HGS (India)
- HGS (India) is coming out with an initial public offering (IPO) of 28,80,000 shares in a price band of Rs 114-120 per equity share.
- The issue will open on October 30, 2026 and will close on November 3, 2026.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 11.40 times of its face value on the lower side and 12.00 times on the higher side.
- Book running lead manager to the issue is HEM Securities.
- Compliance Officer for the issue is Shruti Gupta.
Profile of the company
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). The company 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. Its 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.
The company’s product portfolio includes Geophone Elements precision-engineered for high-resolution surveys, including ultrasensitive models for passive monitoring. Alongside these, it manufactures custom-configured Geophone Strings tailored for land and marsh environments. Beyond core sensor technology, its offerings span the full spectrum of seismic accessories. This includes Seismographs & Accelerographs, Seismometers, Seismic System Cables, Panel-mount Connectors, Battery Chargers and equipment like Weight Drops and Pig Tracking Systems. This wide range ensures seamless client compatibility across diverse field operations. The company manufactures its products under the brand name 'HG' that sets the standard for quality and reliability. Over the years, it has also invested in backward integration where it focuses on critical component manufacturing with multiple extrusion and cable lines to meet wire and cable requirements and 16 Injection Moulding Machines to manufacture components internally. This vertical integration ensures absolute quality control over every input used in their final assemblies.
It manufactures its products utilizing raw materials like: engineered plastic granules, copper, brass, aluminium and stainless steel and mild steel and special conductors designed to meet the operational and quality standards of its vast product-line. The company’s products are custom-developed to satisfy specific customer requirements. Its 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, it also manufactures cables and connectors for resistivity meters and radar equipment. As a One-Star Export House, the company maintains 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. Its primary focus is delivering integrated services to global seismic contractors and major oil companies.
Proceed is being used for:
- Funding the capital expenditure towards replacement of plant and machinery for its existing manufacturing facility at Manesar, Gurugram
- Funding the capital expenditure towards Backward Integration for setting up in-house gold-plating facility
- Funding the capital expenditure towards Infrastructural development of building on 2d Floor at its existing manufacturing facility at Manesar, Gurugram
- Pursuing unidentified acquisitions and general corporate purpose
Industry Overview
In recent years, the Government of India has undertaken a series of transformative initiatives to boost hydrocarbon exploration across both conventional and frontier basins. Strategic campaigns such as the National Seismic Programme (NSP) have enabled extensive 2D seismic data acquisition in underexplored basins, laying the ground work for more informed bidding and exploration. Complementing this, Mission Anveshan was launched as an infill seismic campaign to sharpen subsurface imaging and fill critical data gaps. A major game changer has been the opening up of previously restricted No-Go offshore areas, unlocking nearly 99% of India’s Exclusive Economic Zone (EEZ) for E&P activities. To support data-driven exploration, the National Data Repository (NDR) has been a key enabler by providing centralized access to India’s geoscientific data. The upcoming launch of NDR 2.0, with improved interface and analytical capabilities, is set to further empower operators and investors. Together, these efforts reflect a coherent national strategy to unlock the full potential of India’s sedimentary basins and attract sustained investment in exploration.
India's sedimentary basins have proven petroleum systems. The country is one of the 171 petroleum provinces independently mapped by U.S. Geological Survey (USGS) in 2012. The basin area occupies 50% of country's onland area and 73% of country's offshore within Exclusive Economic Zone (EEZ). With 26 sedimentary basins mapped and assessed, India has discovered petroleum of 12.0 billion tonnes of oil equivalent and undiscovered risked potential of 12.9 billion tonnes of oil equivalent. While this is an estimate of conventional petroleum occurrence, unconventional petroleum exists in form of coal seam gas, shale plays, tight plays, basement fractures and gas hydrate. Sedimentary basins are divided into three categories mapping conventional resources and following the rationale of Petroleum Resources Management System (PRMS).
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 are 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. A country-level plan is chalked out to bring out hydrocarbon potential and their maturity in a holistic manner for a realistic assessment of fossil-fuels, to optimally align with the energy transition initiatives. With a futuristic view, the current version portrays a succinct treatise of India's sedimentary basins in terms of basic geology, brief exploration history, present status and data availability. The sub-chapters are segregated into three clusters aligned with major geological provinces (East Coast, West Coast and Other Onland basins) focusing on the upcoming Hydrocarbon Resource Assessment Study (HRAS 2025).
Pros and strengths
Wide range of seismic data acquisition equipment: The company offers a comprehensive range of products for the seismic industry within the energy and geoscience sector. Its core offerings encompass geophones, seismic cables, and connectors essential for high-precision data acquisition. Beyond sensor technology, its portfolio includes accessories and systems such as seismographs, seismometers, magnetometers, and specialized heavy-duty equipment like weight drops and pig tracking systems. By addressing the entire seismic value chain from field data capture and signal transmission to power management, it enables customers to source compatible, integrated equipment from a single platform. This holistic approach significantly improves operational efficiency while reducing procurement complexity.
