HGS (India) Limited is a Haryana-based precision manufacturer in the seismic and geophysical equipment sector. It makes geophones, geophone strings, seismic cables and connectors under the “HG” brand. These are used in oil & gas exploration, mining, defence research and earthquake monitoring, and most of its output is exported.
The company is now bringing a book-built SME IPO of about ₹34.56 crore on NSE SME (Emerge) at a price band of ₹114–₹120 per share. The issue combines a fresh issue of 23.26 lakh shares (₹27.91 crore) with an offer for sale of 5.54 lakh shares (₹6.65 crore). It opens on 30 October 2026, closes on 3 November 2026 and is tentatively set to list on 6 November 2026. The fresh money will mainly fund machinery replacement, an in-house gold-plating facility and building infrastructure at its Manesar plant. The rest is earmarked for unidentified acquisitions and general corporate purposes.
IPO Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME (Emerge) |
| Anchor Bidding Date | 29 October 2026 |
| IPO Open Date | 30 October 2026 |
| IPO Close Date | 3 November 2026 |
| Allotment Date | 4 November 2026 (Expected) |
| Refund Initiation | 5 November 2026 |
| Credit to Demat | 5 November 2026 |
| Listing Date | 6 November 2026 (Tentative) |
| Price Band | ₹114 – ₹120 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,200 shares |
| Minimum Investment (Retail) | ₹2,88,000 (2 lots = 2,400 shares) |
| Minimum Investment (HNI) | ₹4,32,000 (3 lots = 3,600 shares) |
| Total Issue Size | 28,80,000 shares (₹34.56 crore) |
| Fresh Issue | 23,26,000 shares (₹27.91 crore) |
| Offer For Sale (OFS) | 5,54,000 shares (₹6.65 crore) |
| Pre-Issue Shares | 85,32,713 |
| Post-Issue Shares | 1,08,58,713 |
| Market Cap at ₹120 | ₹102.39 crore (pre-IPO) / ₹130.30 crore (post-IPO) |
Issue Break-up
| Category | Allocation (% of Net Offer) | Indicative Shares* |
| Market Maker (Hem Finlease Pvt. Ltd.) | Reserved portion | 1,45,200 |
| QIB (incl. Anchor) | Not more than 50% | ~13,67,400 |
| Retail (RII) | Not less than 35% | ~9,57,180 |
| NII / HNI | Not less than 15% | ~4,10,220 |
*Calculated from the net offer to the public of 27,34,800 shares (issue excluding market maker portion). Final numbers are in the RHP. Up to 60% of the QIB portion can go to anchor investors, with one-third of the anchor portion reserved for domestic mutual funds.
OFS / Selling Shareholders
| Selling Shareholder | Category | Shares Offered | Amount (₹ Cr) |
| Pawan Singh | Promoter | 2,85,120 | 3.42 |
| Anjali Singh | Promoter | 1,20,960 | 1.45 |
| Trishna Singh | Promoter | 27,213 | 0.33 |
| Beena Dosija | Other | 24,900 | 0.30 |
| Karan Singh | Promoter | 21,434 | 0.26 |
| Preneet Kaur | Other | 19,166 | 0.23 |
| Anil Seth | Other | 14,197 | 0.17 |
| Archna Dosija | Other | 12,600 | 0.15 |
| Girrendra Kaur | Other | 10,000 | 0.12 |
| Veena Uttamsingh | Other | 9,892 | 0.12 |
| Anil Henrik Ramel Singh | Promoter | 4,259 | 0.05 |
| Chaya Cecilia Ramel Homann | Promoter | 4,259 | 0.05 |
| Total | 5,54,000 | 6.65 |
The OFS proceeds go to the selling shareholders, not to the company. Promoters and promoter-group members account for about ₹5.56 crore of the OFS and other shareholders for about ₹1.09 crore.
Objects of the Issue
| # | Object | Amount (₹ Cr) |
| 1 | Capex: replacement of plant & machinery at the Manesar facility | 18.50 |
| 2 | Capex: backward integration, in-house gold-plating facility | 1.05 |
| 3 | Capex: infrastructure development of the 3rd floor of the Manesar building | 4.73 |
| 4 | Unidentified acquisitions and general corporate purposes | Balance (amount not specified) |
| Total identified capex | 24.28 |
Machinery replacement mainly supports competitiveness, and it does not by itself prove higher sales capacity. No amount is fixed for the acquisitions and general corporate purposes object.
Lead Managers & Registrar
- Book Running Lead Manager: Hem Securities Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
- Market Maker: Hem Finlease Pvt. Ltd.
