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Issue Details / Capital History
The firm is popping out with its maiden guide constructing route secondary IPO of 26284500 fairness shares value Rs. 712.31 cr. on the higher cap. The firm has introduced a value band of Rs. 258 – Rs. 271 per fairness shares of Rs. 5 every. The problem opens for subscription on October 13, 2026, and can shut on October 15, 2026. The minimal utility to be made is for 55 shares and in multiples thereon, thereafter. Post allotment, shares can be listed on BSE and NSE. The problem constitutes 15% of the post-IPO paid-up fairness capital. This being a pure Offer for Sale (OFS), no funds are going to firm. The problem is being made to offer exit to a few of its stakeholders, and unlock the itemizing advantages.
The firm has reserved 64576 fairness shares (value Rs. 1.75 cr. on the higher cap) for its eligible staff, and providing them a reduction of Rs. 25 per share. From the remaining, it has allotted no more than 50% for QIBs, not lower than 15% for HNIs, and never lower than 35% for Retail traders.
The joint Book Running Lead Managers (BRLMs) to this problem are Ambit Pvt. Ltd., Anand Rathi Advisors Ltd., and IIFL Capital Services Ltd., whereas MUFG Intime India Pvt. Ltd. is the registrar to the problem. Ambit Capital Pvt. Ltd., and Anand Rathi Share & Stock Brokers Ltd. are syndicate members.
Having issued/transformed preliminary fairness shares at par worth, the corporate has issued bonus shares within the ratio of two for 1 in November 2023, 2 for 1 in July 2024, and 10for 1 in March 2025. The common price of acquisition of shares by the promoters/promoting stakeholders is Rs. NIL, Rs. 0.05, and Rs. 0.09 per share.
Post-IPO, its present paid-up fairness capital of Rs. 87.62 cr. (175230000 fairness shares) will stand similar as this can be a hundred p.c secondary problem. Based on the higher cap of the value band, the corporate is on the lookout for a market cap of Rs. 4748.73 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has posted a complete earnings/web revenue, of Rs. 392.02 cr. / Rs. 87.92 cr. (FY24), Rs. 450.68 cr. / Rs. 109.72 cr. (FY25), and Rs. 505.12 cr. / Rs. 116.79 cr. (FY26). ForQ1 of FY27 ended on June 30, 2026, it earned a web revenue of Rs. 23.87 cr. on a complete earnings of Rs. 114.07 r. The firm posted progress in its performances for the reported intervals. Rising commerce receivables year-on-year increase concern. Its contingent liabilities stood at Rs. 9.61 cr. as of March 31, 2026.
For the final three fiscals, the corporate has posted a mean EPS of Rs. 6.25 and a mean RoNW of 29.05 %. The problem is priced at a P/BV of 11.88 primarily based on its NAV of Rs. 22.82 as of June 30, 2026, in addition to on the idea of post-IPO NAV per share on the higher cap.
If we attribute FY27 annualized earnings to its post-IPO absolutely diluted paid-up fairness capital, then the asking value is at P/E of 49.72. Based on FY26 earnings, the P/E stands at 40.69. The problem seems absolutely priced primarily based on its latest common efficiency.
For the reported intervals, the corporate has reported PAT Margins of twenty-two.43% (FY24), 24.35% (FY25), 23.12% (FY26), 20.92% (Q1-FY27), and RoCE margins of 37.61%, 39.63%, 40.33%, 8.36%, respectively, for the referred intervals.
The firm has paid a dividend of 20% (FY24), 805% (FY25), 100% (FY26). It has adopted a dividend coverage in July 2026, primarily based on its earnings and future prospects.
Comparison with Listed Peers
As per the provide doc, the corporate has proven Azad Engg., KSB Ltd., Kirloskar Pneumatic, Elgi Equipment, Ingersoll-Rand, as its listed friends. They are presently buying and selling at a P/E of 134.0, 51.5, 31.9, 39.4, and 45.8 (as of October 08, 2026). However, they aren’t actually comparable on an apple-to-apple foundation. This comparability seems to be an eyewash.
HD Fire Protect Ltd. (HFPL) is an Indian producer and provider of fireside safety gear and methods, providing a complete portfolio spanning water, foam, and gas-based fireplace suppression methods, that are additionally commonly known as firefighting merchandise. The firm develops majority of merchandise in-house with proprietary designs to satisfy nationwide and worldwide requirements, serving high-hazard industrial functions in addition to residential and industrial sectors.
According to the CRISIL Report, it’s the second-largest producer of fireside safety gear and methods in India when it comes to working earnings (income from operations) in Fiscal 2025 and the biggest exporter by worth (gear) in Fiscal 2025. The firm’s export gross sales have been in 49 nations as of the three months interval ended June 30, 2026 and greater than 90 nations as of Fiscal 2026. With greater than three many years of expertise, it has established itself as a globally acknowledged and dependable model.
In the early Nineties, important fireplace safety gear and methods reminiscent of deluge valves, alarm valves, and medium velocity water spray nozzles have been usually imported, with lack of Indian producers providing high-quality alternate options like UL Listed and FM Approved merchandise (Source: CRISIL Report). The Company is the primary Indian fireplace safety gear and methods producer to obtain UL Listing for deluge valves (1996) (Source: CRISIL Report). Since the graduation of its enterprise, HFPL has constantly centered on offering domestically manufactured fireplace safety gear and methods as import-substitutes. It can also be the primary Indian fireplace safety gear and methods producer to obtain FM approval for vary of merchandise utilized in low enlargement foam system specifically foam concentrates, bladder tanks, proportioners, topside discharge gadgets and foam water sprinkler discharge gadgets (Source: CRISIL Report).
