FX Multitech IPO
IPO price, dates, subscription, financial performance, strengths, risks and offer details
₹2,64,000 / 2,400 shares
Bidding Dates21 Sept, 26 – 23 Sept, 26
Min Investment₹2,64,000
Lot Size1,200
Price Range₹110 – ₹116
Issue Size₹45.24 Cr.
Subscription0.46x
IPO Timeline
IPO Offer Start21 Sept, 26
IPO Offer Ends23 Sept, 26
Allotment Finalisation24 Sept, 26
Refund Initiation25 Sept, 26
Listing of Shares28 Sept, 26
Strengths
Established international supplier relationshipsThe company maintains long-standing relationships with suppliers across Europe and Asia in the HVAC and Industrial Refrigeration sectors. These relationships provide access to a broad range of products and technology while supporting its competitive position in India.
Broad distribution and warehouse networkFX Multitech has developed a distribution footprint across several Indian states, supported by strategically positioned warehouses and organized logistics. This network helps facilitate timely and consistent product availability across its operating markets.
Diversified product portfolioThe company distributes products across HVAC, refrigeration, automation, electrical components and industrial accessories. This broad portfolio reduces reliance on a single product category and provides some diversification against sector-specific demand changes.
Established customer relationshipsThe company has built long-term relationships with customers across its markets. Technical knowledge and after-sales support contribute to repeat business and its position as a sourcing partner for critical components.
Integrated procurement and supply chainA structured procurement and supply chain system, supported by vendor relationships, warehouses in multiple locations and organized logistics, is designed to maintain product availability and support business continuity.
Experienced promotersPromoters Subhash Agarwal and Selvaraj Rangaswamy collectively bring more than six decades of industry experience. Their leadership is focused on product quality, innovation, customer service and maintaining the company's market position.
Risks
High dependence on a single supplierAround 74.11% of total purchases in FY2025-26, 71.39% in FY2024-25 and 73.96% in FY2023-24 came from one supplier. Any disruption, termination or unfavorable change in this relationship could affect product availability, pricing, margins and competitiveness, with no certainty of an immediate replacement.
No binding long-term customer contractsThe company primarily operates through purchase orders or short-term arrangements rather than binding long-term customer agreements. Customers may reduce, cancel or discontinue orders, limiting revenue visibility and increasing exposure to demand fluctuations.
Negative operating cash flowCash flow from operating activities was negative at ₹(99.23) Lakhs in FY2025-26 and ₹(192.99) Lakhs in FY2024-25. Investing cash flows were also negative across the reported periods. Continued negative cash generation could constrain liquidity, expansion funding and growth.
Regional revenue concentrationApproximately 77.96% of domestic revenue in FY2025-26, 81.85% in FY2024-25 and 78.92% in FY2023-24 came from three states, primarily Gujarat, Tamil Nadu/Maharashtra and Telangana/Maharashtra. Regional economic weakness, regulatory changes or natural events could therefore affect performance.
Historical regulatory compliance mattersThe company has disclosed historical issues including receipt of share consideration in cash, incorrect filings with the Registrar of Companies, delayed BEN-2 filings and late statutory e-form submissions. While no material penalties have been imposed so far, future regulatory action could affect its reputation and financial position.
Extended customer credit periodsThe company generally provides customers with a credit period of up to 180 days. Customer financial difficulties or disputes could delay collections, affecting profitability, cash generation and the overall financial position.
Exposure to HVAC and refrigeration cyclesA meaningful share of revenue comes from HVAC and Industrial Refrigeration customers. Lower demand, technological changes or greater competition in these industries could lead to pricing pressure, lower margins or loss of market share.
Working capital intensive operationsInventory represented 44.55% of total assets as of March 31, 2026. The company proposes to allocate ₹1,483.00 Lakhs from Net Proceeds toward working capital. Insufficient cash flows or credit availability could increase borrowing costs and disrupt operations.
Dependence on third-party logisticsThe company relies entirely on third-party logistics providers, largely from the unorganized sector, and does not have long-term transportation agreements. Strikes, fuel price movements or natural disasters could cause delivery delays, raise logistics costs and affect margins.
Group company conflict riskFrascold India Private Limited, a Group Company in which the promoters hold a significant interest, operates in the same HVAC and Industrial Refrigeration industry. Although a non-compete agreement exists, potential conflicts of interest, divided promoter attention or preferential treatment could affect sales and customer relationships.
Objectives
A portion of the Net Proceeds is proposed to be used for full or partial repayment or pre-payment of specified working capital borrowings obtained from The Hongkong and Shanghai Banking Corporation Limited, with the aim of reducing debt and strengthening leverage capacity.
The company plans to invest part of the Net Proceeds in its subsidiary, Everestt Chillers Private Limited (ECPL), to acquire additional machinery, increase manufacturing capacity, launch new product categories and enhance in-house production capabilities.
A portion of the Net Proceeds is proposed for incremental working capital requirements to support business expansion, improve profitability and free up internal funds currently tied up in working capital.
The balance of the Net Proceeds, subject to a maximum of 15% of the amount raised or ₹10 crores, whichever is lower, is proposed for general corporate purposes including operating expenses, marketing, strategic initiatives and other business requirements.
Yearly Financial Results
Consolidated
| Annual Financials | Mar 2025 | Mar 2026 |
|---|---|---|
| Revenue | 102.01 | 126.14 |
| Expenses | 89.64 | 110.14 |
| Other Income | 0.45 | 0.27 |
| Total Revenue | 102.45 | 126.41 |
| Profit Before Tax | 12.81 | 16.27 |
| Net Profit | 9.55 | 11.80 |
Above figures are in Rs. Crores
Balance Sheet
Consolidated
| Balance Sheet | Mar 2025 | Mar 2026 |
|---|---|---|
| Total Assets | 69.27 | 85.88 |
| Current Assets | 63.54 | 80.18 |
| Fixed Assets | 5.73 | 5.70 |
| Total Equity & Liabilities | 69.27 | 85.88 |
| Total Liabilities | 41.27 | 45.77 |
| Current Liabilities | 39.16 | 44.24 |
| Non Current Liabilities | 2.11 | 1.53 |
| Total Equity | 28.00 | 40.11 |
Above figures are in Rs. Crores
Cash Flow
Consolidated
| Cash Flow | Mar 2025 | Mar 2026 |
|---|---|---|
| Net Cash Flow | -0.03 | 0.40 |
| Investing Activities | -1.51 | -0.67 |
| Operating Activities | -1.93 | -0.99 |
| Financing Activities | 3.40 | 2.06 |
Above figures are in Rs. Crores
About FX Multitech
FX Multitech Limited was incorporated in 2008 and is headquartered in Ahmedabad, Gujarat. The company distributes and exports a broad range of products serving the HVAC and Industrial Refrigeration industries, including compressors, refrigeration controls, variable frequency drives, heat exchangers, refrigerants and related products sourced from internationally recognized brands.
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