Hi-Tech Flow Solutions Ltd has filed preliminary papers with markets regulator Sebi to raise funds through an initial public offering. According to the draft red herring prospectus (DRHP) filed on Thursday, the proposed IPO comprises a fresh issue of up to ₹300 crore and an offer-for-sale by promoters and an investor. The New Delhi-based company may consider a pre-IPO placement for up to ₹60 crore, which would reduce the fresh issue size if completed. Under the offer-for-sale component, promoters Ajay Kumar Bansal and Vipul Bansal, and investor The Wealth Company Alternates Trust - India Inflection Opportunity Fund, will offload their stake. Ajay Kumar Bansal is offering shares up to ₹75 crore and Vipul Bansal up to ₹25 crore, while the investor is offering up to 20,268,225 shares. The Wealth Company Asset Management is the only public shareholder in the company, while the remainder 85.33 percent stake is held by the promoters. As reported by the company, the fresh issue proceeds will be used for proposed expansion by establishing API-grade HSAW pipe manufacturing unit along with a 3LPE coating unit within its existing Nagpur facility, debt clearance and general corporate purposes.
As reported by The Economic Times, proceeds from the fresh issue worth ₹125.9 crore will be utilized for setting up an API-grade HSAW pipe manufacturing unit along with a 3LPE coating unit within its existing Nagpur facility. Additionally, ₹90 crore will be used for debt payment, with a portion allocated for general corporate purposes. The company's manufacturing facilities currently have a total installed capacity of 160,000 metric tonnes per annum (MTPA), comprising 40,000 MTPA at Sanand Facility and 120,000 MTPA at its Nagpur Facility. During the last three fiscals, the company supplied 154,000 MT of HSAW pipes on aggregate basis. The company is currently undertaking an expansion at its Nagpur facility from internal accruals, which is expected to be completed by June 2027, adding 30,000 MTPA to bring total annual installed capacity to 190,000 MTPA. The proposed expansion under the IPO's objects will add another 1.2 lakh MTPA, taking the overall capacity of the Nagpur facility to 2.7 lakh MTPA.
According to the CareEdge Report, Hi-Tech Flow Solutions provides flow solution products with varied applications by manufacturing and supplying Helical Submerged Arc Welded (HSAW) pipes across 17 states and 2 Union territories in India. The company's HSAW pipes serve diverse applications with primary focus on large-diameter water-transmission pipelines used in bulk water-supply systems, irrigation networks, inter-basin river-link pipelines, municipal water distribution networks, dam-based irrigation systems, and sewerage and urban-infrastructure projects. The company is expanding its product portfolio to cater to growing demand in the oil and gas sector, and is also supplying pipes for airport, flyovers, power projects, HVAC utility networks, and data centre infrastructure projects. As per the CareEdge Report, rapid expansion of data centre infrastructure, particularly hyperscale and artificial intelligence (AI) data centres, may create additional demand opportunities for HSAW pipes used in these applications. The company operates on a business-to-business (B2B) model and serves private engineering, procurement and construction contractors involved in the execution of large-scale pipeline and infrastructure projects.
As reported by Business Standard, Hi-Tech Flow Solutions reported revenue from operations of ₹417 crore and a net profit of ₹36.4 crore during FY26. The company, incorporated in 1993, operates through its manufacturing facilities at Sanand, Gujarat and Nagpur, Maharashtra. The company is a registered vendor with multiple infrastructure authorities engaged in water supply, sewerage and urban development projects, including state level Public Health Engineering Department, Jal Nigams and state water supply and Sewerage Boards. However, sales are primarily made to EPC contractors who procure and utilize its products for execution of projects awarded by such government and quasi-government authorities. The company competes with listed peers such as Ratnamani Metals & Tubes, Man Industries, Welspun Corp and Jindal Saw. According to the latest financial data, Hi-Tech Flow reported a 50.2 percent year-on-year increase in profit to ₹36.4 crore for the year ended March 2026, from ₹24.3 crore in the previous year, while revenue during the period rose 40 percent to ₹417.2 crore from ₹298.3 crore a year earlier.
InCred Capital Financial Services and Pantomath Capital Advisors are serving as the book-running lead managers, while MUFG Intime India is the registrar of the issue. The offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively. The filing represents a significant step toward the company's public market debut, though specific timeline details and pricing structure have not been disclosed in the current filing. As reported by the company, the company expects to achieve the benefit of listing of the equity shares on the stock exchanges, enhancement of its company's visibility and brand name amongst existing and potential customers, and creation of a public market for the equity shares in India. Shares of the company will be listed on the National Stock Exchange (NSE) and the BSE. There could be some selling on the listing day as certain pre-IPO investors, including eligible AIFs, can monetise their holdings. Other pre-IPO shareholders remain subject to a six-month lock-in period, which could create some temporary supply and provide a buying opportunity for long-term investors.
