Is Fabtech’s Rs 230 Crore IPO Your Next Pharma Jackpot?

India’s IPO market has been buzzing with activity this year, and the next one on the block is Fabtech Technologies, a cleanroom and turnkey solutions provider for pharma and biotech companies. The company is securing over ₹230 crore through a fresh issue IPO route, with the price band set at ₹181–191 per share. The issue opens and the start date would fall on September 29, 2025 and closes on October 1, 2025.

So, what does Fabtech actually do? It is not a company that produces drugs. Rather, this unique setting creates a cleanroom, HVAC system, modular walls, flooring, and complete installations that pharmaceutical producers and biotechnology companies require to adhere to stringent regulatory requirements. With more than 90% of its revenue coming from pharma and healthcare customers, Fabtech has made a place in this highly regulated industry.

Core Business:The company provides end-to-end solutions for pharmaceutical, biotech and healthcare industries. This includes commissioning, designing, engineering, procurement equipment, installation, testing and commission of complete production facilities.

Global Reach: As of mid-2025, Fabtech had successfully executed projects in over 62 countries, including Saudi Arabia, Nigeria, the USA, and Bangladesh. This global appearance brings variety to its revenue sources and taps in the growing demand for infrastructure of drugs worldwide.

Integrated model: By offering "One-stop-shop", the company reduces the execution risk for its customers, which can increase strong customer relationships and repeat business.

Asset-light model: The company follows an asset-light business model, which focuses on project management and execution, purchasing equipment from concerned institutions and third-party suppliers.

Fabtech Technologies: Financial Performance

Fabtech's financial strong growth highlights, with the revenue growing from ₹199 crores in FY23, has increased to ₹335 crores in FY25, and in the same period the profits after tax surged and consistently  improved from ₹21 crore to ₹46 crore. Referring to better operating efficiency, the margin has expanded continuously from 10.6% to 13.7%. However, there is a matter of concern: its cash conversion cycle has increased from 45 days to 85 days in FY22 in FY23. This indicates that a large part of the capital is now bound in the receivable and inventory, which indicates the working capital-intensive nature of the business. While the speed of development looks solid, it will require strict control over cash flow to avoid stress of liquidity to maintain it.

Valuation Perspective

Fabtech Technologies Ltd's post-IPO market capitalization is estimated to be ~₹849 crore. This valuation is based on the company's projected and estimated share price post-listing, which is expected to be around ₹191 per share at the upper end of the IPO price band.

The IPO comprises a portion of fresh issue of 1.21 crore equity shares, which is aggregating to ₹230.35 crore. After the issue, the total number of shares outstanding is expected to be around 4.45 crore. 

At the upper price band, the IPO values Fabtech at roughly ₹849 crore market cap post-listing, depending on subscription and demand. On FY25 earnings of ₹46 crore, that translates into a P/E multiple of ~18–19x and a Price-to-Sales ratio of ~2.7–3.0x. This reflects a reasonable valuation for a company in the biopharma engineering space.

Conclusion

Fabtech's IPO provides exposure to investors for an important niche in Pharma and Biotech Infrastructure. With strong revenue growth, to improve profitability, and to expand global reach, basic fundamentals seem to be promising. But investors must weigh the risks of project lumpiness, working capital pressure, and premium valuation before calling it a “jackpot.”

If Fabtech sustains its trajectory and executes well, it may just turn this IPO into one of the more interesting pharma-adjacent plays of 2025.