HGS (India) Limited has announced its public issue details for investors tracking the SME segment on the NSE Emerge platform. Established in 1986, the company manufactures specialized seismic data acquisition equipment and geophysical instruments used in underground resource exploration. The public subscription window opens on 30 October 2026 and closes on 3 November 2026. With a total issue size scaling up to INR 34.56 crore, the company aims to fund its capital expenditure and expansion initiatives.
Company Overview and Business Model
Operating under the “HG” brand, HGS (India) builds geophones, geophone strings, seismic cables, geophysical connectors, and related accessories. These instruments detect ground vibrations and transmit signals required to map underground geological structures. Its product applications span oil and gas exploration, mineral search, earthquake monitoring, vibration analysis, and geophysical seabed surveys.
The company operates an integrated manufacturing facility in Manesar, Haryana. This plant utilizes injection moulding equipment, extrusion lines, precision assembly stations, and in-house testing laboratories. Its product portfolio also includes seismometers, seismographs, and accelerographs. International operations are supported by a wholly owned Netherlands subsidiary, HGS Products B.V., established in 2015 to handle overseas customer engagement. International markets remain a core pillar, with exports generating 84.22% of total revenue in FY 2025-26. Geophone strings and harnesses represent the largest revenue contributor at 66.29%. As of April 2026, the company employs 162 permanent staff and 15 contractual workers.
IPO Structure and Key Parameters
The book-built issue is structured with a price band set between INR 114 and INR 120 per share, carrying a face value of INR 10. The total offering consists of a fresh issue of 23,26,000 shares raising INR 26.52 to 27.91 crore alongside an offer for sale of 5,54,000 shares amounting to INR 6.32 to 6.65 crore. The cumulative issue size reaches 28,80,000 shares valued between INR 32.83 and 34.56 crore.
| IPO Parameter | Details |
|---|---|
| Opening Date | 30 October 2026 |
| Closing Date | 3 November 2026 |
| Price Band | INR 114 to INR 120 per share |
| Lot Size | 1,200 shares (INR 1,44,000 minimum investment) |
| Minimum Retail Bid | 2,400 shares (INR 2,88,000) |
| Total Issue Size | INR 32.83 to 34.56 crore |
| Fresh Issue | 23,26,000 shares |
| Offer for Sale | 5,54,000 shares |
| Listing Exchange | NSE Emerge |
| Registrar | KFin Technologies Limited |
Objects of the Issue
The net proceeds generated from the fresh issue will be deployed across specific capital expenditure and corporate requirements:
- Allocating INR 15.05 crore toward replacing plant and machinery at the Manesar manufacturing facility in Gurugram.
- Investing INR 1.05 crore for backward integration to establish an in-house gold plating unit.
- Dedicating INR 3.26 crore to infrastructural development on the second floor of the existing Manesar plant.
- Reserving the remainder for potential acquisitions and general corporate objectives.
Financial Performance Overview
The available financial data demonstrates steady top-line expansion and significant margin improvements across recent fiscal periods.
| Metric (INR Crore) | FY 2024 | FY 2025 | FY 2026 | 1M FY 2027 |
|---|---|---|---|---|
| Revenue | 35.48 | 49.08 | 45.16 | 3.11 |
| Expenses | 33.25 | 39.63 | 33.50 | 2.33 |
| Net Income (PAT) | 4.00 | 10.51 | 11.64 | 1.11 |
| Net Margin (%) | 11.27% | 21.40% | 25.77% | 35.80% |
Valuation and Market Analysis
Financial and Business Impact
Based on the reported financial statements, HGS India exhibits robust operational scaling. Revenue grew from INR 35.48 crore in FY 2024 to INR 49.08 crore in FY 2025, before registering INR 45.16 crore in FY 2026. Despite a minor contraction in total turnover during FY 2026, net income improved consistently from INR 4.00 crore to INR 10.51 crore and further to INR 11.64 crore. This indicates enhanced operational efficiency and better cost management.
Profitability ratios underline this trend. The net profit margin expanded from 11.27% in FY 2024 to 25.77% in FY 2026, reaching 35.80% in the one-month period of FY 2027. EBITDA margins followed a similar trajectory, moving from 17.36% to 37.40% over the same timeframe. Return on Net Worth (RONW) increased from 4.21% to 13.04%, while Return on Capital Employed (ROCE) advanced from 4.88% to 17.13%. Notably, the company maintains a debt-free balance sheet with a debt-to-equity ratio of 0.0 across all reported fiscal periods.
Valuation Assessment
At the upper price band limit of INR 120, the pre-issue earnings per share (EPS) for FY 2026 stands at INR 13.64, translating to a pre-issue price-to-earnings (P/E) ratio of 8.36 to 8.80. The post-issue diluted EPS is calculated at INR 10.72, placing the post-issue P/E ratio between 10.64 and 11.20. The price-to-sales ratio for FY 2026 stands between 2.15 and 2.27 on a pre-issue basis, and between 2.74 and 2.89 post-issue. These valuation multiples appear moderate relative to the expanding bottom line and zero-debt status, though investors must weigh the cyclical nature of oil and gas exploration spending against export concentration.
Key Takeaways
- HGS India operates in niche seismic data acquisition and geophysical equipment manufacturing with strong export exposure of 84.22%.
- The IPO is scheduled to run from 30 October 2026 to 3 November 2026 on the NSE Emerge platform.
- The total issue size ranges between INR 32.83 and 34.56 crore at a price band of INR 114 to 120 per share.
- Net profit grew to INR 11.64 crore in FY 2026 with net profit margins expanding to 25.77%.
- The company operates with zero debt, reflecting a clean balance sheet prior to public deployment.
- Net proceeds will primarily fund machinery replacement at the Manesar facility, infrastructural upgrades, and backward integration.
Frequently Asked Questions
The HGS India IPO opens for bidding on 30 October 2026 and closes on 3 November 2026.
The price band is fixed between INR 114 and INR 120 per equity share.
The total IPO size is between INR 32.83 crore and INR 34.56 crore, comprising 28,80,000 shares.
The equity shares will be listed on the NSE Emerge platform.
KFin Technologies Limited serves as the registrar for the issue.
The proceeds will fund plant and machinery replacement at Manesar, backward integration for a gold plating facility, infrastructural development, and general corporate purposes.
HGS India reported a net profit of INR 11.64 crore for FY 2026.
