HD Fire Protect's initial public offering has demonstrated exceptional investor demand, achieving 7.11 times subscription on the fourth day of bidding as of October 14. The issue received bids for 12,93,54,720 shares against 1,84,20,492 shares on offer, with the subscription status updated from the previous day's over 7 times subscription. Among investor categories, non-institutional investors led with 18.97 times subscription, while retail investors subscribed 5.34 times and qualified institutional buyers (QIBs) subscribed 1.05 times. The grey market premium has strengthened significantly to ₹34 per share according to market tracking platform InvestorGain, signaling potential listing gains of around 34% over the issue price of ₹258-271.
HD Fire Protect has established itself as a leader in fire protection equipment manufacturing with 21 UL Listed and 87 FM Approved certifications as of September 2026, the highest among Indian fire-protection-equipment-focused peers according to its prospectus. The company manufactures water-, foam- and gas-based fire-protection equipment for facilities including refineries, warehouses and data centres, with repeat customers contributing 85.2% of FY26 product revenue and customers associated with HD Fire for over five years accounting for 54.4%. As per Business Standard, the company's products hold global certifications and approvals, including UL Listing, FM Approval, CE, VdS, ASME U-Stamp and Lloyd's Register, making it the only fire-protection-focused Indian company to hold these certifications across its product portfolio. The company has a business legacy of over 36 years and supplies fire-protection equipment and systems to more than 90 countries. Contract-manufactured products contributed 36.71% of revenue in FY26, up from 31.13% in FY24, while the company operates at 94.1% capacity utilization for water-spray nozzles and 63.4% for foam equipment.
The anchor book allocation demonstrates robust institutional confidence in HD Fire Protect, with 56.52 lakh equity shares allocated to nine domestic mutual funds including SBI Mutual Fund, HDFC Asset Management Company, ICICI Prudential Asset Management Company, Aditya Birla Sun Life Asset Management Company, PGIM India, Bandhan Mutual Fund, and Mirae Asset. Bajaj Life Insurance and Axis Max Life Insurance subscribed to a combined 5.51 lakh shares worth ₹14.95 crore. Other prominent investors including Ashoka WhiteOak, Allianz Global Investors Fund, and Amundi Funds also participated in the anchor book. As per The Hindu BusinessLine, the IPO comprises an offer for sale (OFS) of 2.62 crore equity shares by promoters Harish Narshi Dharamshi and his wife Kusum Dharamshi, with the money raised going directly to selling shareholders since there is no fresh issue component. The company allotted 78.64 lakh equity shares to 25 funds at ₹271 per share, the upper end of the price band, with domestic mutual funds accounting for 71.88% of the total allocation through 17 schemes. The IPO is entirely an offer for sale with no fresh issue component, meaning the company will not receive any proceeds from the IPO.
HD Fire Protect reported a 6.4% year-on-year increase in profit to ₹116.8 crore for FY26, with revenue from operations rising 13.05% to ₹489.3 crore from ₹432.8 crore in the previous financial year. The company achieved a compound annual growth rate of 14.54% in revenue from FY24 to FY26, with operating EBITDA and net profit growing at 18.79% and 15.25% respectively. For the three months ended June 2026, the company reported a profit of ₹23.8 crore on revenue of ₹109 crore. The domestic market contributed 65% of the company's revenue in FY26, while exports accounted for the remaining 35%. The company's median return on equity (RoE) and return on capital employed (RoCE) stood at 29.63% and 39.63% respectively over FY24-FY26. However, the latest year showed some pressure with operating EBITDA margin narrowing from 31.89% to 30.75%, while operating cash flow fell 5.9% and receivables jumped 62.2% to ₹93.71 crore, extending the cash conversion cycle from 83 to 102 days.
The ₹712.1-crore IPO has a price band of ₹258-271 per share and will remain open for subscription until October 15. Investors can bid for a minimum of 55 equity shares and in multiples of 55 thereafter, with the minimum investment for retail investors standing at ₹14,905 at the upper price band. The allotment of shares is expected to be finalised on October 16, while the company's shares are scheduled to list on the stock exchanges on October 21. The issue comprises an offer for sale (OFS) of 2.62 crore equity shares with no fresh issue component, meaning the company will not receive any proceeds from the IPO. The company has reserved 50% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors. Additionally, the company has reserved ₹1.75 crore worth of shares for eligible employees, who will receive a discount of ₹25 per share to the final offer price. Ambit, Anand Rathi Advisors, and IIFL Capital Services are the book-running lead managers for the issue.