Further, the corporate can also be the primary Indian firm centered on fireplace safety gear and methods manufacturing to obtain ASME U (stress vessels) stamp certification (Source: CRISIL Report). With 21 and 87 UL Listed and FM Approved certifications, as per UL product certifications and FM product certifications respectively, it has the very best variety of UL Listed and FM Approved product certifications amongst the fireplace safety gear centered friends in India as of September 2026 (Source: CRISIL Report).
As of June 30, 2026, its choices are unfold throughout 8 product classes, specifically – (a) sprinklers, alarm valves and equipment, (b) deluge valves, deluge skids and pre-action methods, (c) foam gear and suppression methods, (d) screens and monitor nozzles, (e) methods valves and equipment, (f) water spray nozzles, (g) {custom} engineered methods, and (h) fuel suppression methods, overlaying a large spectrum of (a) industrial finish use in sectors reminiscent of industrials, heavy engineering, aerospace, oil & fuel, refining and petrochemicals, energy & vitality, prescribed drugs, information centres, warehousing amongst others; and (b) residential and industrial finish use in sectors reminiscent of hospitality, healthcare, retail, schooling, banking and warehousing. HFPL additionally empaneled with varied clients throughout sectors the place it has presence.
HFPL operates two manufacturing services in Maharashtra, Jalgaon MIDC and Thane MIDC, spanning a mixed space of 8.50 acres. It has expanded the capability of Jalgaon facility, with one unit for manufacturing and one other for a devoted fireplace take a look at laboratory, industrial warehouse and R&D centre, admeasuring 2.50 acres, and are additionally establishing a warehouse at Wagle Estate, Thane, admeasuring 0.50 acres, which is anticipated to be accomplished by November 2026. In addition to its in-house manufacturing, the corporate additionally undertakes contract manufacturing of off-the-shelf merchandise in addition to white labelling to cater to various buyer necessities. In Fiscal 2026, it equipped its fireplace safety gear and methods to 2066 clients. The firm equipped fireplace safety gear and methods throughout 49 nations within the three-month interval ended June 30, 2026, and throughout greater than 90 nations between inception and March 31, 2026. This worldwide attain is supported by a distributor-led provide chain for worldwide markets and a Stockist mannequin for India.
The firm maintains a robust concentrate on high quality, mirrored within the absence of product remembers and a substitute charge of simply 0.01% over the three months interval ended June 30, 2026 and the previous three fiscals. Its R&D initiatives are directed towards next-generation applied sciences that improve efficiency, guarantee environmental compliance, and meet international certification requirements. The firm additionally makes a speciality of custom-engineered fireplace safety skids tailor-made to client-specific necessities and is the one Indian producer to supply sure superior methods, reminiscent of a next-generation pre-action system. HFPL’s innovation pipeline features a new deluge valve design, for which a patent utility is presently beneath course of. As on the date of this Red Herring Prospectus, it holds patents within the United States of America, India, Turkey and Saudi Arabia for “pressure operated fluid valve with configurable diaphragm arrangement”, and two design registrations in India for “diaphragm of fire protection valve”. It has additionally made a patent utility within the United Arab Emirates in respect of the identical.
The firm has equipped merchandise at a number of the key websites together with grasp stream nozzle installations at India’s house launch pad at Srihari Kota, fireplace safety gear (alarm valve, monitor, grasp stream nozzle) at India’s largest refinery at Jamnagar, fireplace safety gear (drain valve, water circulate detectors and so on.) for the brand new Indian parliament constructing, fireplace safety methods (deluge valves) at Saudi Aramco’s Ras Tanura Sea Island web site and fireplace safety gear (deluge valves, sprinklers and so on.) for Oman’s Integrated Power & Water Plant Project (Source: CRISIL Report). These initiatives spotlight each the worldwide acceptability and belief positioned in its gear and methods. It is each, India centered and export oriented, with a balanced income combine throughout home and worldwide markets.
Its key export locations embrace UAE, Saudi Arabia, Brazil, Turkey, Malaysia, and Indonesia. According to the administration, they’ve emerged because the world chief in important fireplace defend equipments and merchandise and their income posted on a mean 65% home and 35% international earnings for the reported intervals. This ratio will proceed going ahead and in addition enjoys most most well-liked provider of important fireplace safety methods standing. This phase has many entry limitations and thus, it does no see any main risk on competitors side. As of June 30, 2026, it had 279 staff on its payroll, and extra 253 contract employees in varied division. As of the mentioned date, its order guide stood at Rs. 158.60 cr.
Merchant Banker’s Track Record
The three BRLMs related to this problem have dealt with 74 public points up to now three fiscals, out of which 20 points closed under the provide value on itemizing date.
Conclusion
HFPL is among the main Indian producer and provider of important fireplace safety gear and methods. Its home income is 65% and export earnings are 35% for the reported intervals. The firm has highest numbers of UL and FM approval certification. Its order guide stood at Rs. 158.60 cr. as of June 30, 2026. The firm marked regular progress in its prime and backside strains for the reported intervals. Based on its latest common monetary information, the problem seems absolutely priced. Well-informed traders can park funds for medium to long run on this dividend paying firm.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is well known for reviewing public points and non-convertible debentures (NCDs) within the major market. Drawing on over three many years of market expertise and shut interplay with service provider bankers, his opinions concentrate on detailed elementary and monetary evaluation of corporations, with a particular emphasis on SME public points.
Disclaimer: The data offered herein is solely for instructional and informational functions and doesn’t represent a proposal, solicitation, or advice to purchase or promote any securities. Readers are suggested to seek the advice of a certified monetary advisor earlier than making any funding choices. Investments within the securities market are topic to market dangers. The creator doesn’t intend to put money into the securities mentioned.
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