Maharashtra-based hydraulic fittings manufacturer Hy-Tech Engineers has initiated its IPO process by filing its DRHP with SEBI. The issue will include the issuance of fresh shares worth Rs 70 crore, and promoters will sell 1.19 crore shares through an offer for sale. The funds raised from the IPO will be utilized by the company for the expansion of its three units, procurement of new machinery, and repayment of debt. The company reported a profit of Rs 19.6 crore in FY25.
IPO News: Hy-Tech Engineers, a Maharashtra-based company manufacturing hydraulic fittings, is soon coming out with an IPO. The company has filed its Red Herring Draft Prospectus (DRHP) with SEBI. This issue will include fresh shares worth Rs 70 crore and 1.19 crore shares from promoters via an offer for sale. The funds raised from the IPO will be used for the expansion of three units, purchasing new machinery, repaying Rs 18 crore of debt, and for general corporate purposes. In FY25, the company's revenue stood at Rs 161.4 crore, and its profit was Rs 19.6 crore.
Expansion and Debt Repayment through IPO
Hy-Tech Engineers has stated that the funds generated from the IPO will primarily be used for the expansion of its three units. The company will acquire new equipment and machinery to enhance production capacity. Additionally, Rs 18 crore will be utilized by the company to repay its existing debt. The remaining funds will be used for general business requirements and operations.
According to the company, as of the end of July 2025, it had a total fund-based debt of Rs 34 crore and non-fund-based debt of Rs 8.2 crore. This plan for investment and debt repayment represents a significant step towards strengthening the company's financial structure.
Company's Business and Clientele
Hy-Tech Engineers supplies hydraulic fittings and related products to various industries, including companies in the construction, automotive, and agricultural sectors. The company's key competitors include players like Aeroflex Industries, Dynamatic Technologies, and Yuken India.
The company has asserted that its products are of high quality and that it ensures timely delivery, which has helped it establish a b presence in the industry. The funds raised through the IPO will further enhance its production and distribution capabilities.
Company's Financial Performance
In FY25, Hy-Tech Engineers reported a profit of Rs 19.6 crore. This is a 69.2 percent increase from the previous year's profit of Rs 11.6 crore. During the same period, the company's revenue grew by 17.2 percent to Rs 161.4 crore. This financial performance has boosted investor confidence.
The company has appointed Newberry Capitals as the Book Running Lead Manager, which will help in the smooth execution of the IPO process.
Investment in New Units and Machinery
Hy-Tech Engineers' IPO is considered crucial for the company's expansion plans and financial strengthening. The new investment will enable the company to increase production capacity, establish new units, and invest in machinery. Furthermore, the sale of shares by promoters in the offer for sale will provide an opportunity for both existing and new public investors.
The objective of the funds raised through the IPO is not limited to business expansion; the company is also taking steps to strengthen its financial position by reducing its debt. This will also ensure the company's long-term stability.
