HD Fire Protect IPO: What To Know, Details, Pricing, GMP

A debt-free, Thane-based fire-protection leader opens its Rs 712.31 crore mainboard issue on October 13 

HD Fire Protect Ltd (HDFPL) operates in a high-barrier, high-growth niche — the manufacture of fire-protection equipment and fire-suppression systems across water-, foam- and gas-based technologies.

It’s a play on India’s tightening fire-safety codes and the surge in fire-protection demand from data centres, warehouses, refineries and airports. Per CRISIL, HDFPL is India’s second-largest player and largest exporter in this segment.

The product portfolio is comprehensive and certification-heavy. HDFPL covers eight product categories spanning water, foam and gas suppression — sprinklers, valves, foam systems, monitors/nozzles, skids and gas-suppression systems.

Its standout competitive asset is its certification profile: it holds 21 UL Listed and 87 FM Approved products — the strongest among Indian fire-protection peers — plus Saudi Aramco approvals and vendor empanelments that take years to build, creating a genuine moat.

The export franchise is substantial. Around 35% of sales come from exports to 90+ countries, delivered through 22 distributors, white-labelling arrangements and direct supply. Its customer base is diversified and long-standing, with low concentration and strong repeat business — the kind of structural stickiness that comes from being a certified, trusted supplier in a safety-critical category.

The manufacturing and financial setup is a key strength. HDFPL makes its products at two Maharashtra plants — a vertically-integrated Jalgaon unit and a Thane unit.

Crucially, it is debt-free, and is expanding both plants entirely from internal accruals: a completed 2.5-acre second unit at Jalgaon (with a fire-test lab and R&D centre) and a new Thane facility due by November 2026 — growth capacity already in place, with no debt.

The business began as a partnership firm in 1990 (set up by Harish Dharamshi), was incorporated in 1997, and took over the firm in 2005. The promoters are Harish Narshi Dharamshi, Kusum Harish Dharamshi, Miheer Sadanand Ghotikar, Parika Miheer Ghotikar and Anik Narendra Dharamshi.

Issue Details

The issue is a pure Offer for Sale of 2.628 crore shares by the promoters — so there is no fresh issue, and the company receives no proceeds; the entire amount goes to the selling promoters, and the note explicitly flags that promoters have taken sizeable payouts before the IPO. Post-issue, promoter holding falls from 100% to 85%, with public shareholding at 15%. There is a small employee reservation (~Rs 1.75 crore).

Price Band Analysis

At the upper band of Rs 271, on FY26 EPS of Rs 6.66 the issue is valued at a P/E of about 40.66x — the same pre- and post-issue (since it’s a pure OFS) — with a P/B of ~12.6x, EV/EBITDA of ~31.5x and EV/Sales of ~9.7x, for an implied market cap of Rs 4,748.73 crore.

GMP Watch

Grey-market interest has been healthy, if easing from its peak. In tracked data, the HD Fire Protect IPO GMP ranged from a low of ₹40 to a high of ₹90 (October 8), and stood at around ₹63–73 (~23–27% premium) as of October 9 — implying an estimated listing price near ₹334–344 over the Rs 271 upper band.

Financial Performance

HDFPL delivered FY26 revenue of Rs 489 crore, EBITDA of Rs 150 crore and PAT of Rs 117 crore — with an excellent 30.8% EBITDA margin and 23.9% PAT margin, exceptional for a manufacturing business and reflecting the certified, high-value product mix. Return ratios are outstanding — RoE of 31.0% and RoCE of 37.6% — on an essentially debt-free balance sheet (D/E 0.0).

over FY23–FY26, EBITDA grew at an 18.7% CAGR against 14.7% for revenue, lifting the EBITDA margin from 27.8% to 30.8%.

Over four years, top line grew 14.7% CAGR, EBITDA 18.7% and PAT 18.5%, with average four-year RoE of 27.4% and RoCE of 32.8%.

The order book nearly doubled to Rs 134.4 crore in FY26 and reached Rs 158.6 crore by June 2026. With new Jalgaon and Thane capacity filling up and the mix shifting toward certified high-value products (fluorine-free foam, pre-action systems), margins have further room to expand. Working-capital cycles are reasonable (avg ~52 receivable days, 63 inventory days, 20 payable days).

Peer Comparison

There are no peer comparisons.

According to a note by Choice Broking (Choice Equity Broking/Choice India), “HDFPL is India’s second-largest and most certified maker of fire protection equipment… in an industry where certifications and vendor empanelment take years to build. The opportunity ahead is large… the order book nearly doubled to Rs. 134.4cr in FY26 and reached Rs. 158.6cr by June 2026. Growth capacity is already in place… funded from internal accruals, with no debt.”

“As volumes rise, the business is showing operating leverage… EBITDA margin rose from 27.8% to 30.8%… At the upper band, the issue is priced at 40.66x based on FY26 EPS of Rs. 6.66… HDFPL offers about 30% RoE, a debt-free balance sheet and a stronger entry barrier. Given the long growth runway, funded expansion and margin upside, we recommend a ‘SUBSCRIBE FOR LONG-TERM’ rating on the issue.”

Risks to Consider

The pure-OFS structure is the headline caveat. The company receives no proceeds — the entire Rs 712 crore goes to the selling promoters, who have taken sizeable payouts before the IPO — so this is a monetisation/listing event, not a growth-funding one (though the expansion is already funded from accruals).

Product-failure risk is critical and category-specific. In fire protection, a product failure can be extremely costly — reputationally, financially and legally — given the safety-critical nature of the equipment; quality lapses could have outsized consequences.

Import and supplier dependence. The business relies heavily on imports and a few key suppliers for raw materials/components — so supply disruption, price volatility or forex swings could hit production and margins.

Certifications are vital — and a double-edged sword. The UL/FM/Aramco certifications are the moat, but maintaining them is essential; any lapse, revocation or failure to renew would directly damage the business and its export access.

Full valuation. At ~40.7x FY26 earnings, the pricing embeds the quality and growth — so any slowdown in order flow, margin reversion or execution hiccup would expose the premium multiple.

Competition and sector-demand dependence. The segment is competitive, and demand is tied to construction, infrastructure, data-centre and industrial-capex cycles (and to continued tightening of safety codes).