HD Fire IPO: A Niche Business With a Demanding Price Tag? Price Band, Valuation, Offer for Sale, Financials, Anchor Investors and Risks Explained
- October 13, 2026
- Posted by: Ankit Jaiswal
- Category: News
HD Fire IPO: 13 to 15 Oct 2026, price band Rs 258 to Rs 271, lot 55 shares, 100% offer for sale of Rs 712.31 crore. Market cap about Rs 4,748.73 crore, about 40.7x FY26 profit of Rs 116.79 crore. Anchor investors put in Rs 213.11 crore. Listing 21 Oct.
Quick Answer
HD Fire IPO opens on 13 October and closes on 15 October 2026 at a price band of Rs 258 to Rs 271, a 100% offer for sale of Rs 712.31 crore that values the company at about Rs 4,748.73 crore, or about 40.7 times FY26 profit. The business is a niche maker of fire suppression equipment with no debt, a 30.17% return on equity and 34.69% of revenue from exports, but FY26 profit grew only 6.4% and the Q1 FY27 EBITDA margin was 27.26% against 30.75% in FY26. The valuation is below the median of loosely comparable listed peers at 51.39 times, yet none of those peers is a pure fire protection company, and the promoters take all of the proceeds. Eight brokerages say Subscribe in one report and anchor investors put in Rs 213.11 crore, but check whether the price tag fits your horizon.
HD Fire IPO is the Mumbai-based fire protection equipment maker’s issue that opens today, and the Mint Premium headline asks whether a niche business comes with a demanding price tag. The answer depends on how you value a profitable, debt-free exporter whose profit growth has slowed.
This guide covers the HD Fire IPO dates and price band, what the company does, its financials, valuation against peers, the promoter payouts before the issue, the anchor investors and the risks.
The company, HD Fire Protect, was incorporated in 1997 and sells water, foam and gas based fire suppression systems to industrial and infrastructure customers.
Click Here – Get Free Investment Predictions
HD Fire IPO Details: Dates, Price Band and Issue Structure
| Particulars | Details |
|---|---|
| Subscription | 13 to 15 October 2026 |
| Price band | Rs 258 to Rs 271 per share; face value Rs 5 |
| Lot size | 55 shares, Rs 14,905 at the upper end of the price band |
| Issue size | Rs 712.31 crore, 2,62,84,500 shares |
| Structure | 100% offer for sale; no fresh issue and no money to the company |
| Reservation | 50% institutions, 35% retail, 15% non-institutional |
| Shareholding | Promoters 100% before the issue and 85% after it |
| Allotment and listing | Allotment 16 October; listing 21 October on BSE and NSE (tentative) |
| Lead managers | Ambit, Anand Rathi Advisors and IIFL Capital Services; registrar MUFG Intime India |
The promoters Harish Dharamshi and Kusum Dharamshi are the selling shareholders. Kusum Dharamshi sells 1.73 crore shares worth Rs 468.85 crore and Harish Dharamshi sells 89.84 lakh shares worth Rs 243.46 crore at the upper price band.
Check the Univest Screener and IPO updates
HD Fire IPO Business: Why It Is Called a Niche
| Feature | Detail |
|---|---|
| Products | Eight categories including sprinklers, alarm valves, foam equipment, nozzles and gas suppression |
| Customers | 2,066 customers in FY26 across oil and gas, refining, power, pharma, data centres and warehousing |
| Certifications | 21 UL listed and 87 FM approved products, which act as a barrier to entry |
| Exports | 34.69% of FY26 revenue, with sales in more than 90 countries |
| Order book | Rs 158.60 crore at 30 June 2026 |
| Plants | Jalgaon and Thane in Maharashtra, with a fire test lab and R&D unit |
The niche is the strength of this story, since certification and in-house design are hard to copy. It also means a small customer base by project and exposure to cyclical industries, so growth can be uneven.
HD Fire IPO Financials: Growth, Margins and Returns
| Measure (Rs crore) | FY24 | FY25 | FY26 | Q1 FY27 |
|---|---|---|---|---|
| Revenue from operations | 372.95 | 432.80 | 489.28 | About 109 |
| EBITDA | 106.63 | 138.01 | 150.46 | 29.73 |
| EBITDA margin (my calculation) | 28.6% | 31.9% | 30.75% | 27.26% |
| Profit after tax | 87.92 | 109.72 | 116.79 | 23.87 |
| Profit growth (my calculation) | Not given | 24.8% | 6.4% | Not given |
Revenue grew 13.05% in FY26 but profit grew only 6.4%, and the EBITDA margin fell from 31.9% to 30.75% and then to 27.26% in Q1 FY27. Brokerages also point to receivable days rising to 57. FY26 return on equity was 30.17% and return on capital employed 40.33%, which are high, and the company is debt-free.
Download the Univest iOS App or Univest Android App to track IPOs and your watchlist live.