Strong manufacturing expertise supported by specialized equipment: The company possesses around 40 years of manufacturing experience, inherited from foundational partnerships with a global Company Geosource Inc. (USA). The company is equipped with in-house capabilities of developing and manufacturing geophones, geophone strings, seismic cables, geophysical connectors, and parts and accessories for geophysical equipment for the seismic industry. The company’s manufacturing activities are characterized by tight dimensional tolerances, consistent material properties, and high levels of assembly accuracy to ensure accurate detection and transmission of subsurface vibration signals, capital investment, dependence on instrumentation, software, and skilled manpower allow it to consistently provide quality products. The company’s core manufacturing capabilities include Precision Geophone Element Assembly, Wire and Cable Extrusion, Injection Moulding (Vertical and Horizontal), Coil Winding and Magnetizing, Automated and manual assembly and testing.
Long-term customer engagement and stable order flows: The company has developed long-standing and stable relationships with customers engaged in seismic surveys, exploration activities, and geoscience applications, primarily through consistent product quality, manufacturing reliability, and technical dependability. As a manufacturer of critical seismic equipment including geophones, seismic cables, connectors, and related accessories its products are integral to customers’ field operations, where performance failures can directly impact data quality and project outcomes. The company’s manufacturing processes are aligned with customer’s technical requirements, enabling repeat orders for standardized products as well as continued engagement for customized assemblies and specialized equipment. These long-term customer relationships provide the company with stable order flows, improved production planning visibility, and lower customer acquisition costs.
Risks and concerns
Significant revenue concentration and customer dependency: The company’s business is dependent on the sale of its products to certain key customers and it does not have any long-term contracts with any of these customers. The company has garnered revenue of 90.05%, 72.58%, 56.24% and 61.24% from top 10 customers for the period ended April 30, 2026 and Fiscal 2026, Fiscal 2025 and Fiscal 2024. The loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
Potential business impact of manufacturing equipment failures: The company’s business is dependent on its manufacturing facility and the company is subject to certain risks in its manufacturing process. Obsolescence, destruction, theft, breakdowns of its major plants or machineries or failures to repair or maintain the same or technology failures could disrupt its operations and have a material adverse effect on its business, results of operation or financial condition.
Significant revenue concentration in key product categories: The company derives a significant portion of its revenue from the sale of its key product i.e. Geophones Strings/Harness and Seismic Cables. The company’s revenue from operations during the stub period ended on April 30, 2026 and in last three financial years Fiscal 2026, 2025 and 2024 are significantly dependent on its revenue from sales of Geophones Strings/Harness which represented 58.25%, 66.29%, 51.15% and 66.98% of its revenue from operations and revenue from sales of Seismic Cables which represented 39.41%, 20.39%, 26.95% and 23.06% of its revenue from operations during the said periods. An inability to anticipate or adapt to evolving upgradation of the required products or inability to ensure product quality or reduction in the demand of these products may adversely impact its revenue from operations and growth prospects.
Outlook
HGS (India) manufactures geophones, geophone strings, seismic cables, connectors and accessories used in seismic data collection and geophysical equipment. Established in technical and financial collaboration with Geosource Inc., USA, the company operates under the “HG” brand. The company offers a diverse range of geophones, seismic cables, connectors and geophysical equipment for multiple industries. It has specialised engineering and manufacturing capabilities for precision components and customised products. On the concern side, the company derives a portion of its revenues from exports and are subject to risk of international trade in multiple countries including Netherlands where its wholly owned subsidiary is located. Moreover, the impact of the USA- Iran War, Russian invasion of Ukraine, the Israel-Hamas war and the Iran-Israel conflict on the global economy is uncertain, but may prove to negatively impact its business and operations.
The company is coming out with a maiden IPO of 28,80,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 114-120 per equity share. The aggregate size of the offer is around Rs 32.83 crore to Rs 34.56 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company reported a sales decrease of 7.98% from Rs 4907.98 lakh in FY25 to Rs 4516.41 lakh in FY26, primarily driven by an 8.35% decrease in sale of Finished goods from Rs 4811.91 lakh in FY25 to Rs 4410.10 lakh in FY26. Moreover, profit after tax for FY26 increased to Rs 1164.03 lakh as compared to Rs 1050.55 lakh in the financial year FY25.
Meanwhile, the company seeks to leverage its capabilities, including its manufacturing facility and quality control practices, to further expand its product portfolio. By developing upgraded technological advanced products, the company can successfully expand its product offerings to larger customer base. Recently, the company developed the HG-5VHS (Very High Sensitivity) and HG-2 (Low Frequency) advanced sensors and launched them in the first round of commercialization. In addition, it intends to continue to focus on its ability to customize its products according to the specific requirements of its customers and broaden its portfolio.
