HGS India IPO sees 219 times subscription on final day; shares attract double-digit GMP

Investors have placed bids for 45.26 crore equity shares in the last three days from October 30, against offer size of 20.66 lakh shares via 1.13 lakh applications, as of 15:30 hours IST. Non-institutional investors were at the forefront to boost subscription numbers, bidding 416.7 times their allotted quota. The parts set aside for retail investors and qualified institutional buyers attracted 218.6 times and 128.3 times subscription, respectively.

New Delhi-based HGS India is expected to finalise IPO share allotment by November 4 and is likely to make its debut on the NSE Emerge platform on November 6. In the grey market, IPO shares traded at around 20 percent premium over the issue price, according to the market observers. The grey market is an unofficial platform for trading in the IPO shares till their listing on the stock exchanges. HGS India manufactures geophones, geophone strings, seismic cables, geophysical connectors, and accessories for geophysical equipment for the seismic data collection.

Its solutions are utilised extensively in oil & gas exploration, defence research, mineral exploration, vibration monitoring, geophysical seabed surveys, earthquake seismology, and applied & academic research industries & institutes. The company intends to utilise Rs 15.04 crore of net fresh issue proceeds for replacement of plant and machinery for existing manufacturing facility at Manesar, Gurugram.

Further, Rs 1.05 crore will be spent for backward integration for setting up in-house gold plating facility, Rs 3.26 crore for infrastructural development of building on second floor at existing manufacturing facility, and the remainder funds for unidentified acquisitions and general corporate purpose. On the financial front, HGS India recorded profit at Rs 11.64 crore for the year ended March 2026, growing 10.8 percent from Rs 10.5 crore in previous fiscal.

However, revenue from operations during the same period fell 8 percent to Rs 45.16 crore from Rs 49.1 crore. HEM Securities is acting as the merchant banker for managing the HGS India IPO.