New Delhi-based Hi-Tech FlowSolutions Limited files DHRP for IPO

 

New Delhi-based Hi-Tech Flow Solutions Limited has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

 

The IPO, with a face value of Rs 2, is a fresh issue up to Rs 300 crore and an offer-for-sale by promoters – Ajay Kumar Bansal and Vipul Bansal.  Ajay Kumar Bansal is offering shares up to Rs 75 crore and Vipul Bansal up to Rs 25 crore. 

 

Investor - The Wealth Company Alternates Trust – India Inflection Opportunity Fund is offering up to 20,268,225 shares.

 

The company, in consultation with the book-running lead managers, may consider a pre-IPO Placement for up to Rs 60 crore. The pre-IPO placement if completed, the fresh issue size will be reduced.

 

The proceeds from its fresh issue worth Rs 125.9 crore will be utilised for funding the proposed expansion by setting up API-grade HSAW pipe manufacturing unit along with a 3LPE coating unit within their existing Nagpur facility, Rs 90 crore in repayment or pre-payment, in part or full of certain borrowings availed by the company from banks, and general corporate purposes.

 

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.

 

Incorporated in 1993, the company provides flow solution products having varied applications by manufacturing and supplying Helical Submerged Arc Welded (HSAW) pipes across 17 states and 2 union territories in India, through its manufacturing facilities at Sanand, Gujarat and Nagpur.

 

It operates on a business-to-business model and primarily caters to private engineering, procurement and construction contractors, engaged in the execution of large-scale pipeline and infrastructure projects. As per the CareEdge Report, its HSAW pipes serve a diverse range of applications, with a primary focus on large-diameter water-transmission pipelines used in bulk water-supply systems, irrigation networks, inter-basin river-link pipelines, municipal water distribution networks, dam-based irrigation systems, transport-linked utility corridors and sewerage and urban-infrastructure projects.

 

The company is also expanding its product portfolio to cater to the growing demand for HSAW pipes in the oil and gas sector. As per the CareEdge Report, HSAW pipes are also supplied for use in various other applications including airport, flyovers, power projects utilities such as HVAC utility networks, where long-distance, high-capacity handling and corrosion-resistant pipeline solutions are required.

 

Further, the CareEdge Report highlights the rapid expansion of data centre infrastructure, particularly hyperscale and artificial intelligence (AI) data centres. The development of such facilities requires supporting water supply and utility infrastructure, which may create additional demand opportunities for HSAW Pipes used in these applications.

 

As on the date of Draft Red Herring Prospectus,  the company has a total installed capacity of 160,000 metric tonnes per annum (MTPA), of which 40,000 MTPA is at Sanand Facility and 120,000 MTPA is at its Nagpur Facility. During the last three Fiscals, the company supplied 154,000 MT of HSAW pipes on aggregate basis.

 

Over the past seven years, the company has expanded its annual installed capacity and operational scale to meet the growing demand for its products and to strengthen its presence. The company is currently undertaking an expansion at its Nagpur facility from its internal accruals, which is expected to be completed by June 2027. This expansion will add 30,000 MTPA to its annual installed capacity, for production of HSAW pipes bringing its total annual installed capacity to 190,000 MTPA.

 

The company is also a registered vendor with multiple infrastructure authorities engaged in water supply, sewerage and urban development projects, including state level Public Health Engineering Department, Jal Nigams and state water supply and Sewerage Boards, though its sales are primarily made to EPC contractors, who procure and utilise its products for execution of projects awarded by such government and quasi-government authorities.

 

As per the CareEdge Report, finished steel consumption in India grew at a compounded annual growth rate of 8.7% from Fiscal 2020 to Fiscal 2026, increasing from 100 million tonnes to 164 million tonnes. The Indian market for HSAW pipes has demonstrated significant historical growth, expanding from $ 953 million in calendar year 2019 to USD 2,097 million in calendar year 2025. This trajectory is projected to continue, with the market forecast to reach USD 3,039 million by calendar year 2030.

 

Looking ahead, HSAW pipes are expected to continue growing due to ongoing investments in energy and water infrastructure, especially in regions focusing on pipeline networks to enhance energy security and improve urban water supply. Growth in the HSAW pipes segment is expected to be further enhanced by continued investments in water and irrigation infrastructure, including government initiatives such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and AMRUT 2.0, the Inter-Linking of Rivers (ILR) programme, including Cross River Linkage projects and the Jal Jeevan Mission (JJM).

 

 In addition, demand from the oil & gas sector is expected to remain a key growth driver for API-grade HSAW pipes, which are used extensively in oil and gas transmission pipelines, cross-country hydrocarbon transportation networks, refinery connectivity projects, city gas distribution infrastructure and other critical energy applications

 

Additionally, the rapid expansion of data centre infrastructure, particularly hyperscale and artificial intelligence ("AI") data centres are emerging as an indirect demand driver for water and utility infrastructure, thereby creating potential opportunities for manufacturers of HSAW pipes.

 

The company has an established customer base comprising primarily EPC contractors undertaking large-scale water supply, pipeline and related infrastructure projects for government utilities, water supply departments and project authorities. Its products are also supplied through dealers and distributors, enabling it to cater to smaller project requirements, regional demand and customers requiring shorter delivery timelines and credit support.

 

To further strengthen its product portfolio and cater to the growing demand in the oil and gas sector, the company propose to establish an API-grade HSAW pipe manufacturing unit with a capacity of 120,000 MTPA along with a three-Layer Polyethylene (3LPE) coating unit having an installed capacity of 1,000,000 sq. m. per annum, within the existing Nagpur Facility (Proposed Expansion). API-grade HSAW pipes are spiral, large-diameter helical submerged arc welded steel pipes manufactured in conformity with the technical standards prescribed by the American Petroleum Institute, used primarily for the transportation of oil, natural gas and other hydrocarbons across long-distance, high-pressure pipeline networks.

 

This proposed expansion represents a strategic diversification into high-value segment of the steel pipe industry, aimed at broadening our product mix and value addition.

 

Over the years, the company has built a diversified and low-concentration customer base with its top 5 customers accounting for 39.47% and its top 10 customers accounting for 56.58% of its revenue from operations in Fiscal 2026. The company has also built a growing and capital light distribution network through its dealers and distributors.

 

Its revenue from operations was Rs 417 crore during FY26 as compared to Rs 229 crore during FY24.

Its net profit was Rs 36.4 crore during FY26 as compared to Rs 18.3 crore during FY24.

 

InCred Capital Financial Services Limited and Pantomath Capital Advisors Private Limited are the book-running lead managers, and MUFG Intime India Private Limited is the registrar of the issue.

 

The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.