Promoters & Management
The promoters are Anil Dass, Shashi Singh, Cecilia Margareta Singh Ramel and Sowar Private Limited.
| Particular | Pre-IPO | Post-IPO |
| Promoter & Promoter Group | 87.30% | 64.33% |
| Public | 12.70% | 35.67% |
Detailed key managerial profiles are available in the RHP.
Company Details
Background: HGS (India) was incorporated in 1986 as Geosource India Limited through a technical and financial collaboration with Geosource Inc., USA. Factory operations began at Udyog Vihar, Gurgaon, in 1989, and the name changed to HGS (India) Limited. The registered office is in Defence Colony, New Delhi.
Business: The company makes geophones, geophone strings, seismic cables, connectors and accessories used to collect seismic data. Its products serve oil and gas exploration, mineral exploration, defence research, earthquake monitoring and vibration analysis. It also makes cables and connectors for resistivity meters and radar equipment. Geophone strings and seismic cables make up much of its revenue.
Manufacturing: The Manesar, Haryana plant has cable extrusion lines, injection moulding machines, coil winding, magnetising, precision assembly and testing facilities.
Certifications & Status:
- ISO 9001:2015 certified
- ZED Gold certified
- 100% Export Oriented Unit recognised by NSEZ
Exports & Global Presence:
- Exports made up about 84% of FY26 revenue, per the DRHP-stage report.
- A wholly owned Netherlands subsidiary, HGS Products B.V., was set up in 2015 to support international sales and customer service.
- As of 30 September 2025 the company served 146 clients and had 161 permanent employees. Sources differ on country reach (21 countries as of September 2025 versus 47 countries in the DRHP-stage report).
Financial Snapshot
Restated consolidated figures, ₹ crore (includes the Netherlands subsidiary). Latest period: April 2026 (one month).
| Period | Total Income | EBITDA | PAT |
| FY24 (Mar-24) | 37.93 | 6.16 | 4.00 |
| FY25 (Mar-25) | 53.45 | 15.31 | 10.51 |
| FY26 (Mar-26) | 48.91 | 16.89 | 11.64 |
| Apr-26 (1 month) | 3.79 | 1.58 | 1.11 |
Analysis
- FY26 total income fell about 8.5% (₹53.45 crore to ₹48.91 crore), yet EBITDA rose about 10% and PAT about 11%, so profitability improved on lower income.
- Over two years, income grew about 29% while PAT grew nearly 3x (₹4.00 crore to ₹11.64 crore), showing a big margin jump after FY24.
- Revenue from operations (about ₹45.16 crore) is roughly ₹3.75 crore below total income, so other income contributes to reported profit.
- Net worth fell about ₹9.9 crore in FY25 despite ₹10.51 crore of profit. The sources reviewed do not explain this, so check the RHP.
- April 2026 (₹3.79 crore income, ₹1.11 crore PAT) is one month only and should not be read as an annual trend. Debt-to-equity is reported at zero.
Company Strengths
- Long operating history: about four decades in a niche seismic equipment segment.
- Wide use cases: products serve oil & gas, mining, defence, earthquake monitoring and vibration analysis.
- In-house manufacturing: extrusion, moulding, assembly and testing under one roof helps with customisation and quality control.
- Export-led business: about 84% of FY26 revenue came from exports, backed by a Netherlands subsidiary and 100% EOU status.
- Quality credentials: ISO 9001:2015 and ZED Gold certifications.
- Debt-free balance sheet with high operating margins (FY26 EBITDA margin about 37% on operating revenue).
- Backward integration plan: the in-house gold-plating facility can reduce dependence on outside processing.
- Modest valuation: P/E of about 8.8x–11.2x on reported earnings.
Key Risks & Challenges
- Customer concentration. A small group of customers accounts for most sales, and there are no long-term customer contracts.
- Export and currency risk. About 84% of revenue comes from exports, so trade barriers, foreign regulations and exchange rates matter. The company also depends heavily on imported raw materials.
- Uneven demand. FY26 total income fell about 8.5%, and equipment orders follow project schedules.
- Capex execution. Equipment replacement needs timely installation and stabilisation, and unidentified acquisitions add capital-allocation uncertainty.
- Earnings quality. Other income adds to profit, and net worth fell in FY25 for reasons not clear from the sources.
- Valuation basis. The 9.76x post-IPO P/E rests on a single month of earnings.
- Competition and technology change from Indian and multinational seismic-equipment suppliers.
- SME liquidity risk. Minimum application is ₹2.88 lakh and trading volumes on NSE SME may be thin.
- Partial shareholder exit. ₹6.65 crore of the issue is OFS, and promoters sell about ₹5.56 crore worth of shares.
Disclaimer
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
