Delhi, 7 October (H.S.): The stock market debut of two newly listed companies, Fabtech Technologies and Glotis, left IPO investors deeply disappointed today, with both counters closing sharply lower from their issue prices.
Fabtech Technologies, a provider of turnkey engineering solutions for the pharmaceutical, biotech and healthcare industries, listed flat on the exchanges before sliding during the session. The company’s shares were offered at ₹191 in the IPO. They debuted on the BSE at ₹191 and on the NSE at ₹192, but sustained selling pressure drove them down to ₹182.30 on the BSE and ₹182.40 on the NSE by close, translating into a nearly 4.5% loss for first-day investors.
Fabtech’s ₹230.35 crore IPO, open from September 29 to October 1, saw an overall subscription of 2.04 times, with the QIB portion subscribed 2.02 times, NII 1.97 times, retail 2.09 times and employee quota 2.01 times. The proceeds from the sale of 1,20,60,000 new shares with a face value of ₹10 will be utilised for working capital needs and general corporate purposes.
The company’s net profit rose from ₹21.58 crore in FY23 to ₹27.22 crore in FY24, and further to ₹46.33 crore in FY25, with revenues growing at a CAGR of over 46% to ₹335.94 crore. Debt levels fluctuated during the period, falling from ₹34.29 crore in FY23 to ₹9.88 crore in FY24, before rising to ₹54.62 crore in FY25.
Meanwhile, logistics solutions provider Glotis suffered a steeper setback, listing at a deep discount to its issue price of ₹129. Shares opened at ₹88 on the BSE and ₹84 on the NSE – a fall of around 34%. Initial buying lifted them to ₹93, but renewed selling dragged the price down to ₹83.70 at close, leaving IPO investors with a 35.12% first-day loss.
Glotis’ ₹307 crore IPO, also open from September 29 to October 1, was subscribed 2.12 times overall – QIB 1.84 times, NII 3.08 times, retail 1.47 times. The offering comprised ₹160 crore worth of fresh equity and an offer-for-sale of 1,13,95,640 shares with a face value of ₹2.
Proceeds from the fresh issue will be used to purchase commercial vehicles and containers, meet working capital needs and for general corporate purposes. The company’s net profit grew from ₹22.44 crore in FY23 to ₹30.96 crore in FY24, and further to ₹56.14 crore in FY25, with revenue rising at a CAGR of over 40% to ₹942.55 crore. Debt fell from ₹30.61 crore in FY23 to ₹8.08 crore in FY24, before increasing to ₹22.14 crore in FY25.
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Hindusthan Samachar / Jun Sarkar
