Fitch assigns 3/5 grade to Technofab IPO

The proposed initial public offer (IPO) of Technofab Engineering has received a 3/5 grade from Fitch Ratings. The grade indicates 'average fundamentals' of the issue relative to other listed equity securities in India.

Technofab Engineering plans to enter the capital markets with an IPO of 2.99 million equity shares of face value of Rs 10 each for cash at a price to be decided through a 100 per cent book-building process.

The issue comprises of a reservation of 50,000 equity shares for eligible employees. The issue will constitute 28.5 per cent of the post issue paid-up equity capital of the company. The net issue will constitute 28.03 per cent of the post issue paid-up equity capital of the company.

Technofab is engaged in the business of providing engineering, procurement and construction (EPC) services and executing a wide range of balance-of-plant (BoP) and electro-mechanical projects on a complete turnkey basis.

The issue proceeds would be utilised to meet long term working capital requirements, procurement of construction equipment, setting up of maintenance and storage facility for construction equipment, setting up training centre for employees and balance for general corporate purposes.