Is the HD Fire IPO Price Tag Demanding? Valuation Check
| Measure | Figure | Note |
|---|---|---|
| Market capitalisation at the upper price | About Rs 4,748.73 crore | From the offer documents |
| Price to FY26 earnings | About 40.7 times | Rs 271 against EPS of Rs 6.66 |
| Price to earnings on post-issue EPS | About 49.7 times | EPS of Rs 5.45 |
| Price to book | About 12.6 times | NAV Rs 21.45 |
| Peer median P/E | 51.39 times | Five loosely comparable listed companies |
| Peer average P/E | About 63 times | Pulled up by Azad Engineering at 145.65 times |
The listed peers used are Azad Engineering (145.65 times), KSB (55.68), Ingersoll-Rand India (51.39), Elgi Equipments (44.70) and Kirloskar Pneumatic (17.18). None is a pure fire protection company, so the comparison is rough. At 40.7 times the HD Fire IPO sits about 21% below the peer median (my calculation).
Against growth, the picture is less comfortable. A P/E of 40.7 divided by FY26 profit growth of 6.4% gives a ratio of about 6.4, while using the three-year profit growth of about 15.3% a year gives about 2.7 (my calculation). So the HD Fire IPO price tag is fair only if growth returns to the higher rate.
HD Fire IPO Offer for Sale and Promoter Payouts
Because the HD Fire IPO is a 100% offer for sale, the company receives nothing and the promoters’ holding falls from 100% to 85%. Net worth fell from Rs 396.01 crore in March 2025 to Rs 375.93 crore in March 2026 although the company earned Rs 116.79 crore. That implies about Rs 137 crore left the company through dividends or other payouts (my calculation, assuming no other changes).
Brokerages have flagged these pre-issue payouts as a risk. They do not break any rule, but they show that the sellers are cashing out at a high valuation.
HD Fire IPO Anchor Investors and Brokerage Views
| Item | Detail |
|---|---|
| Anchor investors | Rs 213.11 crore from 25 funds at Rs 271, including HDFC MF, Kotak, Aditya Birla Sun Life, Mirae Asset and UTI MF |
| Brokerage views | Eight brokerages say Subscribe in one report, several for the long term; one notes listing gains may be modest |
| Another count | A second data provider counts five Subscribe and one May Apply |
Strong anchor investors and a Subscribe call from every brokerage in one report support the HD Fire IPO, but both are views and not guarantees.
Grey market premium (GMP) is an unofficial, unregulated indicator for the HD Fire IPO that is not endorsed by SEBI, NSE, or BSE. Investors looking for indicative GMP data can go through other relevant sources, though such figures should never be the sole basis for an investment decision.
Risks of the HD Fire IPO
Valuation: At about 40.7 times earnings, the HD Fire IPO leaves less room for a profit slowdown.
Margin trend: The EBITDA margin has fallen to 27.26% from 31.9% in FY25.
Concentration: The top 10 suppliers were 59.28% of expenses in Q1 FY27, with no long-term contracts.
Location and cycle: Both plants are in Maharashtra, and demand follows industrial project cycles.
No proceeds: The company gets no money from the HD Fire IPO, so the offer does not fund growth.
Data differences: P/E and revenue figures differ across sources, such as revenue from operations of Rs 489.28 crore against total income of Rs 505.12 crore.
What to Watch Next
- Subscription numbers on 13, 14 and 15 October, especially the retail and institutional parts.
- Allotment on 16 October and listing on 21 October.
- How the HD Fire IPO is received in the institutional segment.
- Q2 FY27 margin and receivable days after listing.
- Order book growth and progress at the Thane plant, due by November 2026.
Conclusion
HD Fire IPO offers a certified niche business with high returns and no debt, at about 40.7 times earnings with slowing profit growth and full promoter selling. Review the red herring prospectus and your own risk profile before applying. Consult a SEBI-registered advisor before making any decision.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
When does the HD Fire IPO open and close?
Ans. It opens on 13 October 2026 and closes on 15 October, with allotment on 16 October and listing tentatively on 21 October on BSE and NSE.
What is the HD Fire IPO price band and lot size?
Ans. The price band is Rs 258 to Rs 271 and the lot is 55 shares, so the minimum investment is Rs 14,905 at the upper price.
Is the HD Fire IPO a fresh issue?
Ans. No. It is a 100% offer for sale of Rs 712.31 crore by the promoters, so the company receives no money from the issue.
What is the HD Fire IPO valuation?
Ans. About Rs 4,748.73 crore at the upper price, or about 40.7 times FY26 profit of Rs 116.79 crore, with a peer median of 51.39 times.
What is the HD Fire IPO GMP?
Ans. Grey market premium (GMP) is an unofficial, unregulated indicator for the HD Fire IPO that is not endorsed by SEBI, NSE, or BSE. Investors looking for indicative GMP data can go through other relevant sources, though such figures should never be the sole basis for an investment decision.
How did HD Fire Protect perform in FY26?
Ans. Revenue from operations rose 13.05% to Rs 489.28 crore and profit rose 6.4% to Rs 116.79 crore, with an EBITDA margin of 30.75%.
Who are the anchor investors in the HD Fire IPO?
Ans. 25 funds put in Rs 213.11 crore at Rs 271, including HDFC MF, Kotak, Aditya Birla Sun Life, Mirae Asset and UTI MF.
Should I apply for the HD Fire IPO?
Ans. This article does not constitute investment advice. Consult a SEBI-registered financial advisor.
