Biotech solutions provider Fabtech Technologies files IPO papers with Sebi
Fabtech Technologies, a turnkey engineering solutions provider for the pharmaceuticals, biotech and healthcare industry has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The IPO with a face value of Rs 10 per equity share is entirely a fresh issue of up to 1.20 crore equity shares. The offer also includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The company, in consultation with the book-running lead managers, may consider a further issue of equity shares through a private placement, preferential offer, or any other method aggregating up to Rs 10 crores and shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The issue is being made through the book-building process, wherein not more than 50% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
The proceeds from the fresh issue to the extent of Rs 120 crore will be used for funding the working capital requirements of the company; Rs 30 crore for pursuing inorganic growth initiatives through acquisitions; and
