Company Overview
HD Fire Protect Limited is a leading Indian manufacturer of fire protection equipment and systems, operating as the country's second-largest player and largest exporter in this segment. The company maintains manufacturing facilities in Jalgaon and Thane, Maharashtra, and has established a global presence with exports to over 90 countries. Its comprehensive product portfolio includes fire suppression systems, hydrants, sprinklers, alarm systems, and related accessories, serving industrial, commercial, residential, and infrastructure sectors.
Offer Details
The company is conducting an Initial Public Offering (IPO) comprising an Offer for Sale of 26,284,500 equity shares (15% of post-offer capital) at a price band of ₹258-271 per share, aggregating ₹7.12 billion. The offer is entirely by promoter selling shareholders Harish Narshi Dharamshi (8.98 million shares) and Kusum Harish Dharamshi (17.30 million shares), with no fresh issue component. The IPO includes employee reservation of 71,138 shares with ₹25 discount and is scheduled for October 13-15, 2026, with listing on both BSE and NSE.
Financial Performance
HD Fire Protect has demonstrated strong financial growth with revenue increasing from ₹3.73 billion in FY24 to ₹4.89 billion in FY26, while profit after tax grew from ₹879 million to ₹1.17 billion during the same period. The company maintains healthy profitability with EBITDA margin of 30.75% and PAT margin of 23.12% in FY26. Q1 FY27 performance shows continued growth with ₹1.09 billion revenue and ₹239 million profit. The balance sheet remains debt-free with net worth of ₹4.01 billion as of June 2026.
Business Operations & Market Position
The company operates in a high-barrier industry requiring stringent certifications including UL Listing, FM Approval, CE Marking, and ASME U Stamp. It serves 905 customers in Q1 FY27 with top 10 customers contributing 27.57% of revenue. The order book stands at ₹1.59 billion as of June 2026. The global fire protection equipment market is valued at $62 billion (2025) with expected growth to $85-90 billion by 2030, while the Indian market is projected to grow from ₹109 billion (FY26) to ₹175-195 billion by FY31 at 10-12% CAGR.
Risk Factors
Key risks include product liability concerns, dependence on international markets (32.78% of Q1 FY27 revenue), supplier concentration (top 10 suppliers contributed 59.28% of expenses), and significant reliance on Chinese imports (24.98% of purchases). Other risks include manufacturing facility concentration, working capital challenges, foreign exchange exposure, and complex regulatory compliance requirements across multiple jurisdictions. The company faces ongoing legal proceedings involving ₹71.02 million in disputes.
Use of Proceeds & Expansion Plans
Since the offer is entirely an Offer for Sale, the company will not receive any proceeds. However, HD Fire Protect has invested ₹226.92 million in expansion projects and plans additional ₹50 million over the next two months for capacity expansion at Jalgaon and Thane facilities, including new manufacturing units, fire test laboratories, and R&D centers.
Management & Promoters
The promoter group holds 100% pre-IPO stake, led by Harish Narshi Dharamshi (56.13%), Kusum Harish Dharamshi (17.83%), Miheer Sadanand Ghotikar (10.49%), Parika Miheer Ghotikar (6.62%), and Anik Narendra Dharamshi (4.26%). Post-IPO, promoter holding will reduce to approximately 85%. The management team includes experienced professionals with technical expertise in fire protection systems.
Regulatory Approvals & Compliance
The IPO has received SEBI observations (January 29, 2026) and in-principle approvals from BSE and NSE (November 6, 2025). The company maintains various environmental permits and international certifications required for operations. Book Running Lead Managers are Ambit Private Limited, Anand Rathi Advisors Limited, and IIFL Capital Services Limited, with MUFG Intime India Private Limited as registrar to the offer.