FX Multitech

Founded in March 2008, FX Multitech has evolved into a key player in the HVAC and industrial refrigeration distribution space. Over nearly two decades, the company has built a robust framework for sourcing high-quality engineering products from global suppliers to meet domestic industrial needs.

The company's business model centers on the distribution of a wide variety of technical products, including refrigeration and air-conditioning controls, variable frequency drives, automation products, cold room evaporators, and refrigerants. By acting as a critical link between global manufacturers and Indian industrial end-users, they ensure the availability of specialized components.

Strategically headquartered in Ahmedabad, Gujarat, FX Multitech has expanded its operational footprint across India. It maintains a diversified distribution network with strategically located warehouses in Hyderabad, Thane, Kolkata, and Bangalore to optimize supply chain efficiency and delivery timelines.

Beyond the domestic market, the firm is actively pursuing an international expansion strategy by exporting its products, aiming to leverage its sourcing expertise to capture global market share. The company's operational scale is supported by a sophisticated logistics network and a deep understanding of industrial cooling requirements.

The company is led by a promoter group consisting of Subhash Agarwal, Selvaraj Rangaswamy, Anita Agarwal, and Kanagalakshmi Selvaraj, who have steered the firm from a regional distributor to a multi-city operation with growing international ambitions.

FX Multitech is launching a book-build issue to raise approximately ₹45.24 Crores. The issue is structured with a dominant fresh issue component of ₹41.20 Crores and a small offer for sale (OFS) of approximately 3,48,000 shares. The price band is set at ₹110 to ₹116 per share, with a minimum retail lot size of 2,400 shares requiring an investment of ₹2,78,400. The IPO is open from September 21 to September 23, 2026, with listing scheduled for September 28, 2026, on the BSE SME platform.

The proceeds from the fresh issue are earmarked for strategic growth and debt management. Specifically, ₹10.00 Crores will be used for the repayment or prepayment of certain borrowings, ₹14.83 Crores will fund working capital requirements, and ₹6.26 Crores will be invested in its subsidiary, Everestt Chillers Private Limited, for the purchase of machinery.

Financial performance shows a positive growth trajectory. Revenue increased from ₹68.74 Crores in FY24 to ₹102.34 Crores in FY25, reaching ₹111.90 Crores in FY26. Net Profit (PAT) has also seen a steady climb, rising from ₹4.18 Crores in FY24 to ₹9.64 Crores in FY25, and further to ₹11.54 Crores in FY26.

From a valuation perspective, the company reports a Basic EPS of ₹10.92 for FY26. While there are no direct listed peers in India for a precise P/E comparison, the company's high ROE of 37.63% and ROCE of 28.93% suggest strong operational efficiency. The high ratio of fresh issue to OFS indicates that the promoters are committed to scaling the business rather than merely exiting.

Investment strengths include the strong growth in top and bottom lines, a lean capital structure, and a diversified geographical presence. However, investors should consider risks such as the lack of listed peers for valuation benchmarking and the dependency on global suppliers for its product range.

Overall, the IPO presents a balanced opportunity for investors looking for exposure to the industrial HVAC sector, backed by healthy financial metrics and significant institutional interest, though the SME listing brings inherent liquidity risks.