HD Fire Protect Ltd. IPO

HD Fire Protect

• HD Fire Protect is coming out with a 100% book building; initial public offering (IPO) of 2,62,84,500 shares of face value Rs 5 each in a price band Rs 258-271 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on October 13, 2026 and will close on October 15, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 5 and is priced 51.60 times of its face value on the lower side and 54.20 on the higher side.
• Book running lead managers to the issue are Ambit, IIFL Capital Services and Anand Rathi Advisors.
• Compliance officer for the issue is Sundaram Balasubramanian Iyer. 

Profile of the company

HD Fire Protect is an Indian manufacturer and supplier of fire protection equipment and systems, offering a comprehensive portfolio spanning water, foam, and gas-based fire suppression systems, which are also generally known as firefighting products. It develops majority of its products in-house with proprietary designs to meet national and international standards, serving high-hazard industrial applications as well as residential and commercial sectors. The company was second-largest manufacturer of fire protection equipment and systems in India in terms of operating income (revenue from operations) in Fiscal 2025 and the largest exporter by value (equipment) in Fiscal 2025. It has export sales in 49 countries as of the three months period ended June 30, 2026 and more than 90 countries as of Fiscal 2026. With more than three decades of experience, it has established itself as a globally recognized and reliable brand.

As of June 30, 2026, its offerings are spread across 8 product categories, namely - (a) sprinklers, alarm valves and accessories, (b) deluge valves, deluge skids and pre-action systems, (c) foam equipment and suppression systems, (d) monitors and monitor nozzles, (e) systems valves and accessories, (f) water spray nozzles, (g) custom engineered systems, and (h) gas suppression systems, covering a wide spectrum of (a) industrial end use in sectors such as industrials, heavy engineering, aerospace, oil & gas, refining and petrochemicals, power & energy, pharmaceuticals, data centres, warehousing amongst others; and (b) residential and commercial end use in sectors such as hospitality, healthcare, retail, education, banking and warehousing. It is also empanelled with various customers across sectors where it has presence.

It operates two manufacturing facilities in Maharashtra, Jalgaon MIDC and Thane MIDC, spanning a combined area of 8.50 acres. It has expanded the capacity of its Jalgaon facility, with one unit for manufacturing and another for a dedicated fire test laboratory, industrial warehouse and R&D centre, admeasuring 2.50 acres, and are also constructing a warehouse at Wagle Estate, Thane, admeasuring 0.50 acres, which is expected to be completed by November 2026. In addition to its in-house production, it also undertakes contract manufacturing of off-the-shelf products as well as white labelling to cater to diverse customer requirements. In Fiscal 2026, it supplied its fire protection equipment and systems to 2,066 customers. it supplied its fire protection equipment and systems across 49 countries in the three-month period ended June 30, 2026, and across more than 90 countries between inception and March 31, 2026. This international reach is supported by a distributor-led supply chain for international markets and a stockist model for India.

Proceed is being used for: 

• Carrying out the offer for sale of equity shares of face value of Rs 5 each by the promoter selling shareholders
• Achieving the benefits of listing the equity shares on the Stock Exchanges

Industry overview

The Indian fire protection equipment market expanded at a CAGR of 12% between fiscals 2020 and 2026 to Rs 109 billion, outperforming the global fire protection equipment market in terms of growth rate (7% CAGR between 2020-2025), and is expected to clock a CAGR of 10-12% between fiscals 2026 and 2031 to reach Rs 175-195 billion. The market comprises both international and domestic players. International players include Bosch, Gunnebo, Honeywell, Johnson Controls, Siemens, Victaulic and Viking, while domestic players include Ceasefire Industries, De's Technico, Firetech Equipment & Systems, Fluid Pumps & Equipment, HD Fire Protect, Newage Fire Fighting Company, Safex Fire Services and Vimal Fire Controls. The fire detection segment is traditionally dominated by international brands owing to wider presence across the detection value chain, while the fire suppression segment has large and small domestic players operating in commoditised products such as fire extinguishers.

