: The demand for pharmaceuticals is driven by an aging global population and a rising prevalence of chronic and non-communicable diseases.

• Government Initiatives: Governments in emerging economies, particularly in the Middle East and Africa (MEA), are increasingly focusing on local manufacturing of pharmaceuticals to achieve self-reliance and reduce import dependency.

The Indian pharmaceutical industry, where Fabtech is headquartered, is a significant market, ranking as the world’s third-largest by volume. This domestic market is expected to grow at a CAGR of 8-9% from Fiscal 2025 to Fiscal 2030. Pharmaceutical Capex in India is also projected to increase approximately 1.5 times over the fiscal years 2026-2030 compared to the previous five-year period.

The company's performance is tied to its ability to secure projects and navigate the complexities of international operations. Its top five customers contributed 56.06% of its total revenue from operations in Fiscal 2025. 

Financial Overview of Fabtech Technologies IPO

The financial performance of Fabtech Technologies over the three fiscal years ending March 31, 2023, 2024, and 2025 demonstrates a trajectory of strong growth, enhanced profitability, and strategic shifts in capital structure.

Revenue from Operations shows a robust upward trend, increasing from Rs 193.80 crore in Fiscal 2023 to Rs 226.14 crore in Fiscal 2024, and then significantly to Rs 326.67 crore in Fiscal 2025. This substantial growth, particularly the 44.46% surge between Fiscal 2024 and 2025, is primarily attributed to strategic inorganic growth initiatives, including taking on project execution from new and acquired subsidiaries.

EBITDA and its corresponding margin highlight operational efficiency, though with some volatility. EBITDA increased consistently from Rs 32.38 crore in Fiscal 2023 to Rs 39.75 crore in Fiscal 2024, and further to Rs 47.28 crore in Fiscal 2025. However, the EBITDA margin initially rose from 16.20% in Fiscal 2023 to 17.24% in Fiscal 2024 before declining to 14.07% in Fiscal 2025. This recent decline suggests margin compression, linked by the company to increased operational costs such as Project erection and commissioning expenses and Freight and forwarding expenses associated with scaling its international project execution.

Profit After Tax (PAT) has shown consistent and strong growth. The company's net profit increased from Rs 21.73 crore in Fiscal 2023 to Rs 27.22 crore in Fiscal 2024, and then sharply to Rs 46.45 crore in Fiscal 2025. The PAT margin also saw a notable upward trend, increasing from 10.87% in Fiscal 2023 to 11.80% in Fiscal 2024, and further rising to 13.83% in Fiscal 2025. The particularly strong jump in PAT in Fiscal 2025 was influenced by the Profit on sales of Unlisted shares (TSA Process Equipment Private Limited - Associate Company) recorded as an exceptional item.

The company's return metrics demonstrate fluctuating but generally strong performance. Return on Equity (RoE) stood at 27.80% in Fiscal 2023, dipped slightly to 24.65% in Fiscal 2024, before increasing significantly to 30.46% in Fiscal 2025, reflecting enhanced returns on shareholder funds. Conversely, Return on Capital Employed (RoCE) shows a slight downward trend, declining from 29.35% in Fiscal 2023 to 28.76% in Fiscal 2024, and further to 24.46% in Fiscal 2025.

Financially, the company's Debt-Equity Ratio has fluctuated, dropping significantly from 0.39 in Fiscal 2023 to a minimal 0.07 in Fiscal 2024, before rising back to 0.32 in Fiscal 2025. The increase in 2025 suggests a moderate and calculated rise in leverage.

Overall, the financial performance of Fabtech Technologies reflects a company with significant top-line and bottom-line growth, backed by high returns, though effective cost management remains key to maintaining operational efficiency as it scales.

Strengths and Risks of Fabtech Technologies IPO

Let's delve into the strengths and weaknesses to assess if the Fabtech Technologies IPO is good or bad for investors.

Strengths

• Integrated, end-to-end turnkey solutions: The company is a premier transnational pharmaceutical engineering provider offering design-to-validation (turnkey) solutions across three key elements, namely bio clean air, clean water, and process systems. This comprehensive scope, spanning from disease profiling to final commissioning, streamlines project execution for global clients.

• Asset-light business model with integrated supply: Fabtech operates on a capital-efficient model, sourcing a significant portion of specialized equipment from related entities such as Associates or Group Companies. This strategy minimizes manufacturing Capex, improves cost and quality control, and ensures a reliable supply chain.

• Proprietary digital project management platform: The company utilizes its in-house software, 'FabAssure', to digitalize and automate the project lifecycle. This platform facilitates real-time monitoring, efficient risk assessment, faster problem resolution, and improved transparency for international clients, driving operational efficiency.

• Global project execution expertise in challenging geographies: The company has a demonstrated track record of executing over 51 projects since its inception in more than 62 countries, with a significant presence in emerging economies (GCC, MENA, ECO). This experience allows it to navigate complex logistics, regulatory environments, and resource mobilization challenges effectively.

• Track record of growth and diverse dosage form execution: Fabtech has successfully executed turnkey pharmaceutical projects across a diverse range of dosage forms (liquids, solids, and semi-solids), indicating deep technical competency. This expertise enables them to secure a strong and growing order book, which reached Rs 761.73 crores in Fiscal 2025.

