Hi-Tech Flow Solutions Files DRHP For IPO With ₹300 Crore Fresh Issue, Promoters To Offload Shares
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Hi-Tech Flow Solutions has filed DRHP with Sebi for an IPO featuring a ₹300 crore fresh issue. Promoters hold 85.33% of Hi-Tech Flow Solutions, while The Wealth Company is its only public shareholder.
Hi-Tech Flow Solutions has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), setting the stage for an initial public offering comprising a fresh issue of shares worth up to ₹300 crore and an offer for sale by promoters and an existing investor.
The proposed fresh issue will provide capital for expansion at the company's Nagpur manufacturing facility and repayment or prepayment of borrowings. About ₹125.9 crore has been earmarked for an API-grade helical submerged arc welded (HSAW) pipe manufacturing unit and a 3LPE coating facility, while another ₹90 crore is proposed to be used towards outstanding bank borrowings. The remaining proceeds will be available for general corporate purposes.
The offer-for-sale component will see promoter Ajay Kumar Bansal sell shares worth up to ₹75 crore and promoter Vipul Bansal offload shares worth up to ₹25 crore. The Wealth Company Alternates Trust – India Inflection Opportunity Fund, which holds 14.67% of the company's pre-offer paid-up equity, will also sell up to 2.03 crore shares.
A pre-IPO placement of up to ₹60 crore could also take place before the public issue. Any amount raised through such a placement would be adjusted against the fresh issue size.
The proposed expansion comes as the company works to increase capacity at its Nagpur plant, which currently accounts for 1.2 lakh tonnes of its combined installed capacity of 1.6 lakh tonnes per annum. A separate expansion is already under way at the facility, with another 30,000 tonnes of capacity expected to be added by June 2027. The IPO-funded project would add further HSAW pipe manufacturing capacity along with a 3LPE coating facility.
Based in New Delhi, Hi-Tech Flow manufactures HSAW pipes and other flow-solution products used in infrastructure and industrial applications. Its manufacturing footprint spans Nagpur in Maharashtra and Sanand in Gujarat, while its business-to-business customer base includes engineering, procurement and construction contractors involved in large pipeline and infrastructure projects. The company sells across 17 states and two Union territories.
Revenue from operations rose to ₹417.2 crore in FY26 from ₹298.3 crore a year earlier, while net profit increased to ₹36.4 crore from ₹24.3 crore. The company's peer set includes listed pipe manufacturers such as Ratnamani Metals & Tubes, Man Industries, Welspun Corp and Jindal Saw.
The proposed IPO comes with the company yet to disclose a price band or subscription dates. InCred Capital Financial Services and Pantomath Capital Advisors have been appointed as the book-running lead managers, while MUFG Intime India will act as registrar to the issue.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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