Fabtech Technologies
- Fabtech Technologies is coming out with a 100% book building; initial public offering (IPO) of 1,20,60,000 shares of Rs 10 each in a price band Rs 181-191 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 29, 2025 and will close on October 1, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 18.10 times of its face value on the lower side and 19.10 times on the higher side.
- Book running lead manager to the issue is Unistone Capital.
- Compliance Officer for the issue is Neetu Sunil Buchasia.
Profile of the company
Fabtech Technologies is a global company headquartered in India, specializing in turnkey engineering solutions for pharmaceuticals, biotech and healthcare companies. Its footprint spans more than 62 countries Middle East, Africa, Asia, Europe, Latin America, North America, etc. The company has presence across some of the key emerging economies like Bangladesh, Egypt, Ethiopia, India, Kenya, Kingdom of Saudi Arabia, Morocco, Nicaragua, Nigeria, South Africa, Turkey, UAE, USA and Tanzania. The company provides extensive technical expertise and infrastructure to deliver comprehensive solutions for establishing aseptic manufacturing facilities, encompassing everything from design to certification. It offers comprehensive start to finish services in greenfield projects, encompassing disease identification, planning, designing, engineering, procurement, quality assurance, logistics management and installation and commissioning for a wide range of customers across various geographies, particularly key emerging economies.
Additionally, it also offers some of its engineering solutions, which majorly include, equipment procurement and supply and logistics management, on a standalone basis, either as part of greenfield or brownfield projects. In such projects, the feasibility study, design and engineering and other execution functions are undertaken by third party solution providers, and its scope is limited to equipment supply or any other services, required by its customers.
The company’s comprehensive solutions encompass the entire project lifecycle of its customers and address the three key elements in pharmaceuticals, biotech and healthcare facilities, namely, bio clean air, clean water, and process. In addition to offering targeted solutions across the value chain, it also has an established track record in executing pharmaceutical projects across a diverse range of dosage forms, encompassing, liquids, solids, and semisolids. Its turnkey engineering solutions involve an extensive range of services, viz., comprehensive market analysis that combines geographic and demographic insights to understand the current and future competitive environment, disease profiling for aligning solutions to the specific needs of the target market, designing and detailed engineering of equipment tailored to the manufacturing process and the applicable quality standards, leveraging the best technologies to enhance the efficiency, reliability, and sustainability of the projects and execution and commissioning strategy.
Proceed is being used for:
- Funding working capital requirements of the company
- Pursuing inorganic growth initiatives through acquisitions
- General corporate purposes
Industry Overview
The Indian pharmaceutical industry is the world’s third largest by volume and was valued at Rs 4.5 trillion (including bulk drugs and formulation exports) as of fiscal 2025. The industry can be broadly classified into formulations and bulk drugs. Formulations can further be divided into domestic formulations and export formulations, both having almost an equal share in the market. At present, low-value generic drugs constitute a large part of Indian exports. India accounts for 3.5% of total drugs and medicines exported globally, and exports pharmaceuticals to more than 200 countries and territories, including highly regulated markets such as the US, the UK, the European Union and Canada. The Indian domestic formulation market has seen healthy growth in the recent times. As of FY2025, the Indian domestic formulation market contributed to approximately 2% of the total global pharmaceutical market. Indian domestic formulations market (consumption) grew at a healthy rate at a CAGR of 9% CAGR from FY2020 to FY2025.
The value chain of turnkey pharmaceutical engineering solution providers in pharmaceutical capex activities encompass a comprehensive range of stages and contributions. It usually starts with consulting/advisory services which includes thorough market research and analysis, which help in identifying specific needs, goals, and challenges. This stage also includes strategic planning and feasibility studies to ensure the viability of capex projects. Advisory services are usually followed by implementation of design and engineering expertise to develop facilities that meet regulatory requirements, industry standards and client specifications. Once the design and detailed layout are prepared, it is followed by procurement and supply chain management involving vendor selection, sourcing equipment, machinery and materials while managing contracts, deliveries and quality control. Some turnkey engineering solution providers also supply equipment, machinery and systems themselves to ensure greater control over quality and processes.
Turnkey engineering solution providers play a key role in ensuring optimal use of resources through providing comprehensive and customized solutions as per individual projects need. As integrated turnkey solution providers manage every aspect of the project from conception to completion, they ensure seamless and streamlined integration between various stages of the project, thereby increasing the chances of successful implementation. Turnkey solution providers have experienced teams that possesses extensive knowledge of various domains, which makes them more adept at handling complex challenges effectively. Additionally, as turnkey engineering solution providers operate across different geographies, they offer substantial benefits to the companies which are expanding into new regions. Their extensive experience combined with their local contacts helps pharmaceutical companies in navigating the complexities of new markets.
Pros and strengths
Key turnkey engineering solution provider: The company is a key turnkey engineering solution provider in pharmaceuticals capex space, offering comprehensive start to finish solutions encompassing designing, engineering, procurement, installation and testing of pharmaceutical equipment for a wide range of customers. It provides comprehensive start to finish execution of controlled environment infrastructure with the ability to provide end to end solution encompassing designing, engineering, procurement, installation, testing, commissioning, management and operational support for a wide range of customers primarily in the pharmaceutical, biotechnological, and healthcare sectors across geographies.
