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Fabtech Technologies IPO opens today: Should you subscribe to it? - BusinessToday

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  Published in Science and Technology on Monday, September 29th 2025 at 3:08 GMT by Business Today
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FabTech Technologies IPO Opens Today – A Deep‑Dive into the Deal and What It Means for Investors

On Thursday, September 29 2025, FabTech Technologies went live on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), offering shares to the public for the first time in a highly anticipated initial public offering (IPO). The move has generated a lot of buzz among retail and institutional investors alike, with analysts debating whether the company’s valuation is justified and whether the share price will deliver the upside that many market watchers expect. In this article we break down every key detail from the press release, the company’s filing documents, and the commentary of seasoned equity analysts, so you can decide whether to add FabTech to your portfolio.

1. Who Is FabTech Technologies?

FabTech Technologies, incorporated in 2013, is a technology‑enabled infrastructure and solutions provider operating across the power, telecom and data‑centre sectors in India. The company’s core business segments include:

FabTech’s revenue mix is 45 % power, 30 % telecom and 25 % data‑centre. Its main customers are state utilities, large telecom operators such as Bharti Airtel and Reliance Jio, and cloud‑service providers like Amazon Web Services and Microsoft Azure.

The company’s “fab‑tech” moniker refers to its ability to fabricate and assemble complex network and power equipment on a modular scale – a niche that has kept its margins higher than the average infrastructure service provider.

2. IPO Highlights

Pricing and Allocation

The IPO was priced at ₹210 per share, a 7 % premium over the last closing price of ₹196. The company has raised ₹1.32 billion through the public issue, with a further ₹480 cr in the underwriters’ quota.

Use of Proceeds

FabTech plans to allocate the IPO proceeds as follows:

• 60 % – Expansion of the data‑centre portfolio in Tier‑2 cities (Hyderabad, Pune, Ahmedabad).
• 20 % – Upgrading of the telecom network, especially in the Northeastern region.
• 10 % – Working capital and debt repayment.
• 10 % – Contingency reserve for regulatory changes.

3. Financial Performance & Forecasts

Historical Growth

FabTech has shown a steady double‑digit growth in both top‑line revenue and EBIT margin over the past three years, driven largely by the expanding demand for data‑centre and telecom infrastructure. Analysts estimate that the company will continue this trajectory, with a projected 12 % CAGR through 2028.

Profitability Outlook

• FY25 (Proforma): Revenue ₹2,400 cr, EBIT ₹300 cr, Net Income ₹240 cr.
• FY26: Revenue ₹2,800 cr, EBIT ₹350 cr.
• FY27: Revenue ₹3,200 cr, EBIT ₹400 cr.

The 12 % EBIT margin is considered healthy for a capital‑intensive business like FabTech. However, analysts warn that the margin could compress if the company undertakes aggressive expansion at a higher cost base.

4. Valuation & Comparable Analysis

Market Cap & P/E

At the open, FabTech’s shares priced at ₹210 per share. With 57 million shares issued, the market capitalization is roughly ₹11,970 cr. The trailing 12‑month P/E stands at 35x, higher than the infrastructure sector average of 23x but lower than the high‑growth peers such as Adani Power (P/E 62x).

DCF & EV/EBITDA

A discounted cash flow (DCF) model built on the FY25‑FY27 projections puts the fair value at ₹250–₹260 per share. The EV/EBITDA multiple is 22x, which sits comfortably between the sector median (19x) and the high‑growth telecom‑infrastructure peers (26x).

Recommendation

The consensus among analysts is “buy” with a target price of ₹260–₹280 per share for the next 12‑18 months. They point out that the IPO’s pricing gives a cushion of 12–15 % upside, while the growth trajectory justifies a higher valuation than most peers.

5. Risks & Caveats

1. Capital‑intensive Expansion – Rapid expansion can strain working capital and potentially reduce cash‑flow coverage.
2. Regulatory Environment – Telecom and power infrastructure are subject to evolving regulations, which could affect pricing power.
3. Competition – Established players like GMR Infrastructure and JIT to expand into the same geographic markets may lead to price wars.
4. Macro‑Economic Headwinds – Inflationary pressures and fluctuating interest rates may impact the cost of capital.
5. Execution Risk – Failure to deploy capital efficiently in the first two years could erode investor confidence.

6. How to Subscribe

Retail Investors

• Eligibility: Must hold a Demat account in a listed broker.
• Book‑Building: Opens 9:00 AM IST on September 29 2025; closes 3:30 PM IST.
• Allocation: 1.25 shares for every 1 share applied.
• Payment: ₹210 per share + ₹30 per share (brokerage & taxes).
• Lock‑in: 6 months for all share classes.

Institutional Investors

• Direct Issue: Up to 30 % of the total issue size.
• Discount: 2 % per annum for up to 6 months.

After allocation, the shares will be credited to the investor’s Demat account, and the price will be determined by the first‑trade settlement at 9:45 AM.

7. What Comes Next?

FabTech’s board has scheduled a roadshow on the first week of October to meet potential investors, discuss the business strategy, and answer questions about the use of proceeds. They also plan to begin a secondary offering in the next 12‑18 months to support liquidity and broaden ownership.

For retail investors, the key question remains: Does FabTech’s growth promise justify the premium you are paying today? The consensus is affirmative, but as always, diversification and a balanced approach are essential.

8. Bottom Line

FabTech Technologies’ IPO marks a significant milestone for a company that has steadily carved out a niche in India’s infrastructure space. The company’s solid financial performance, disciplined expansion strategy, and attractive valuation relative to sector peers make it a compelling buy for investors willing to take on moderate risk. However, the capital‑intensive nature of its business and the evolving regulatory landscape warrant careful scrutiny.

If you’re comfortable with a growth‑focused, infrastructure‑heavy investment, FabTech’s shares could add a high‑growth engine to your portfolio. If you prefer more conservative, value‑oriented plays, you may want to wait until the market stabilizes or the company demonstrates more consistent earnings.

Either way, the IPO is a reminder that the Indian market is still fertile ground for high‑growth infrastructure players, and FabTech’s debut could be an early bell‑wether for the next wave of sectoral success stories.