Hi-Tech Flow Solutions Files DRHP with SEBI for Rs 300 Crore IPO

New Delhi-headquartered pipe manufacturer Hi-Tech Flow Solutions Ltd has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise capital through an Initial Public Offering (IPO).

The proposed public issue features a fresh issue of equity shares with a face value of Rs 2 each, aggregating up to Rs 300 crore, along with an Offer for Sale (OFS) component by promoters and an existing institutional backer.

Issue Structure and Key Participants

The Offer for Sale will see promoter Ajay Kumar Bansal offload shares worth up to Rs 75 crore, while promoter Vipul Bansal will dilute equity worth up to Rs 25 crore. In addition, early investor The Wealth Company Alternates Trust – India Inflection Opportunity Fund is offering up to 2,02,68,225 equity shares through the OFS.

Hi-Tech Flow Solutions may also evaluate a pre-IPO placement for an amount aggregating up to Rs 60 crore in consultation with its merchant bankers. If successfully concluded, the fresh issue component will be scaled down accordingly.

The book-building process is structured under standard regulatory allocations:

• Not more than 50% of the net issue reserved for Qualified Institutional Buyers (QIBs).
• Not less than 15% allocated to Non-Institutional Bidders (NIIs).
• Not less than 35% earmarked for Retail Individual Bidders (RIBs).

InCred Capital Financial Services and Pantomath Capital Advisors have been appointed as the book-running lead managers to manage the issue, while MUFG Intime India is acting as the registrar.

Utilization of Fresh Proceeds

Of the fresh capital raised, the company plans to deploy the net proceeds across infrastructure expansion and balance sheet deleveraging:

• Capacity Expansion: Rs 125.9 crore will be directed toward setting up an API-grade Helical Submerged Arc Welded (HSAW) pipe manufacturing unit along with a 3LPE (three-layer polyethylene) coating unit at its existing manufacturing facility in Nagpur, Maharashtra.
• Debt Repayment: Rs 90 crore is allocated toward full or partial repayment or pre-payment of certain bank borrowings.
• Corporate Outlays: The remaining funds will be utilized for general corporate purposes.

The company is also executing an ongoing capacity expansion at its Nagpur site using internal accruals, scheduled for completion by June 2027. That phase will add 30,000 metric tonnes per annum (MTPA) to its annual installed capacity, taking its overall HSAW pipe capacity to 1,90,000 MTPA.

Business Operations and Financial Profile

Incorporated in 1993, Hi-Tech Flow Solutions manufactures and supplies specialized HSAW pipes serving critical flow solutions across 17 states and 2 union territories. It operates two primary manufacturing plants located at Sanand in Gujarat and Nagpur in Maharashtra.

The company supplies to private engineering, procurement, and construction (EPC) contractors engaged in large-scale domestic pipeline and utility infrastructure projects across water management, energy, and industrial supply sectors.

On the financial front, Hi-Tech Flow Solutions reported revenue from operations of Rs 417 crore and a net profit after tax of Rs 36.4 crore for the financial year ended March 31, 2026 (FY26). The debt reduction initiative via IPO proceeds is intended to strengthen operating margins and enhance return ratios as public infrastructure programs sustain order intake.

Tags: Hi-Tech Flow Solutions SEBI IPO Infrastructure Capital Markets