HD Fire Protect IPO Day 2: GMP signals 34% listing gain; key details inside
The HD Fire Protect IPO entered its second day of subscription with a grey market premium (GMP) of 34%, suggesting potential listing gains, though GMP is not a reliable guarantee. The Rs 712.31-crore issue was subscribed 4.62 times on Day 1, with ...
By Ritesh Presswala, ETMarkets.com |
ETMarkets.com
The HD Fire Protect IPO entered its second day of subscription with a GMP of 34%.
The initial public offering (IPO) of HD Fire Protect entered its second day of subscription on Thursday, October 15, amid strong investor interest. The issue's grey market premium (GMP) currently stands at 34%, indicating the possibility of substantial listing gains over the issue price. However, GMP is an unofficial indicator and does not guarantee listing performance.
On Day 1, the IPO was subscribed 4.62 times overall against 1.84 crore shares on offer, while the retail investor portion was subscribed 3.78 times.
The Rs 712.31-crore HD Fire Protect IPO is entirely an offer for sale (OFS) of 2.63 crore equity shares. Since the issue comprises only an OFS, the company will not receive any proceeds from the offering, with the entire amount going to the selling shareholders.
The company has fixed the price band at Rs 258–271 per equity share, with a lot size of 55 shares. Retail investors can apply for a minimum of one lot, requiring an investment of Rs 14,905 at the upper end of the price band.
The IPO comprises 2,62,84,500 equity shares offered by two promoter selling shareholders. Harish Narshi Dharamshi will sell 89,83,700 shares worth Rs 243.46 crore, while Kusum Harish Dharamshi will offload 1,73,00,800 shares valued at Rs 468.85 crore. Together, the two promoters will divest shares worth Rs 712.31 crore through the public issue.
The share allotment is expected to be finalised on October 16, 2026. The company's equity shares are scheduled to list on the National Stock Exchange (NSE) and the BSE on October 21, 2026.
The IPO's floor price is 51.60 times the face value of the equity shares, while the cap price is 54.20 times the face value. Eligible employees applying under the employee reservation portion will receive a discount of Rs 25 per equity share.
Based on diluted earnings per share (EPS) for FY26, the company's price-to-earnings (P/E) ratio stands at 38.74 times at the lower end of the price band and 40.69 times at the upper end. In comparison, the average P/E ratio of its industry peer group is 62.95 times.
Ambit Pvt. Ltd., Anand Rathi Advisors Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the issue, while MUFG Intime India Pvt. Ltd. is the registrar.
The Retail Individual Investors (RIIs) portion was subscribed 3.78 times against 91.74 lakh shares offered, while the Non-Institutional Investors (NIIs) category saw 11.38 times subscription against 39.32 lakh shares.
The Qualified Institutional Buyers (QIBs) segment was subscribed 1.04 times against 52.42 lakh shares on offer.
With over three decades of experience, the Company has exported to more than 90 countries since inception and 49 countries during the three months ended June 30, 2026. As of September 2026, it had 21 UL Listed and 87 FM Approved product certifications. The Company operates two manufacturing facilities in Jalgaon and Thane, Maharashtra, spread across approximately 8.50 acres, along with a fire test laboratory and R&D facilities.
In Fiscal 2026, HD Fire Protect supplied products to 2,066 customers. Its revenue from operations increased from Rs 3,729.53 million in Fiscal 2024 to Rs 4,892.81 million in Fiscal 2026, representing a CAGR of 14.54%. Its order book stood at Rs 1,586.01 million as of June 30, 2026. As of the same date, the Company had 279 permanent employees and 253 contractual employees.
Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
On Day 1, the IPO was subscribed 4.62 times overall against 1.84 crore shares on offer, while the retail investor portion was subscribed 3.78 times.
The Rs 712.31-crore HD Fire Protect IPO is entirely an offer for sale (OFS) of 2.63 crore equity shares. Since the issue comprises only an OFS, the company will not receive any proceeds from the offering, with the entire amount going to the selling shareholders.