In fiscal 2026, the fire suppression system segment (fire sprinklers, hydrants, deluge valves, gas-based systems, foam equipment & suppression systems, etc) accounted for 75% of the total market and was valued at Rs 82 billion, while the fire detection segment (fire alarms and panels, smoke detectors, heat detectors, etc) formed 25% and was valued at Rs 27 billion. Between fiscals 2026 and 2031, the fire suppression segment is expected to clock 11.0-13.0% CAGR to reach Rs 135-155 billion, with a 75-80% share of the overall fire protection equipment market in India. India has witnessed significant growth in the fire protection equipment manufacturing sector in recent years, driven by increasing demand from various industries, government regulations and rising awareness about fire safety. Accordingly, players are expanding their existing manufacturing facilities in India to increase production capacity and cater to incremental demand. Manufacturers are investing in research and development to develop new and innovative fire protection products such as advanced fire detection systems and suppression systems.

Further, infrastructure related construction capex in India is estimated to have increased by 1.4-1.6 times from Rs 37-39 trillion over fiscal 2022 to 2026 to reach Rs 55-58 trillion between fiscals 2027 and 2031, mainly driven by increased spending on infrastructure projects such as roads and railways, supported by both central and state government investments. Within infrastructure, construction expenditure in metro projects is expected to reach Rs 2.2-2.4 trillion during fiscal 2027 to fiscal 2031, up 1.6-1.7 times over fiscal 2022 to fiscal 2026, garnering the second-largest share in urban infrastructure investments, which includes construction-intensive mass rapid transit system (MRTS), bus rapid transit system (BRTS), water supply and sanitation (WSS) projects, smart cities and related infrastructure development. Hence, overall increase in the construction capex of the infrastructure segment, including in segments such as power, warehouse and cold storage, metros and airports, which require comprehensive fire protection infrastructure, will drive demand for fire protection equipment. 

Pros and strengths 

Strong technical expertise and entry barriers: The company has a business legacy of over 36 years, with its fire protection equipment and systems exported to more than 90 countries. It has developed technical expertise, robust manufacturing capabilities and a global presence in the fire protection equipment industry, which is characterised by substantial and enduring entry barriers. These entry barriers arise from a combination of factors, including the requirement for specialised and internationally recognised product certifications (such as UL Listed, FM Approved, ASME U Stamp, and CE Marking), each of which certifications typically, often require 6-24 months for new product lines. Added to this are stringent regulatory compliance requirements across jurisdictions, long product development and testing cycles, and complex, capital-intensive manufacturing processes.

Diversified fire protection solutions across industries: The company offers a comprehensive portfolio of fire protection equipment and systems, covering water, foam, and gas-based suppression technologies. As of June 30, 2026, its equipment and systems span eight product categories namely - (a) sprinklers, alarm valves and accessories, (b) deluge valves, deluge skids and pre-action systems, (c) foam equipment and suppression systems, (d) monitors and monitor nozzles, (e) systems valves and accessories, (f) water spray nozzles, (g) custom engineered systems, and (h) gas suppression systems and have been supplied to over 90 countries across sectors including industrials, heavy engineering, aerospace, oil & gas, refining and petrochemicals, power & energy, pharmaceuticals, data centres, warehousing amongst others.

Diversified customer base and industry exposure: The company has built a robust and diversified customer base of over 905 clients across India and international markets, with long-standing relationships spanning industrials, heavy engineering, aerospace, oil & gas, refining and petrochemicals, power & energy, pharmaceuticals, data centres, warehousing amongst others. The company’s broad sectoral and geographical distribution reduces its dependence on any single client or industry, enhancing its resilience against regional and industry-specific downturns. For instance, in the event of a slowdown in certain metropolitan regions such as Delhi NCR due to regulatory restrictions on new building permits or delays in environmental clearances, it continues to secure orders from ongoing infrastructure and industrial projects in other states, thereby ensuring business continuity.

Vertically integrated manufacturing capabilities: The company is a vertically integrated manufacturer with in-house capabilities spanning the entire value chain, from research and development to designing, casting, machining, assembly, testing, painting, and quality control. Critical processes such as foundry operations are carried out internally, ensuring that every stage of production is managed under one roof. This integration enables it to maintain greater control over product quality, reduce lead times, and ensure strict compliance with global standards. It operates one such vertically integrated manufacturing facility in Jalgaon, Maharashtra and serve a diversified base of over 905 customers as of the three months period ended June 30, 2026. This integration enables greater control over product quality, lead time, and compliance across all stages of production.

