HGS India IPO

About HGS (India) IPO

The HGS (India) IPO opens on TBA and closes on TBA. The allotment of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The initiation of refunds will take place on TBA. The listing of shares will take place on TBA.

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include 23,26,000 shares aggregating up to ₹[TBA] crores. The offer for sale portion includes 5,54,000 shares of ₹10 aggregating up to ₹[TBA] crores. The total number of shares is 28,80,000 and the aggregate amount is yet to be finalised.

HGS (India) IPO’s price band is set at TBA to TBA per share. The lot size for an application is TBA. The minimum amount of investment required by a retail investor is ₹TBA (TBA shares) (based on upper price). The minimum lot size investment for HNI is TBA.

HGS (India) is engaged in the business of manufacturing geophones, geophone strings, seismic cables, geophysical connectors, and parts and accessories for geophysical equipment for the seismic industry within the energy and geoscience sectors. Their products are used in the acquisition of seismic data and are integral to recording and transmitting ground vibration signals for the processing, interpretation, and analysis of subsurface geological structures.

Objectives of HGS (India) IPO

• Funding the capital expenditure towards replacement of plant and machinery for their existing manufacturing facility at Manesar, Gurugram.
  
• Funding the capital expenditure towards backward integration for setting up in-house gold-plating facilities.
  
• Funding the capital expenditure towards infrastructural development of the building on the 3rd floor at their existing manufacturing facility at Manesar, Gurugram.
  
• Pursuing unidentified acquisitions and general corporate purposes.
  

Industry Outlook

India has 26 sedimentary basins covering an area of 3.36 million sqkm spread over onland, shallow water and deep water. As a base to launch future exploration and production (E&P) activities in the country, appraisal of all un-appraised areas by acquiring geo-scientific data with state-of-the-art technology has been embarked on. As a step towards Prime Minister’s vision of reducing India’s energy imports, Ministry of Petroleum & Natural Gas has launched the Central Sector Scheme christened as ‘National Seismic Program’ (NSP) and approved by Cabinet Committee of Economic Affairs for appraisal of onland part of Indian sedimentary basins where no/scanty data is available. Appraisal of un-appraised offshore areas up to EEZ and drilling of parametric wells are also being taken up separately. With the objective for complete appraisal of India's sedimentary basins, Government of India, over the past decade has been implementing various data acquisition campaigns through extensive seismic surveys both onland and offshore. As a result, 79.5% basin area is now appraised for some meaningful subsurface analysis. For more insights of hydrocarbon play systems, four stratigraphic wells are planned for drilling and further, all forms of hydrocarbon resources are now drawn up for re-assessment through expert consultancy.

About HGS (India)

HGS (India), (HGSI) was established in 1986 in technical and financial collaboration with Geosource Inc USA, to manufacture geophone strings, seismic cables & connectors. When Geosource Inc was bought out by HGS Inc USA, Geosource India Limited changed its name to HGS (India) Ltd.

They are engaged in the business of manufacturing geophones, geophone strings, seismic cables, geophysical connectors, and parts and accessories for geophysical equipment for the seismic industry within the energy and geoscience sectors. Their products are used in the acquisition of seismic data and are integral to recording and transmitting ground vibration signals for the processing, interpretation, and analysis of subsurface geological structures. Their products are custom-developed to satisfy specific customer requirements. Their solutions are utilized extensively in oil & gas exploration, defence research, mineral exploration, vibration monitoring, geophysical seabed surveys, earthquake seismology, and applied & academic research industries & institutes. Beyond seismic data acquisition systems, they also manufacture cables and connectors for resistivity meters and radar equipment.

Strengths of HGS (India)

• Wide product portfolio catering to various end user industries.
  
• Precision engineering expertise with complex product manufacturing capabilities.
  
• Long term and well-established relationships with customers.
  
• Focus on quality assurance.
  
• Established supply chain and sourcing network.
  

Risks of HGS (India)

• Their business is dependent on the sale of their products to certain key customers and they do not have any long term contracts with any of these customers.
  
• They derive a portion of their revenues from exports and are subject to risk of international trade in multiple countries including Netherlands where their wholly owned subsidiary is located.
  
• They derive a significant portion of their revenue from the sale of their key product i.e. Geophones Strings/Harness and Seismic Cables.
  
• Their reliance on certain industries for a significant portion of their sales could have an adverse effect on their business.
  
• Their company is dependent on a limited number of suppliers for procurement of raw materials and components.
  

Anchor Investor Bidding Date: TBA

Registrar: KFin Technologies Limited Book Running Lead Managers: HEM Securities Limited

HGS (India) Business Model

The company earns its revenue through manufacturing geophones, geophone strings, seismic cables, geophysical connectors, and parts and accessories for geophysical equipment for the seismic industry within the energy and geoscience sectors.

HGS (India) Growth Trajectory

HGS (India)’s Total Income for FY25 was ₹53.452 crores, whereas in FY24 and FY23 it was ₹37.927 crores and ₹33.774 crores, respectively.

The Profit After Tax for FY25 was ₹10.505 crores, whereas in FY24 and FY23 it was ₹3.998 crores and ₹3.667 crores, respectively.

Their EBITDA for FY25 was ₹15.308 crores, whereas in FY24 and FY23 it was ₹6.159 crores and ₹6.368 crores, respectively.

HGS (India) Market Position

As a Star Export House, they maintain a broad global client base across the United States, Germany, Sweden, Switzerland, Estonia, Slovakia, Netherlands, South Africa, Saudi Arabia, Australia, Spain, United Kingdom, Norway, Ukraine, Brazil, Canada, Indonesia, Denmark, UAE and many other nations.

As of 31 March 2025, the company’s Total Income, Profit After Tax, and EBITDA were ₹53.452 crores, ₹10.505 crores, and ₹15.308 crores, respectively.

How to apply for HGS (India) IPO?

• Step 1: Log in to your Kotak Neo Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details. Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification. Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve