Fire protection equipment manufacturer HD Fire Protect Ltd on Monday raised ₹213.11 crore from anchor investors ahead of its initial public offering (IPO), which will open for public subscription on Tuesday, October 13. According to a circular uploaded to the stock exchanges, the company allotted 78.64 lakh equity shares to 25 funds at ₹271 apiece, the upper end of the IPO's price band.
The anchor investor round attracted participation from Bajaj Life Insurance, Axis Max Life Insurance, Allianz Global Investors Fund and several domestic mutual funds, including Kotak Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Mirae Asset Mutual Fund, Bandhan Mutual Fund and UTI Mutual Fund.
Mutual funds receive nearly 72% of anchor allocation Domestic mutual funds accounted for a significant share of the anchor book, receiving 56.52 lakh shares, or 71.88% of the total allocation. The shares were allotted through 17 mutual fund schemes, highlighting the participation of domestic institutional investors ahead of the public offering.
Anchor investors are institutional investors allotted shares before an IPO opens for subscription by other investor categories. Their participation can provide an indication of institutional interest in a public issue, although it does not guarantee listing gains or future stock performance.
IPO opens on October 13, closes on October 15 The ₹712-crore IPO will open for subscription on October 13 and close on October 15. The company has fixed the price band at ₹258-271 per share. The public issue comprises an offer for sale (OFS) of 2.63 crore equity shares by promoters Harish Narshi Dharamshi and Kusum Harish Dharamshi.
Since the issue consists entirely of an OFS, HD Fire Protect will not receive any proceeds from the IPO. The money raised through the sale of shares will go to the selling shareholders, after applicable expenses and taxes. At the upper end of the price band, the company is valued at approximately ₹4,750 crore.
The company's shares are expected to list on the BSE and the National Stock Exchange (NSE) on October 21. Company serves industrial and infrastructure sectors Mumbai-based HD Fire Protect designs and manufactures fire protection equipment and systems, including water-, foam- and gas-based fire suppression solutions.
The company operates two manufacturing facilities in Maharashtra and caters to a range of industries, including oil and gas, refining, petrochemicals, power, pharmaceuticals, aerospace, data centres and warehousing. Its products have been deployed in several prominent infrastructure and industrial projects in India.
These include the country's new Parliament building, the refinery complex in Jamnagar and installations at the space launch facility in Sriharikota. With its presence across industrial and infrastructure segments, the company operates in a market where fire safety requirements are critical to protecting facilities, equipment and personnel.
Investors will be able to subscribe to the IPO between October 13 and October 15, with the final listing scheduled for October 21, subject to the proposed timetable.