Risks and concerns

Significant revenue exposure to international markets: The company’s products are sold to customers in India and overseas to over 90 countries, with Middle East and Rest of Asia being few of the key markets. As a result, the company is subject to several legal, regulatory, and compliance requirements across jurisdictions, including import-export regulations, local product certifications, and foreign currency controls. It generated 32.78%, 34.69%, 36.24% and 33.33%, of its revenue from operations from outside India for the three months period ended June 30, 2026, and Fiscals 2026, 2025, and 2024, respectively. Any adverse changes in the conditions affecting the industries in global markets in which its products are supplied, including its key markets such as Middle East and Rest of Asia, could materially adversely affect its business, results of operations, financial condition, cash flows and future prospects.

Reliance on a limited number of suppliers: As of the three months period ended June 30, 2026 and Fiscals 2026, 2025 and 2024, the company’s top 10 suppliers contributed to 59.28%, 47.76%, 42.90% and 35.59% of the Total Expenses, respectively. It relies on a limited number of third-party suppliers to meet its raw material and contract manufactured goods requirements, and it does not have any long-term purchase agreements or firm commitments with its suppliers. As a result, any loss of or reduced support from one or more such suppliers could adversely impact its business, results of operations, and financial condition.

Geographical concentration of manufacturing facilities: The company’s manufacturing facilities are located in Maharashtra, India, and it is dependent on them for a 61.02%, 63.49%, 65.80% and 67.94%, of its Revenue from Operations for the three months period ended June 30, 2026 and Fiscals 2026, 2025, and 2024, respectively, which exposes its operations to potential geographical concentration risks arising from local and regional factors and any disruption, breakdown or shutdown of its facilities may adversely affect its business, results of operations, financial condition, cash flows and future prospects.

Dependence on repeat customers without long-term contracts: The company has garnered 79.76%, 85.20%, 86.30%, and 88.05% of its revenue from operations has been from repeat customers, for the three months period ended June 30, 2026, Fiscals 2026, 2025, and 2024, respectively. Further, it relies on short-term work orders and do not have long-term contracts or exclusivity arrangements with its customers which exposes it to demand volatility, procurement risks, and customer concentration, which may adversely affect its business, financial condition, results of operations, and cash flows.

Outlook

HD Fire Protect is an Indian manufacturer and supplier of fire protection equipment and systems, offering water, foam and gas-based fire suppression solutions. The company has strong product certification and quality track record. It also has advanced design, manufacturing and R&D capabilities. On the concern side, the company faces risks arising from supplier concentration, geographical dependence on manufacturing facilities in Maharashtra, and reliance on repeat customers. The absence of long-term supplier agreements, customer contracts and exclusivity arrangements exposes it to supply disruptions, operational uncertainties and demand volatility. Any adverse developments in these areas could materially affect its business, financial condition, results of operations and cash flows.

The issue has been offering 2,62,84,500 shares in a price band of Rs 258-271 per equity share. The aggregate size of the offer is around Rs 678.14 crore to Rs 712.31 crore based on lower and upper price band respectively. Minimum application is to be made for 55 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations increased by 13.05% to Rs 4,892.81 million for Fiscal 2026 from Rs 4,327.99 million for Fiscal 2025. The growth was primarily attributable to sustained demand in the domestic market, with regulatory compliance requirements supporting higher sales volumes. Moreover, the company’s profit after tax for the period increased by 6.61% to Rs 1,167.86 million for Fiscal 2026 from Rs 1,097.18 million for Fiscal 2025.

Going forward, the company’s strategy is to build and expand this portfolio across priority markets, creating a strong foundation of proprietary technologies that safeguard its differentiated solutions. By securing patents in multiple jurisdictions, it is not only enhancing its ability to commercialize globally but also ensure exclusivity in key product categories where performance, reliability, and compliance are paramount. This approach reinforces its leadership in fire protection technologies by protecting innovations that improve safety and operational efficiency, while also reducing the risk of imitation. The strength of its intellectual property provides it with a durable competitive advantage, instils confidence among customers and partners, and supports long-term growth by enabling it to deliver advanced, reliable, and compliant solutions across global markets.