Fabtech Technologies Cleanrooms SME IPO sees 585x subscription on day 3, GMP surges further

Fabtech Technologies Cleanrooms IPO

The initial share sale of Fabtech Technologies Cleanrooms attracted robust subscription demand even on the final day of bidding, January 7, subscribing 585.23 times, while the grey market premium increased sharply further.

The pre-engineered and pre-fabricated modular panels and doors manufacturer, catering to pharmaceutical, healthcare, and biotech sectors, targets to raise Rs 27.74 crore via initial public offering, which comprises of solely fresh issue of 32.64 lakh shares. The price band for the offer is Rs 80-85 per share.

Investors have bid for 136.7 crore equity shares against the offer size of 23.36 lakh shares via 4.59 lakh applications, the subscription data on the BSE showed.

Non-institutional investors remained at the forefront to boost the IPO subscription numbers, bidding 884.87 times their allotted quota. Retail investors picked 630.28 times their reserved portion, while the part set aside for qualified institutional buyers was subscribed 201.13 times.

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Fabtech Technologies IPO shares also garnered solid interest in the grey market, trading at around 90 percent premium over the upper price band, the market observers said. The grey market is an unofficial platform for trading in the IPO shares till the listing.

The company will finalise IPO share allotment by January 8, while investors can start trading in Fabtech Technologies shares effective January 10.

The Mumbai-based company manufactures and provides design-to-validation solutions of pre-engineered and pre-fabricated modular panels and doors for building cleanrooms for pharmaceutical, healthcare & biotech sectors. Cleanroom solutions, which are tailor made as per customers’ requirements, comprises of wall panels, view panels, doors, risers, ceiling panels, covings, heat ventilation air conditioning (HVAC) system, epoxy flooring and electrification works.

The IPO proceeds will be utilised mainly for company's long-term working capital requirements, and proposed acquisition of equity shares of Kelvin Air Conditioning and Ventilation Systems.

Vivro Financial Services is the sole book running lead manager to the issue.