Fabtech IPO Flops: Just 7% Subscribed as Institutional Investors Give Cold Shoulder

Fabtech Technologies' market debut stumbles out of the gate—qualified institutional buyers completely sat this one out while retail participation barely moved the needle.

The Opening Bell Blues

First-hour subscription rates crawled to a dismal 7%, signaling weak investor appetite for yet another tech IPO hitting the market. Zero QIB participation speaks volumes about institutional confidence—or lack thereof.

Retail's Tepid Response

Main Street investors showed slightly more interest than their Wall Street counterparts, but the overall numbers suggest the IPO fever might finally be breaking. Another case of 'build it and they will come' meeting the harsh reality of public markets.

When the so-called 'smart money' avoids an IPO like it's 1999 dot-com bubble flashbacks, maybe retail should take the hint. But what do billion-dollar funds know about technology investments anyway?

IPO details

The turnkey engineering solutions provider for pharma and healthcare industry has fixed a price band of ₹181-191 per share for its IPO, a fresh issue of up to 1.2 crore equity shares worth ₹230 crore at the upper end of the price band. The minimum lot size is 75 shares and multiples thereof.

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The Mumbai-based company will use the proceeds to fund working capital requirements, pursuing inorganic growth initiatives through acquisitions and general corporate purposes.

Unistone Capital is the sole book-running lead manager to the issue.

Brokerage view

The IPO has not bagged a strong ‘subscribe’ rating from brokerages. Reliance Securities noted that Fabtech’s asset-light model, proprietary project management system and presence in emerging markets make it well-positioned to capitalise on the structural growth in global pharmaceutical capital expenditure. The company’s diversified order book also lends visibility to near-term revenues.

However, the brokerage flagged risks such as low proposal-to-order conversion rates and reliance on third-party procurement. 

Quoting that the company is fairly valued, Reliance Securities assigned a neutral rating to the issue.

Published on September 29, 2025