Hi-Tech Flow Solutions files DRHP with SEBI to raise funds via IPO

Hi-Tech Flow Solutions has filed preliminary papers with the market regulator, the Securities and Exchange Board of India, to raise funds via initial public offering.

The proposed initial share sale is a combination of a fresh issuance of shares worth ₹300 crore and an offer for sale (OFS) component, according to the draft red herring prospectus (DRHP).

Under the OFS, promoters Ajay Kumar Bansal and Vipul Bansal, and investor The Wealth Company Alternates Trust – India Inflection Opportunity Fund, will sell their stake.

The fresh issue proceeds will be used for proposed expansion by establishing API-grade HSAW pipe manufacturing unit along with a

3LPE coating unit within its existing Nagpur facility, debt clearance and general corporate purposes.

"We expect to achieve the benefit of listing of the equity shares on the stock exchanges, enhancement of our company's visibility and brand name amongst our existing and potential customers and creation of a public market for the equity shares in India," the company said in its draft papers.

Hi-Tech Flow Solutions offers flow solution products having varied applications by manufacturing and supplying helical submerged arc welded, or HSAW, pipes across 17 states and two union territories. It operates on a business-to-business (B2B) model and serves private engineering, procurement and construction contractors involved in the execution of large-scale pipeline and infrastructure projects.

According to the CareEdge Report, the HSAW pipes serve various applications, with a key focus on large-diameter water-transmission pipelines utilised in bulk water supply systems, inter-basin river-link pipelines, irrigation networks, municipal water distribution networks, transport-linked utility corridors, dam-based irrigation systems and sewerage and urban-infrastructure projects.

Pantomath Capital Advisors and InCred Capital Financial Services Ltd are the issue's book-running lead managers, while MUFG Intime India is the registrar.

Shares of the company will be listed on the National Stock Exchange (NSE) and the BSE.