Fabtech Technologies Cleanrooms is expanding its air handling and controlled-environment solutions by acquiring Advantek Air Systems.
Advantek Air Systems manufactures AHU and HVAC equipment for the commercial and pharmaceutical industries.
At a board meeting held on 12 February, Fabtech approved the acquisition of an additional 38,673 shares in Advantek Air Systems at a total consideration of approximately ₹2.55 crore (about $310,000)
This additional equity will raise Fabtech’s existing shareholding in air handling and enhance its capabilities in integral HVAC and cleanroom air management systems.
The transaction is structured on an “arm’s-length basis”, meaning the buyer and seller act independently, are not related to each other. It is expected to close by 15 March.
Advantek has seen turnover growth in recent years, reflecting robust demand for HVAC components used in contamination-controlled environments, a core building block of Fabtech’s integrated cleanroom offerings.
Fabtech Technologies expanding global footprint
The moves come on the heels of recent initiatives that include its launch of a UAE subsidiary and joining forces with KP Group to implement green-energy-powered turnkey cleanrooms.
Fabtech Technologies and Fabtech Technologies Cleanroom are both born out of the original India-based global "Fabtech" brand.
In 2020, the modular panel business of Fabtech Technologies spun out into its own business. This business then registered as a public company in April 2024 and underwent an initial public offering (IPO) in January 2025.
The two entities have issued a statement to clarify the distinct identities of the two businesses.
The authorised preferential allotment
In tandem with the acquisition, the board has authorised a preferential allotment of 1,24,440 equity, with ₹320 crore for every single share, aimed at raising approximately ₹3.98 crore (about $480,000)
These shares are earmarked for a non-promoter investor, Raveendra Shetty, who will hold around 1% stake post-issue.
The capital raise is intended to provide the company with greater flexibility to pursue its strategic agenda, including international growth and enhanced project execution capabilities.
Both the Advantek acquisition and preferential allotment will be presented to shareholders at an Extraordinary General Meeting following regulatory requirements and appointed scrutiniser oversight.