Risks

• High dependence on a limited number of customers: A few key projects and customers account for a significant portion of the company's revenue, making the business highly vulnerable to delays, scope reduction, or cancellation of any single major contract.

• Exposure to working capital intensity and collection risk: The business has high working capital requirements due to long project execution cycles, advances paid to suppliers, and retention money (typically 10% of contract value) held by customers until the warranty period expires. This increases the risk of delayed collection of receivables.

• Vulnerability of fixed-price contracts: The majority of the company’s contracts are fixed-price in nature. This exposes the company to risks from unforeseen cost increases in equipment, materials, or labor during project execution, which cannot be passed on to customers and may erode profit margins.

• Reliance on related entities for major equipment: Significant procurement is channeled through Associates and Group Companies. While beneficial for quality control, this dependency poses risks if supply issues arise or if potential conflicts of interest emerge regarding the allocation of new business opportunities within the group structure.

• Geopolitical and foreign exchange risks: A substantial portion of revenue and projects is concentrated in politically and economically volatile regions (GCC, MENA, ECO). This exposes the company to increased risks from political instability, unfavorable foreign currency exchange rate fluctuations, and complex regulatory environments.

Strategies of Fabtech Technologies IPO 

• Pursuing inorganic growth through strategic acquisitions: The company plans to use IPO proceeds of Rs 30 crores to acquire minority stakes in 4-5 target manufacturing companies in key geographies (India, UAE, Saudi Arabia, Egypt). This aims to set up indirect manufacturing capabilities locally, reduce logistical costs, and improve margins.

• Expanding presence and establishing local execution through partnerships: Fabtech intends to deepen market penetration in core regions (GCC, MENA) by leveraging its existing subsidiary, FTS Cleanrooms Systems LLC, and forming new joint ventures with local partners to enhance local execution and project turnaround times.

• Targeting government clientele in African and emerging markets: A core strategy is to increase market share by actively bidding for and securing government tenders in African nations and other emerging economies, where there is a strong focus on building indigenous pharmaceutical and healthcare infrastructure.

• Funding working capital requirements for increased execution scale: A primary use of the IPO proceeds of Rs 127 crores is to shore up working capital. This is necessary to support a larger, growing order book, bridge the liquidity gap caused by extended payment cycles, and secure bank guarantees.

• Diversification of customer base into allied non-pharma sectors: The company aims to expand its customer base beyond pharmaceuticals and biotech into related sectors such as nutraceuticals and other high-compliance, Good Manufacturing Practice (GMP) certified FMCG industries to mitigate sectoral concentration risk.

Fabtech Technologies IPO vs. Peers

Currently, there are no listed Indian companies available for direct peer comparison on the stock exchanges. However, the company operates in a competitive landscape alongside players such as Azbil (Telstar), Exyte GmbH, Hvax Technologies Limited, Airtech Systems (India) Private Limited, Integrated Cleanroom Technologies Private Limited, Nicomac Taikisha Clean Rooms Private Limited, Lotus Technicals Private Limited, and Pharma Access Private Limited. These firms offer similar pharmaceutical turnkey engineering solutions and cater to overlapping market segments.

Objectives of Fabtech Technologies IPO

Fabtech Technologies is planning to do fresh issues valued at around Rs 230.35 crores, which will be utilised for the proceedings, out of which the net proceeds to be allocated for:

• Funding the working capital requirements of the company, worth Rs 127 crores.

• To pursue inorganic growth initiatives through the acquisition and allocation stood at Rs 30 crores.

• General Corporate Purposes.

Fabtech Technologies IPO Details

IPO Dates

Fabtech Technologies IPO will be open for subscription from September 29, 2025, to October 01, 2025. The allotment of shares to investors will take place on October 03, 2025, and the company is expected to be listed on the NSE and BSE on October 07, 2025.

IPO Issue Price

Fabtech Technologies is offering its shares in the price band of Rs 181 to Rs 191 per share. This means you would require an investment of Rs. 14,325 per lot (75 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Fabtech Technologies is planning to fresh issue shares totalling 1,20,60,000 shares, which are worth Rs 230.35 crores.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on October 03, 2025, through the registrar's website, Bigshare Services Private Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Fabtech Technologies will be listed on the NSE and BSE on October 07, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

Apply for Fabtech Technologies IPO

FAQs:

Q1: What is the issue size of Fabtech Technologies Limited's IPO?

The total issue size is Rs 230.35 crore, which is a total fresh issue of 1,20,60,000 shares.

Q2: What’s the minimum investment for Fabtech Technologies IPO?

75 shares per lot, requiring Rs 14,325 (at upper band).

Q3: How does Fabtech Technologies compare to peers?

Fabtech Technologies has no listed company peers for comparison. However, there are some unlisted players like Azbil (Telstar), Exyte GmbH, Hvax Technologies, Airtech Systems (India), Integrated Cleanroom Technologies, and others.

Q4: Who is managing Fabtech Technologies IPO?

Unistone Capital Private Limited is the book-running lead manager for the IPO. 

Q5: What are Fabtech Technologies latest financials and EBITDA trends?

Fabtech Technologies latest financials for Fiscal 2025 show a revenue of Rs 326.67 crores, and EBITDA reached Rs 47.28 crores with a 14.07% margin and a profit after tax of Rs 46.45 crores in Fiscal 2025.