Fabtech Technologies IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Incorporated in 2018, the company operates as a turnkey engineering solutions provider in the pharmaceutical and biotechnology capex space, offering end-to-end services across design, engineering, procurement, installation, and testing of equipment. Its integrated model addresses critical facility requirements in clean air, clean water, and process systems, catering to pharmaceutical, biotech, and healthcare clients.

An asset-light approach has been adopted, wherein equipment and materials are procured from related entities, enabling streamlined execution and assured quality. This model enhances operational efficiency while allowing greater focus on project management and client relationships.

The company has demonstrated strong execution capabilities, having completed 51 projects across 62 countries as of July 2025. Its geographic footprint is well diversified across the Middle East, Africa, Asia, Europe, and the Americas, with a particularly strong presence in the Gulf Cooperation Council (GCC), Middle East and North African (MENA), and Economic Cooperation Organization (ECO) regions, which are among the fastest growing pharmaceutical hubs globally.

Its expertise spans both Greenfield and Brownfield projects, with services offered on a turnkey basis as well as standalone modules such as equipment procurement and logistics. By leveraging domain knowledge and global presence, the company is positioned as a reliable partner for complex pharmaceutical projects across multiple dosage forms, including liquids, solids, injectable, and semisolids.

IPO Synopsis:

Objective of the Issue:

• Funding working capital requirements of our Company – ₹ 127 Crores
• Pursuing inorganic growth initiatives through acquisitions – ₹ 30 Crores
• General corporate Purposes

Strengths:

• Asset-Light and Integrated Model:
  The company operates on an asset-light business model, channeling resources primarily toward execution, sales, and marketing. This approach ensures high operational efficiency, quality assurance, and timely delivery, while reducing capital intensity. Such a structure provides flexibility to scale operations and enhances overall project profitability.

• Diversified Geographic Order Book:
  A well-diversified order book across clients, verticals, and geographies significantly reduces concentration risk. With a strong presence in the GCC, MENA, and ECO regions - global leaders in pharmaceutical and biotech spending, the company is strategically positioned to capitalize on favorable market dynamics and sustained industry investments.

• Strong Execution Track Record:
  The company has consistently demonstrated its ability to deliver complex pharmaceutical projects across varied dosage forms including tablets, injectable, and semisolids. Its turnkey solutions in clean air, water, and process infrastructure highlight strong technical expertise, building credibility and reinforcing customer trust in international pharmaceutical engineering markets.
• Experienced Leadership and Promoter Support:
  Led by promoters associated with the Fabtech Group and supported by a CEO with three decades of experience, the management team brings proven expertise and stability. Deep domain knowledge, coupled with a strong industry reputation, has enabled sustained growth, robust customer relationships and a clear strategic vision.

Risks:

• Uncertain Revenue Visibility:
  A significant portion of revenues is derived from project-based contracts, which are largely non-recurring in nature. With proposal-to-order conversion rates of only 8-10%, Earnings visibility remains limited. Dependence on continuously securing new projects exposes the company to variability in financial performance and potential revenue volatility.

• High Project Concentration:
  The company’s revenue profile is heavily reliant on a few large projects. The top five customers contributed 53%, 65%, and 74% of revenues in FY25, FY24, and FY23, respectively. Such concentration increases business risk, as the loss or delay of orders from key clients could materially affect revenues.

• Dependence on Turnkey Segment for Revenues:
  Turnkey engineering services account for the majority of revenues, representing 75%, 87%, and 91% of revenues in FY25, FY24, and FY23, respectively. Heavy reliance on a single business vertical heightens exposure to demand cycles in the pharmaceutical capex market, limiting diversification and revenue resilience.

• Exposure to International Operations:
  A majority of projects are located in GCC, MENA, and ECO regions. This concentration exposes the company to geopolitical uncertainties, regulatory complexities, tax regimes, and currency fluctuations. Effective management of geographically diverse projects remains critical to sustaining margins and mitigating operational risks in international markets.

Financial Snapshot (Rs. In Crores):