HD Fire Protect Raises Rs 213 Crore From Anchor Investors; Mutual Funds Take 72% of the Book

HD Fire Protect has locked in Rs 213.11 crore from anchor investors on the eve of its initial public offering, allotting 78.64 lakh equity shares at Rs 271 apiece, the upper end of its price band. The anchor round covers roughly 30% of the Rs 712 crore issue, which opens for public bidding on Tuesday, October 13.

Domestic funds dominate the anchor book

The standout detail in the allotment is how heavily Indian mutual funds leaned in. Nine fund houses, bidding through 17 schemes, received 56.52 lakh shares, or 71.88% of everything set aside for anchors. Kotak Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Mirae Asset, Bandhan and UTI were among the participants named in the exchange circular.

Insurers Bajaj Life Insurance and Axis Max Life Insurance also took part, as did Allianz Global Investors Fund. Reports differ on the exact number of anchor accounts, but the mix is clearly tilted toward long-only domestic money rather than short-term foreign funds.

Anchor shares come with a lock-in, so a strong domestic anchor book is often read as an early signal of institutional comfort with the pricing. It does not, however, guarantee demand from retail or high-net-worth investors once the issue opens.

Promoters sell, company gets nothing

Investors should be clear on one structural point: the entire issue is an offer for sale. Promoters Harish Narshi Dharamshi and Kusum Harish Dharamshi are selling 2.63 crore shares between them, and none of the money raised will reach the company's balance sheet. There is no fresh capital for expansion, debt reduction or new plants.

At the top of the band, HD Fire Protect is valued at around Rs 4,750 crore. Against a FY26 net profit of Rs 116.79 crore on revenue of Rs 489.28 crore, that works out to roughly 41 times trailing earnings.

Key dates and bidding details

• Price band: Rs 258 to Rs 271 per share
• Lot size: 55 shares, so a single retail lot costs about Rs 14,905 at the upper end
• Subscription window: October 13 to October 15
• Tentative listing: October 21 on BSE and NSE

What the company does

Mumbai-based HD Fire Protect designs and manufactures fire-suppression equipment that uses water, foam or gas. It runs two manufacturing plants in Maharashtra and sells to oil and gas producers, refiners, petrochemical units, power plants and pharmaceutical makers, along with a growing base in aerospace, data centres and warehousing.

The company has supplied equipment for India's new Parliament building, the Jamnagar refinery complex and installations at the Sriharikota space launch centre, references that give it visibility in large, safety-critical projects.

Risks worth weighing

Both manufacturing sites sit in a single state, so any regional disruption could affect deliveries. The business also depends on keeping international product certifications such as UL and FM current; a lapse could restrict access to export and high-specification domestic orders. Many customer relationships are not backed by long-term contracts, which can make revenue lumpy, and the company is exposed to swings in raw-material prices without fixed supply agreements.

The next three days of subscription data, particularly from the retail and non-institutional categories, will show whether the broader market shares the anchors' enthusiasm.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.