HGS India Files DRHP for Rs 34.56 Crore SME IPO With Rs 19.36 Crore Capex Plan
Geophysical equipment manufacturer HGS (India) Limited has set the stage for its primary market debut with the filing of its Draft Red Herring Prospectus (DRHP). The public issue, structured to raise up to Rs 34.56 crore, is scheduled to open for subscription on October 30, 2026, and close on November 3, 2026, with proposed listing on the NSE Emerge platform.
Issue Structure and Price Band
The book-built issue is priced in the band of Rs 114 to Rs 120 per equity share with a face value of Rs 10 each.
The public offering comprises:
- A fresh issue of 23.26 lakh equity shares aggregating to Rs 27.91 crore.
- An Offer for Sale (OFS) of 5.54 lakh equity shares aggregating to Rs 6.65 crore by existing selling shareholders.
The minimum application lot size is set at 1,200 shares, translating into an investment threshold of Rs 2,88,000 for retail individual bidders at the upper end of the price band. High-net-worth individuals (HNIs) must apply for a minimum of 3 lots (3,600 shares), amounting to Rs 4,32,000. Anchor investor bidding is scheduled to open a day ahead of the main issue on October 29, 2026.
Hem Securities Limited is acting as the sole Book Running Lead Manager to the issue, while KFin Technologies Limited has been appointed as the registrar.
Capital Expenditure and Utilisation of Proceeds
A central feature of the issue is the company's dedicated capital expenditure plan. Out of the net proceeds, HGS (India) has earmarked Rs 19.36 crore towards upgrading manufacturing capabilities, modernising existing facilities, and executing backward integration initiatives. The rest of the fresh capital will be directed towards meeting working capital needs and general corporate purposes.
The planned backward integration is designed to enhance internal component fabrication, control production lead times, and preserve margins across its precision engineering operations.
Business Operations and Export Footprint
Incorporated in February 1986 under technical and financial collaboration with Geosource Inc., USA, the company was originally known as Geosource India Limited before rebranding to HGS (India) Limited in 1992. The company operates under the "HG" brand, designing and manufacturing geophones, geophone strings, seismic telemetry cables, connectors, and geophysical sensors.
Its specialised portfolio caters to oil and gas exploration, mineral surveying, earthquake monitoring networks, defence research, and industrial vibration analysis. The company also manufactures wiring systems and specialised connectors used in radar assemblies and resistivity measurement systems.
Over the years, HGS (India) has built an extensive global footprint. In the financial year ended March 31, 2026 (FY26), exports accounted for 84.22% of its total revenue, driven by overseas seismic exploration and geophysical service contractors.
Financial Highlights
For FY2025–26, HGS (India) reported total revenue of Rs 4,516.41 lakh (Rs 45.16 crore). The company demonstrated robust operational profitability, posting an EBITDA margin of 37.40%.
The planned capital expenditure and public listing on NSE Emerge come amid sustained demand for specialised seismic hardware in domestic and overseas hydrocarbon exploration, as upstream oil and gas firms continue surveying new blocks and expanding seismic monitoring operations.
