HGS India SME IPO Subscribed 20.84 Times on Day 2 Driven by Strong NII and Retail Demand
The initial public offering (IPO) of geophysical equipment maker HGS (India) Limited saw aggressive bidding on Monday, November 2, 2026, closing its second day with an overall subscription of 20.84 times. Strong interest across non-institutional and retail individual investor categories drove the momentum for the ₹34.56 crore public issue.
By the end of Day 2 bidding, the issue had received applications for over 4.00 crore equity shares against the net offer of 19.21 lakh equity shares on the NSE SME platform.
Category-Wise Subscription Breakdown
Investor demand remained robust across all segments on the second day of the bidding window:
- Non-Institutional Investors (NII): The segment was subscribed 31.52 times, receiving bids for over 1.30 crore shares against the 4.14 lakh shares on offer. Within this bracket, the big NII portion (bids above ₹10 lakh) was subscribed 33.54 times, while the small NII portion (bids below ₹10 lakh) stood at 27.58 times.
- Retail Individual Investors (RII): Individual investors bid 25.32 times the reserved quota, placing bids for 2.43 crore shares against the 9.60 lakh shares available for the segment.
- Qualified Institutional Buyers (QIB): Excluding the anchor investor allocation, the institutional buyer portion was booked 4.88 times, with bids received for 26.72 lakh shares compared to 5.47 lakh shares on offer.
Issue Structure and Anchor Round
HGS (India) launched its book-built IPO in a price band of ₹114 to ₹120 per equity share, with a lot size of 1,200 shares. The overall issue consists of a fresh issuance of 23.26 lakh shares worth ₹27.91 crore and an offer for sale (OFS) of 5.54 lakh shares worth ₹6.65 crore by promoter and early shareholders.
Ahead of opening for public subscription, the company mobilized ₹9.76 crore from anchor investors on October 29, 2026, allotting 8.13 lakh equity shares at the upper price ceiling of ₹120 per share.
Fund Utilization and Company Background
Incorporated in 1986, HGS (India) Limited designs and manufactures seismic data acquisition instruments, geophones, geophone strings, seismic cables, and specialized connectors catering to oil and gas exploration, mining, and geoscience research. The company operates manufacturing units in Manesar, Gurugram.
The net proceeds from the fresh capital raise will be utilized towards:
- Funding capital expenditure for replacing plant and machinery at the Manesar manufacturing facility.
- Establishing an in-house gold plating facility for backward integration.
- Infrastructural development on the second floor of the Manesar facility.
- General corporate purposes and exploring unidentified inorganic acquisitions.
Key IPO Dates
Hem Securities Limited is serving as the sole book-running lead manager to the issue, while KFin Technologies Limited is the registrar. Hem Finlease is acting as the market maker.
The three-day subscription window concludes on Tuesday, November 3, 2026. The basis of allotment is expected to be finalized on Wednesday, November 4, 2026, followed by the initiation of refunds and credit of shares to demat accounts. Shares of HGS (India) are slated to list on the NSE SME platform on Friday, November 6, 2026.