Asset-light and integrated business model: The company has adopted a scalable, asset-light and less capital-intensive business model by procuring equipment from its Related Entities and third-party equipment suppliers. Since, it procures majority of the equipment required by its customers through its Related Entities, on an arms-length basis and third-party equipment suppliers it is not required to make capital investment for setting up a manufacturing unit or heavy machinery for manufacturing the equipment supplied by the company. This asset light business model, enables it to direct all its efforts towards project execution and sales and marketing activities, while ensuring that the equipment supplied to its customers are of desired quality and delivered in a timely manner. Sourcing of equipment through its Related Entities also provides it the requisite control over the cost of equipment and the quality of the equipment installed by it in a project, thereby enabling it in achieving economies of scale.
In-house software technology capabilities: The company’s Promoters and Key Managerial Personnel, through their comprehensive experience in managing and leading pharmaceutical turnkey engineering projects, have gained insight in understanding and resolving key issues that arise while executing projects and the measures that can be adopted to reduce execution time and increase the productivity of employees. Under the guidance of its Promoters and Key Managerial Personnel, the company has developed in-house software technology capabilities that track the complete life-cycle of its projects and enable various teams to manage, supervise and control their respective responsibilities in a timely and coordinated manner.
Project execution across diverse and challenging geographies: The company is an enabler in consolidating technical knowhow and infrastructural capabilities for aseptic manufacturing and research processes in the pharmaceutical, healthcare and biotechnology sectors, in key emerging economies like Bangladesh, Egypt, Ethiopia, India, Kenya, Kingdom of Saudi Arabia, Morocco, Nicaragua, Nigeria, South Africa, Turkey, UAE, USA and Tanzania. The company has a track record of executing projects across diverse and challenging geographical landscapes. Owing to its international operations particularly in emerging economies, it has developed the capabilities of successfully delivering projects in regions where conditions are less than favourable, on account of regional conflicts, disruption in supply chains, difficulty in recruiting skilled employees, etc. It addresses and mitigates such challenges through risk assessment, comprehensive planning, and leveraging local expertise.
Risks and concerns
Substantial revenue comes from limited projects: The company is dependent upon and derive a substantial portion of its revenue from a limited number of projects, that form part of its order book. The company has garnered 56.06%, 63.17% and 74.98% of its total revenue from top 5 projects in FY25, FY24 and FY23 respectively. Cancellation of projects by customers could have a material adverse effect on its business, results of operations and financial condition.
Limited operating history: The company was incorporated in 2018, however the business of offering turnkey engineering solutions was transferred to the company from Fabtech Technologies International Private Limited (formerly known as Fabtech Technologies International Limited) (FTIPL). It has a limited operational history as a standalone unit, however for the purpose of comprehending its business model and its results of operations, the operational history of the Fabtech Group can be relied upon by the investors, while making an investment decision. Further, it has limited historical financial data, and it operates in a rapidly evolving market. As a result, any predictions about its future revenue and expenses may not be as accurate as they would be if it had a longer operating history or operated in a more predictable market.
High working capital requirement: The company’s business is working capital intensive in nature. As of July 31, 2025, it had utilized working capital demand loans from banks amounting to Rs 1,549.13 lakh. Its ability to arrange for financing and its cost of borrowing depend on a number of factors, including general economic and market conditions, credit availability from financial institutions, the amount and terms of its existing indebtedness, investor confidence, and the continued success of current projects. If it experiences insufficient cash flows or are unable to access suitable financing to meet working capital requirements and loan repayment obligations, its business, financial condition and results of operations could be adversely affected.
Dependent on Associate companies for purchase of significant portion of equipment and materials: The company procures a significant portion of its equipment and materials from its Associate, Promoter Group entities and Group Companies. By strategically partnering with a diverse and reliable network of equipment manufacturers, the company can flexibly scale its resources based on project demands, ensuring optimal utilization of assets, and minimizing its capital expenditure. Significant dependence on related parties for purchase of its equipment may result in conflict of interest in allocating business opportunities amongst the company and its Related Entities in circumstances where its respective interests diverge.
Outlook
Fabtech Technologies is a biopharma engineering company. The company designs and delivers turnkey projects, including cleanroom facilities, modular systems, and customized engineering solutions. Moreover, the company has diversified order book across geographies, clients, and business verticals. The company has strong project execution across diverse and challenging geographies. On the concern side, as a result of its limited operating history, the company may not be able to compete successfully, and it may be difficult to evaluate its business and future operating results on the basis of its past performance. Moreover, it is dependent upon and derive a substantial portion of its revenue from a limited number of projects, that form part of its order book. Cancellation of projects by customers could have a material adverse effect on its business, results of operations and financial condition.
The issue has been offering 1,20,60,000 shares in a price band of Rs 181-191 per equity share. The aggregate size of the offer is around Rs 218.29 crore to Rs 230.35 crore based on lower and upper price band respectively. Minimum application is to be made for 75 shares and in multiples thereon, thereafter. On performance front, revenue from operations increased by Rs 10,053.21 lakh or 44.46%, from Rs 22,613.63 lakh in Fiscal 2024 to Rs 32,666.85 lakh in Fiscal 2025. Moreover, profit for the year increased by Rs 1,923.56 lakh, or 70.67%, from Rs 2,721.74 lakh in Fiscal 2024 to Rs 4,645.30 lakh in Fiscal 2025.
The company intends to expand its integrated operations by continue building an integrated supplier base in India, United Arab Emirates, Saudi Arabia and Egypt, to ensure timely delivery of equipment, quality control through trusted procurement sources and cost effectiveness by reducing logistical costs. By enhancing its operational efficiencies, it shall be able to achieve economies of scale, better absorb its fixed costs, reduce its other operating costs and strengthen its competitive position.
