CFF Fluid Control Ltd, a leading provider of advanced technology and engineering solutions for India’s defense and energy sectors, is set to launch its FPO. This FPO aims to raise capital for strategic initiatives, inviting investors to participate in the growth of a company at the forefront of the ‘Make in India’ movement.
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Crucial Shariah Status
For investors guided by Islamic financial principles, CFF Fluid Control Ltd. presents a compelling opportunity. Based on comprehensive screening, CFF Fluid Control Ltd. is unequivocally categorized as Shariah Compliant.
The company’s core business, centered around providing cutting-edge solutions for the defence and energy industries, has successfully passed the Shariah screening. Its financial ratios further reinforce its compliance:
- The impermissible income to total revenue ratio is well within acceptable Shariah limits.
- The interest-bearing debt to total assets ratio stands comfortably within Shariah criteria.
- The illiquid assets to total assets ratio also meeting Shariah guidelines.
- Furthermore, the company passes the net liquid assets versus market capitalization rule and the non-compliant investments to total assets rule.
Therefore, for Muslim investors prioritizing Shariah compliance, CFF Fluid Control Ltd. FPO is considered a permissible investment avenue.
About CFF Fluid Control Ltd.: Engineering Excellence for Critical Sectors
Established to provide advanced technology and engineering solutions, CFF Fluid Control Ltd (CFF) plays a crucial role in India’s defense industry, particularly for the Indian Navy’s submarine program. Immediately after its inception, CFF entered into a technology transfer agreement with Coyard SAS France, enabling the introduction of modern fluid control and other mechanical equipment for under-construction submarines.
Under strategic agreements with global partners and the submarine designer, CFF delivers a wide range of technological solutions, from mechanical systems to electronics, power, and communication equipment, all developed locally under the ‘Make in India’ initiative. CFF is involved in every phase of defence platform deployment, including in-house design, manufacturing, overhaul, repair, and lifecycle support. The company has been instrumental in indigenizing submarine equipment and designing systems for India’s stealthiest ships, truly championing the ‘Make In India’ movement.
What CFF Fluid Control Does:
- Design and Manufacturing: Possesses in-house design teams with expertise in stringent defense technical standards and extensive facilities for precision manufacturing of mission-critical stealth, propulsion equipment, and highly precise components. They specialize in manufacturing exotic materials like titanium, Inconel, and new-age composites.
- Testing and Qualification: Equipped with extensive facilities for pneumatic, hydraulic, electrical, and electronic system testing, duly calibrated and certified.
- Systems and Processes: Ensures consistent quality and delivery through highly trained, experienced, and certified personnel following specific documented procedures.
Industries Served:
- Defence:
- Ships and Submarines: Focuses on indigenization, manufacturing, integration, installation, commissioning, and through-life cycle support for various ships, submarines, and unmanned platforms.
- Land and Air: Provides rapid prototyping and precision fabrication for land and air platforms, from turbocharger assemblies for tanks to components for next-generation missiles.
- Manufacturing: Produces critical components, assemblies, sub-assemblies, equipment, and systems that meet stringent Defence technical standards.
- Support Services: Offers complex structural repairs, overhaul of mechanical, electrical, communication, and navigation systems, along with lifecycle support.
- Strategic Projects: Engages in rapid prototyping, concept-to-commissioning equipment, and system integration for both manned and unmanned platforms.
- Energy:
- Nuclear: Provides specialized solutions including manufacturing and installation of fuel handling transport and storage systems, and water/toxic gas monitoring systems like SWAS (Steam and Water Analyzer System) and Wet Rack Systems.
- Clean Energy: Leverages cutting-edge fuel cell technology for new and retrofit solutions to convert marine assets (cargo and passenger) to clean and renewable energy. It also offers long-term endurance for underwater unmanned platforms through fuel cell system integration.
- Manufacturing and Integration: Handles manufacturing, fabrication of components and equipment, and integration of assemblies to meet stringent Nuclear and Clean energy standards.
- Support Services: Offers installation and commissioning of on-board, mobile, and land-based clean energy applications.
- Strategic Projects: Involved in retrofitting and new builds in the clean energy propulsion arena for locomotive and marine-based assets.
CFF Fluid Control’s manufacturing facility in Khopoli covers 6,000 square meters with modern machinery. An additional facility in the pipeline at Chakan Industrial Area, Pune (1,950 sq. meters), will focus on critical and complex systems. The company also boasts a robust order book value of ₹51,396.87 lakhs as of May 31, 2025, and benefits from high entry barriers in defense manufacturing and strategic partnerships with foreign manufacturers like M/s Nereides and M/s Atlas Elektronik GmbH. It is backed by experienced promoters and managers.
