HD Fire makes strong debut

HD Fire Protect made a strong debut on the stock exchanges today, October 21, listing at Rs. 335 on the NSE and Rs. 334.40 on the BSE, against its IPO price of Rs. 271. This translates into listing gains of 23.62% and 23.39%, respectively. The healthy premium follows strong institutional and HNI demand during the IPO and is broadly in line with grey-market expectations.

Trigger

• IPO price: Rs. 271 per share.
• NSE listing: Rs. 335, a gain of 23.62%.
• BSE listing: Rs. 334.40, a gain of 23.39%.
• Issue size: approximately Rs. 712 crore, entirely an offer for sale.
• Overall subscription: 131.7 times.
• QIB subscription: 256.65 times.
• HNI subscription: 203.21 times.
• Retail subscription: 30.49 times.
• Employee portion: 23.61 times.

The company is a 36-year-old Mumbai-based manufacturer of fire protection equipment such as sprinkler, alarm valves, deluge valves, deluge skids, pre-action systems, foam equipment, suppression systems, water spray nozzles and monitors used in both residential and commercial sectors.

In our IPO Analysis, we had concluded - HD Fire Protect has strong fundamentals of high margin business with healthy cash generation and return ratio. Coupled with decent pricing, we recommend the IPO of HD Fire Protect for subscription.