An Ahmedabad-based HVAC and industrial-refrigeration products distributor opens its Rs 45.24 crore BSE SME issue on September 21
FX Multitech Ltd (FML) operates in the HVAC (Heating, Ventilation and Air Conditioning) and industrial-refrigeration value chain — as a distributor and exporter of a diverse portfolio of technologically advanced components and solutions.
Rather than manufacturing in-house, it acts primarily as a distribution partner, sourcing from globally recognised manufacturers and supplying industrial and commercial customers — a play on India’s growing cold-chain, air-conditioning and industrial-cooling demand.
The product range is broad and technical. It spans compressors, refrigeration and air-conditioning controls, industrial-refrigeration controls, variable-frequency drives and automation, specialised components and tools, heat exchangers, cold-room evaporators, refrigerants and ancillary products.
The pitch is reliable, energy-efficient, cost-effective products that meet international standards of performance and efficiency, letting customers optimise operations across refrigeration and HVAC applications.
The distribution platform and supplier relationships are the moat. FML runs a multi-city warehouse network — with facilities in Hyderabad, Thane, Kolkata and Bengaluru supporting its Ahmedabad base — enabling efficient supply and after-sales support across industrial regions.
It works with marquee global suppliers including Danfoss, Honeywell Automation India, Testo India, Refco Manufacturing and Transfer Oil — relationships that are central to its value proposition.
FML acquired a 51% stake in subsidiary Everestt Chillers, which manufactures customised industrial chillers, glycol chillers, chilled-water air conditioners and effluent chillers — adding in-house manufacturing and system-integration capability on top of the distribution base, which could improve control and customer loyalty.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 21, 2026 |
| Issue Closes | September 23, 2026 |
| Listing | BSE SME |
| Listing Date | September 28, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 110 – Rs 116 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 45.24 crore (39,00,000 shares) |
| Fresh Issue | Rs 41.20 crore (35,52,000 shares) |
| Offer for Sale | Rs 4.04 crore (3,48,000 shares) |
| Min. Application | 2,400 shares (2 lots; multiples of 1,200 thereafter) |
| Min. Retail Investment | Rs 2,78,400 |
| Post-IPO Market Cap | Rs 166.57 crore |
| IPO as % of Post-IPO Capital | 27.16% |
| Lead Manager | Oneview Corporate Advisors Pvt. Ltd. |
| Market Maker | Basan Equity Broking Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
The issue is majority fresh (Rs 41.20 crore) with a small Rs 4.04 crore OFS. From the net proceeds, FML will utilise Rs 14.83 crore for working capital, Rs 10.00 crore for repayment or prepayment of certain borrowings, Rs 6.26 crore for investment in subsidiary Everestt Chillers (for machinery), and the rest for general corporate purposes — a working-capital, deleveraging and forward-integration mix.
Post-IPO, paid-up equity capital rises from Rs 10.81 crore to Rs 14.36 crore.
Price Band
At the upper band of Rs 116, on FY26 earnings the issue is valued at a P/E of about 13.76x, with a P/BV of 3.29 on the March 31, 2026 NAV of Rs 35.22, easing to 2.10x on the post-IPO NAV of Rs 55.20.
GMP Watch
Grey-market interest has been flat. As of the days around opening, the FX Multitech IPO GMP stood at ₹0
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income (standalone) | 68.74 | 102.34 | 111.90 |
| Net Profit (standalone) | 4.18 | 9.64 | 11.54 |
| PAT Margin (%) | 6.10 | 9.35 | 9.60 |
| RoCE (%) | 24.54 | 28.98 | 28.93 |
Standalone total income rose from Rs 68.74 crore in FY24 to Rs 111.90 crore in FY26, with PAT climbing from Rs 4.18 crore to Rs 11.54 crore, and PAT margin improving from 6.10% to 9.60% — solid for a distribution business, reflecting a better product mix and operating leverage.
On a consolidated basis (including Everestt Chillers), FY26 total income was Rs 126.41 crore and PAT Rs 11.80 crore. Return ratios are strong (RoCE ~29%, average RoNW ~32%).
Total debt stood at Rs 26.11 crore as of March 31, 2026 — meaningful for a company of this size — which is why Rs 10 crore of proceeds goes to debt repayment. The company reported an average EPS of about Rs 9.05. Growth also moderated in FY26 (standalone revenue up ~9%), and the sharp fall in export share (9.03% to 0.83%) is worth noting.
Peer Comparison
As per the offer document, the company has no listed peers to compare with — no directly comparable listed HVAC/refrigeration distributor — so the ~13.76x FY26 P/E stands without a clean like-for-like anchor, resting on the company’s own margins and growth.
Risks to Consider
Elevated debt is the headline concern. Total debt of Rs 26.11 crore as of March 31, 2026 is meaningful for a company of this scale; while Rs 10 crore of proceeds goes to repayment, leverage and finance costs remain a key monitorable.
Supplier concentration and distributor dependence are structural. As a distributor, FML depends heavily on a limited set of global suppliers (Danfoss, Honeywell and others) without necessarily having long-term binding arrangements — so the loss or adverse change of a key supplier relationship could hit product availability and margins.
Customer dependence and cash-flow swings. Customers can stop ordering at any time, so revenue and cash flows can swing; the working-capital-heavy model (Rs 14.83 crore of proceeds) needs disciplined collections and inventory management.
Distributor (low-value-add) model and margin. As a distribution-led business, FML has limited pricing power and is exposed to margin pressure; the Everestt Chillers manufacturing integration is a mitigant but is early-stage.
Declining exports and moderating growth. Export share collapsed from 9.03% to 0.83% of revenue, and standalone growth moderated to ~9% in FY26 — worth watching for the growth trajectory.