The company has fixed the price band at Rs 258–271 per equity share, with a lot size of 55 shares. Retail investors can apply for a minimum of one lot, requiring an investment of Rs 14,905 at the upper end of the price band.
The IPO comprises 2,62,84,500 equity shares offered by two promoter selling shareholders. Harish Narshi Dharamshi will sell 89,83,700 shares worth Rs 243.46 crore, while Kusum Harish Dharamshi will offload 1,73,00,800 shares valued at Rs 468.85 crore. Together, the two promoters will divest shares worth Rs 712.31 crore through the public issue.
The share allotment is expected to be finalised on October 16, 2026. The company's equity shares are scheduled to list on the National Stock Exchange (NSE) and the BSE on October 21, 2026.
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The IPO's floor price is 51.60 times the face value of the equity shares, while the cap price is 54.20 times the face value. Eligible employees applying under the employee reservation portion will receive a discount of Rs 25 per equity share.
Based on diluted earnings per share (EPS) for FY26, the company's price-to-earnings (P/E) ratio stands at 38.74 times at the lower end of the price band and 40.69 times at the upper end. In comparison, the average P/E ratio of its industry peer group is 62.95 times.
Ambit Pvt. Ltd., Anand Rathi Advisors Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the issue, while MUFG Intime India Pvt. Ltd. is the registrar.
HD Fire Protect IPO subscription details
On Day 1, the IPO was subscribed 4.62 times overall against the 1.84 crore shares on offer.ADVERTISEMENT
The Retail Individual Investors (RIIs) portion was subscribed 3.78 times against 91.74 lakh shares offered, while the Non-Institutional Investors (NIIs) category saw 11.38 times subscription against 39.32 lakh shares.
The Qualified Institutional Buyers (QIBs) segment was subscribed 1.04 times against 52.42 lakh shares on offer.
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HD Fire Protect IPO GMP Today
The latest recorded grey market premium (GMP) for HD Fire Protect IPO stands at Rs 91 per share, or around 34% above the upper end of the price band of Rs 271. Based on this premium, the estimated listing price is Rs 362 per share. GMP Note: The grey market premium is an unofficial indicator of market sentiment and may fluctuate before listing. It does not guarantee the actual listing price or listing gains.HD Fire Protect financial performance
HD Fire Protect Ltd.'s total income increased 12% year-on-year to Rs 505 crore in Fiscal 2026 from Rs 451 crore in Fiscal 2025. Profit after tax (PAT) rose 6% to Rs 117 crore in Fiscal 2026 from Rs 110 crore in the previous fiscal.About HD Fire Protect
Incorporated in April 1997, HD Fire Protect Ltd. is an Indian manufacturer and supplier of fire protection equipment and systems, offering water-, foam- and gas-based fire suppression solutions. Its portfolio spans eight product categories, including sprinklers, alarm and deluge valves, foam equipment, monitors and nozzles, water spray nozzles, custom-engineered systems and gas suppression systems. The Company serves industrial, residential and commercial sectors, including oil and gas, petrochemicals, power, engineering, aerospace, pharmaceuticals, data centres, hospitality and healthcare. Most of its products are developed in-house and are designed to meet national and international standards.With over three decades of experience, the Company has exported to more than 90 countries since inception and 49 countries during the three months ended June 30, 2026. As of September 2026, it had 21 UL Listed and 87 FM Approved product certifications. The Company operates two manufacturing facilities in Jalgaon and Thane, Maharashtra, spread across approximately 8.50 acres, along with a fire test laboratory and R&D facilities.
In Fiscal 2026, HD Fire Protect supplied products to 2,066 customers. Its revenue from operations increased from Rs 3,729.53 million in Fiscal 2024 to Rs 4,892.81 million in Fiscal 2026, representing a CAGR of 14.54%. Its order book stood at Rs 1,586.01 million as of June 30, 2026. As of the same date, the Company had 279 permanent employees and 253 contractual employees.
Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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