CFF Fluid Control FPO: Key Details
The Further Public Offering of CFF Fluid Control Ltd. is structured as a Fixed Price FPO. The FPO will open on Wednesday, July 9, 2025, and is scheduled to close on Friday, July 11, 2025. The total issue size is 15,00,000 shares, aggregating up to ₹87.75 Crores, all as fresh capital.
- FPO Open Date: July 9, 2025 (Wednesday)
- FPO Close Date: July 11, 2025 (Friday)
- Face Value: ₹10 per share
- Issue Price: ₹585 per share
- Lot Size: 200 Shares
- Sale Type: Fresh Capital
- Total Issue Size: 15,00,000 shares (aggregating up to ₹87.75 Crores)
- Reserved for Market Maker: 78,000 shares (aggregating up to ₹4.56 Crores) – Aryaman Capital Markets Limited
- Net Offered to Public: 14,22,000 shares (aggregating up to ₹83.19 Crores)
- Issue Type: Fixed Price FPO
- Listing At: BSE SME
- Share Holding Pre Issue: 1,94,74,100 shares
- Share Holding Post Issue: 2,09,74,100 shares
- Tentative Allotment Date: Monday, July 14, 2025
- Initiation of Refunds: Tuesday, July 15, 2025
- Credit of Shares to Demat: Tuesday, July 15, 2025
- Tentative Listing Date: Wednesday, July 16, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 11, 2025
Financial Performance: A Snapshot of CFF Fluid Control Ltd.
CFF Fluid Control Limited has demonstrated robust financial growth. The company’s revenue increased by thirty-seven percent (37%) and profit after tax (PAT) rose by forty percent (40%) between the financial year ending March 31, 2024, and March 31, 2025. This consistent growth highlights efficient management and expanding market penetration.
As of March 31, 2025, the company reported total assets of ₹199.03 crores, with revenue at ₹146.10 crores. Profit After Tax stood at ₹23.85 crores, while EBITDA was ₹41.31 crores. Net Worth increased to ₹147.84 crores, and Reserves and Surplus reached ₹128.37 crores. Total Borrowing as of the same date was ₹21.11 crores. For comparison, on March 31, 2024, assets were ₹161.16 crores, revenue was ₹106.98 crores, PAT was ₹17.09 crores, EBITDA was ₹30.85 crores, Net Worth was ₹125.94 crores, Reserves and Surplus were ₹106.46 crores, and Total Borrowing was ₹23.48 crores. Looking back to March 31, 2023, assets were ₹88.68 crores, revenue was ₹71.10 crores, PAT was ₹10.14 crores, EBITDA was ₹18.83 crores, Net Worth was ₹24.99 crores, Reserves and Surplus were ₹10.72 crores, and Total Borrowing was ₹45.90 crores.
Key Performance Indicator (KPI): CFF Fluid Control Ltd.
Key Performance Indicators offer insights into CFF Fluid Control Ltd.’s efficiency and valuation, based on its latest financial data.
The Return on Equity (ROE) is 17.42 percent. The Return on Capital Employed (ROCE) is 21.84 percent. The Return on Net Worth (RoNW) is 16.13 percent. The Profit After Tax (PAT) Margin is 16.39 percent, and the EBITDA Margin is 28.38 percent.
Objects of the Issue: Purpose of the FPO Funds
CFF Fluid Control FPO proposes to utilise the Net Proceeds from the issue towards the following objectives:
- ₹72.60 crores for funding working capital requirements.
- ₹8.34 crores for general corporate purposes.
This indicates a clear focus on strengthening the company’s operational liquidity and supporting its overall strategic growth initiatives.
Conclusion and Investor Outlook
CFF Fluid Control Ltd. stands as a strategically important company within India’s defence and energy sectors, characterized by robust growth, technological innovation, and critical contributions to the ‘Make in India’ initiative. Its Shariah-compliant status makes it a particularly attractive option for Muslim investors seeking ethically sound investment opportunities. For all investors, a thorough review of the Red Herring Prospectus (RHP) is always recommended to understand the company’s detailed business model, risk factors, and future strategies. An informed investment decision is best made after comprehensive research aligned with individual investment goals and risk tolerance.
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