HD Fire Protect shares list at 23% premium; expert highlights key factors to watch

ETMarkets.com

While the stock pared some of the listing gains, it was still seen trading 13.21% higher at Rs 306.8 apiece on the BSE at around 1:44 PM.

Commenting on the listing, Dr Ravi Singh, Chief Research Officer at Master Capital Services Ltd., said the company's performance going forward will depend on its ability to expand its customer base, maintain healthy margins and strengthen operating cash flows.

The Rs 712-crore IPO was priced at Rs 271 per share and comprised entirely an offer for sale (OFS) of 2.63 crore equity shares. As the issue was fully an OFS, HD Fire Protect will not receive any proceeds from the IPO, with the entire amount going to the selling shareholders.

The OFS comprised shares sold by two promoter shareholders. Harish Narshi Dharamshi offloaded 89,83,700 shares worth Rs 243.46 crore, while Kusum Harish Dharamshi sold 1,73,00,800 shares valued at Rs 468.85 crore.

Incorporated in April 1997, HD Fire Protect manufactures and supplies fire protection equipment and systems, offering water-, foam- and gas-based fire suppression solutions. Its product portfolio spans eight categories, including sprinklers, alarm valves and accessories, deluge valves and systems, foam equipment and suppression systems, monitors and nozzles, water spray nozzles, custom-engineered systems and gas suppression systems.

The company operates two manufacturing facilities in Jalgaon and Thane, Maharashtra, spread across approximately 8.50 acres, and is supported by a fire test laboratory and research and development capabilities. Since its inception, it has exported products to more than 90 countries and supplied equipment for projects such as the Samruddhi Mahamarg, the Jamnagar refinery, the new Indian Parliament building, Saudi Aramco's Ras Tanura Sea Island site and Oman's Integrated Power & Water Plant Project.

HD Fire Protect's order book stood at Rs 1,586.01 million as of June 30, 2026.

HD Fire Protect: Industry outlook and key factors to watch

According to the industry estimates cited in the IPO-related information, the global fire protection equipment market is expected to reach $85-90 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.5-7.5%.

In India, the fire protection equipment market grew at a CAGR of 12% between FY20 and FY26 to Rs 10,900 crore. It is projected to reach Rs 17,500-19,500 crore by FY31, expanding at a CAGR of 10-12%. Meanwhile, the domestic fire suppression market is expected to grow from Rs 6,400 crore in FY26 to Rs 10,500-12,000 crore by FY31, representing a CAGR of 11-13%.

Looking ahead, investors will likely track the company's ability to sustain revenue growth, improve profitability and capitalise on rising demand for fire protection equipment across industrial and infrastructure sectors. Its ability to expand its customer base, maintain healthy margins and generate stronger operating cash flows will also be important in assessing its post-listing performance.