HGS (India) IPO

HGS (India) Limited, incorporated in February 1986, manufactures geophones, geophone strings, seismic cables, connectors and accessories used in seismic data collection and geophysical applications. Operating under the HG brand, the company serves industries including oil and gas exploration, mineral exploration, defence research, earthquake monitoring and vibration analysis. It has in-house manufacturing capabilities, including cable extrusion and injection moulding, supported by precision assembly, testing and specialised engineering facilities at Manesar, Haryana. The company holds ISO 9001:2015 and ZED Gold certifications and is recognised as a 100% Export Oriented Unit. It exports products internationally and established its wholly owned Netherlands subsidiary, HGS Products B.V., in 2015 to strengthen overseas sales and customer support.

HGS (India) Limited IPO Overview

HGS (India) Limited is launching a bookbuilding IPO scheduled to open on 30 October 2026 and close on 3 November 2026. The issue is reported at approximately ₹34.56 crore, comprising a fresh issue and an offer for sale by existing shareholders. The price band is ₹114 to ₹120 per share, with a face value of ₹10 per share. The minimum application for individual investors is two lots, equivalent to 2,400 shares, requiring ₹2,88,000 at the upper price band. Small high-net-worth individual investors must apply for at least three lots, or 3,600 shares, amounting to ₹4,32,000. The allotment is tentatively scheduled for 4 November 2026, followed by refunds and demat credit on 5 November 2026. The shares are expected to list on the NSE SME platform on 6 November 2026. Hem Securities Ltd. is the book-running lead manager, Kfin Technologies Ltd. is the registrar, and Hem Finlease Pvt. Ltd. is the market maker.

HGS (India) Limited IPO Details

Particulars	Details
IPO Date	30 October 2026 to 3 November 2026
Listing Date	6 November 2026
Face Value	₹10 per share
Issue Price Band	₹114 to ₹120 per share
Lot Size	1,200 shares
Total Issue Size	28,80,000 shares (aggregating up to approximately ₹35 crore)
Fresh Issue	23,26,000 shares (aggregating up to approximately ₹27.91 crore, as stated in the overview)
Offer for Sale	5,54,000 shares (aggregating up to approximately ₹6.65 crore)
Issue Type	Bookbuilding IPO
Listing At	NSE SME
Shareholding Pre-Issue	85,32,713 shares
Shareholding Post-Issue	1,08,58,713 shares
Market Maker Portion	1,45,200 shares (aggregating up to approximately ₹2 crore)
Lead Manager	Hem Securities Ltd.
Registrar	Kfin Technologies Ltd.
Market Maker	Hem Finlease Pvt. Ltd.

HGS (India) Limited IPO Reservation

Investor Category	Shares Offered
QIB	Not more than 50% of the Net Offer
Retail	Not less than 35% of the Net Offer
NII (HNI)	Not less than 15% of the Net Offer

HGS (India) Limited IPO Lot Size

Application	Lots	Shares	Amount
Individual Investors (IND)-Minimum	2	2,400	₹2,88,000
Individual Investors (IND)-Maximum	2	2,400	₹2,88,000
S-HNI-Minimum	3	3,600	₹4,32,000
S-HNI-Maximum	6	7,200	₹8,64,000
B-HNI-Minimum	7	8,400	₹10,08,000

HGS (India) Limited IPO Promoter Holding

Shareholding Status	Percentage
Pre-Issue	87.30%
Post-Issue	64.33%

HGS (India) Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)-Pre-Issue	₹13.64
Earnings Per Share (EPS)-Post-Issue	₹12.29
Price/Earnings (P/E) Ratio-Pre-Issue	8.80x
Price/Earnings (P/E) Ratio-Post-Issue	9.76x
Return on Net Worth (RoNW)	13.04%
Net Asset Value (NAV)	₹104.63
Return on Equity (ROE)	13.35%
Return on Capital Employed (ROCE)	17.13%
EBITDA Margin	37.40%
PAT Margin	25.77%
Price-to-Book (P/B) Ratio	1.15x (Post-Issue)

Objectives of the Proceeds

The company proposes to utilise the net proceeds from the IPO for the following purposes:

I. ₹15.05 crore will fund capital expenditure to replace existing machinery at the manufacturing facility in Manesar, Gurugram.

II. ₹1.05 crore will support backward integration by establishing an in-house gold plating facility to strengthen manufacturing capabilities.

III. ₹3.26 crore will fund building infrastructure development on the third floor of the existing Manesar, Gurugram manufacturing facility.

Acquisitions and General Corporate Purposes: A portion of the net proceeds will support unidentified acquisitions and general corporate requirements, subject to the applicable disclosures and limits.

Key Financials (in ₹ crore)

Particulars	30 April 2026	31 March 2026	31 March 2025	31 March 2024
Assets	110.90	110.12	104.04	113.70
Revenue	3.79	48.91	53.45	37.93
Profit After Tax	1.11	11.64	10.51	4.00
Reserves and Surplus	91.80	90.66	87.97	95.47
Net Worth	90.41	89.27	85.16	95.04

IPO Strengths

I. Offers a diverse range of geophones, seismic cables, connectors and geophysical equipment for multiple industries.

II. Has specialised engineering and manufacturing capabilities for precision components and customised products.

III. Maintains long-standing relationships with customers in the seismic and energy sectors.

IV. Follows established quality management standards and holds ISO 9001:2015 and ZED Gold certifications.

V. Has an established sourcing network and in-house component manufacturing capabilities.

VI. Benefits from experienced promoters and a professional management team.

Peer Group Comparison

As per the supplied IPO reference, there are no comparable listed peers identified for HGS (India) Limited. Therefore, comparable-company valuation and financial performance data are not available for a direct listed-peer comparison.