Fabtech Technologies Cleanrooms shares hit 5% upper circuit after listing at 90% premium

Shares of small and medium enterprise (SME) Fabtech Technologies Cleanrooms Ltd made a spectacular trading debut on Friday, with the stock listing at a 90% premium on the BSE SME platform.

The Fabtech Technologies Cleanrooms stock opened the session at ₹161.5 apiece on the BSE compared to its initial public offering (IPO) price of ₹85 per share. Within minutes of the opening of the trade, the share price rallied further by 5% to hit the upper circuit at ₹169.57 apiece.

Within the first five minutes of trade, as many as 3.86 lakh shares were traded on the stock exchanges with the total turnover reaching ₹6.39 crore. The company’s market capitalisation stood at ₹208.9 crore.

Since the minimum bid quantity to apply for the Fabtech Technologies Cleanrooms IPO was 1,600 shares, successful bidders who were allotted at least a single lot of Fabtech Technologies shares in the primary issue managed to sit on listing gains of ₹1,22,400 (₹76.5x1,600).

Fabtech Technologies Cleanrooms IPO details

The ₹27.74-crore initial public offering of Fabtech Technologies Cleanrooms, which manufactures pre-engineered modular panels and doors, was open for subscription from January 3 to January 7. The issue had seen solid demand during the three-day bidding period, getting oversubscribed by more than 740 times.

The non-institutional investors’ (NIIs) portion was booked the most, with a subscription of a whopping 1,486 times. The retail portion was overbought 715 times, while the qualified institutional buyers’ (QIBs) category was subscribed 224 times.

Ahead of the launch of the IPO, Fabtech Technologies had also raised ₹7.89 crore via its anchor investor round. The company had allotted 9.28 lakh shares to seven fund schemes at a price of ₹85 per share.

According to the RHP, the company proposed to use the IPO proceeds for meeting long-term working capital needs. A portion of the IPO funds will also be used for the acquisition of shares in Kelvin Air Conditioning and Ventilation Systems Pvt. Ltd and for general corporate purposes.

Fabtech Technologies Cleanrooms offers end-to-end solutions for pre-engineered and pre-fabricated modular panels and doors used to build cleanrooms. Such modular panels are used for cleanrooms in pharmaceutical, healthcare and biotech companies. These rooms maintain a controlled environment with minimal pollutants, dust, airborne microbes and chemical vapours.

The company’s major clients include Unichem Laboratories Ltd, Apitoria Pharma Pvt Ltd, Hamdard Laboratories (India) and Desano Pharmaceuticals Pvt Ltd, among others. It has a manufacturing facility in Umbergaon, Valsad, Gujarat.

For the financial year 2023-24, Fabtech Technologies’ revenue dropped 22% to ₹98 crore compared to ₹125.1 crore in FY 2022-23. For the April-September period of the current financial year, the company reported a revenue of ₹62.22 crore.

The company’s profit after tax (PAT) declined 27% to ₹5.78 crore in FY24 compared to ₹7.96 crore in FY23. For the April-September 2024 period, its net profit stood at ₹5.4 crore.