HGS (India) Limited (CIN U74899DL1986PLC023341) has filed a Red Herring Prospectus with SEBI for an IPO comprising a fresh issue of 23,26,000 shares and an offer for sale of 5.54 lakh shares, priced at ₹114.00 to ₹120.00 per share. In FY26 it reported revenue of ₹45 Cr (-8.0% on FY25) and a net profit of ₹12 Cr. Promoters hold 67.5% before the IPO.
Read from public SEBI filings; last updated . Not investment advice.
Key signals
Read from the filing. Signals summarise it; they are not a recommendation or investment advice.
Not checkedWe no longer check the filing's claims against the web, so there are no look-ups for this company.
How we rate these
Valuation: P/E at the top of the band: up to 25x good, up to 40x watch, above that concern.
Growth: Sales growth per year: 20% or more good, 8% or more watch, below that concern.
Profitability: Net profit margin: 10% or more good, 4% or more watch, below that concern. The trend note compares operating margin with the year before (1.5 points either way).
Debt: Borrowings / net worth: up to 0.5x good, up to 1.5x watch, above that concern.
Profit into cash: Cash from operations as a share of net profit: 80% or more good, 40% or more watch, below that (or negative) concern.
One-off income: Other and one-off income as a share of pre-tax profit: up to 10% good, up to 30% watch, above that concern. Any one-off item management itself describes moves "good" to "watch".
Where the money goes: Offer for sale as a share of the whole issue: under 40% good, under 75% watch, above that concern. In an offer for sale the money goes to the selling shareholders, not the company.
Red flags: Earlier web look-ups of the filing's claims: any high-concern finding is concern, any medium is watch, otherwise good.
Rules are rules of thumb, not a verdict: a fast-growing business can reasonably carry a higher P/E, and some sectors run on debt.
The IPO
What HGS (India) Limited is offering, at what price, and who owns it today. Read from the RHP; anything the company hasn't fixed yet shows as pending.
IPO dates announced
Bidding 30 Oct 2026 to 3 Nov 2026.
Fresh issue
₹28 Cr
23.26 lakh shares at ₹120.00, the top of the band
Offer for sale
₹6.6 Cr
5.54 lakh shares at ₹120.00, the top of the band
Price band
₹114.00 – ₹120.00
From NSE -- may be revised once the filing states its own band; lot of 1200 shares, from ₹1,36,800
Funding the capital expenditure towards replacement of plant and machinery for our existing manufacturing facility at Manesar, Gurugram
15
78%
Capex
Funding the capital expenditure towards Backward Integration for setting up in-house gold plating facility
1.1
5.4%
Capex
Funding the capital expenditure towards Infrastructural development of building on 2nd Floor at our existing manufacturing facility at Manesar, Gurugram.
3.3
17%
General corporate
Pursuing unidentified acquisitions and general corporate purpose
Not fixed yet
n/a
Amounts marked “not fixed yet” are left blank in the draft and are set once the price is decided. The offer-for-sale portion is not shown here: that money goes to the selling shareholders, not the company. Source: page 106
Who owns it
Promoters hold before the IPO
67.5%
As stated in the filing. The full shareholding table could not be cross-checked.
Valuation
At the price band
Low end
High end
Price per share
₹114.00
₹120.00
Market cap after IPO
₹124 Cr
₹130 Cr
P/E (FY26 profit)
10.63x
11.19x
Price / book value
0.84x
0.88x
Price / sales
2.74x
2.89x
Post-issue market cap divided by FY26 figures from the filing. A loss-making company has no P/E. Total issue size at the top of the band: ₹35 Cr. Price band is from NSE; not yet stated in this filing.
Business model
Is HGS (India) Limited a good business, and why? Its market, industry, edge and team, each rated by a stated rule.
One-off items management describes in its own discussion of the results. They are real, but they do not come from day-to-day operations and may not repeat, so an analyst would set them aside when judging the recurring business.
Other
The company reported a net gain/loss on sale of investments of ₹0.76 lakhs during the period ended April 30, 2026.
Provisions/Credit balances/Liabilities written back of ₹0.03 lakhs and Provision written back for Warranty expenses of ₹1.66 lakhs are included in other income.
As printed in the filing's summary financial information, converted to ₹ crore.
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.63
Line item
FY24
FY25
FY26
1M Apr-26
Revenue From Operations
35
49
45
3.1
Other Income
2.5
4.4
3.8
0.68
Total Income (1+2)
38
53
49
3.8
Finance Costs
0.05
0.11
0.00
0.00
33
40
34
2.3
Expenses
Cost of Material Consumed
6.4
15
9.0
0.56
(b)
Change in Inventories of Finished
Goods, Stock in Transit, Intermediate
Goods and WIP
5.1
2.2
-0.20
-0.30
Employee Benefit Expenses
14
14
15
1.3
Depreciation and Amortisation
Expenses
1.5
1.5
1.5
0.12
Other Expenses
5.9
6.6
8.0
0.67
Profit Before Exceptional & Extraordinary items & Tax (3-5)
4.7
14
15
1.5
Profit Before Extraordinary items & Tax (6-7)
4.7
14
15
1.5
Profit Before Tax (8-9)
4.7
14
15
1.5
0.68
3.3
3.8
0.35
Exceptional item & Extraordinary
Items
0.00
0.00
0.00
0.00
Prior Period Expenses
0.00
0.00
0.00
0.00
Tax Expense:
Net Current Tax
0.64
3.3
4.0
0.22
Income Tax relating to earlier periods
0.09
0.03
-0.04
0.00
Deferred Tax
-0.04
-0.05
-0.15
0.12
Profit for the Year (10-12)
4.0
11
12
1.1
Basic (₹)
3.5
11
14
1.3
3.5
11
14
1.3
Earning per equity share of ₹10/-
each
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.62
Line item
FY24
Apr-25
FY26
1M Apr-26
105
95
99
100
EQUITY AND LIABILITIES
Shareholders' Funds
Share Capital
9.5
7.1
8.5
8.5
Reserves & Surplus
95
88
91
92
Long Term Borrowings
0.00
0.00
0.00
0.00
4.4
4.2
4.5
4.2
Non-Current Liabilities
Deferred Tax Liabilities (net)
0.95
0.89
0.75
0.87
Other Long-term liabilities
0.36
0.36
0.36
0.36
Long Term Provisions
3.1
2.9
3.4
2.9
Short Term Borrowings
0.00
0.00
0.00
0.00
4.4
4.8
6.5
7.4
Current Liabilities
Trade Payables
Due to Micro and Small Enterprises
0.15
0.06
0.19
0.18
Due to Others excluding Micro and Small Enterprises
0.24
1.1
0.82
1.2
Other Current Liabilities
3.4
2.4
3.7
4.2
Short Term Provisions
0.57
1.2
1.8
1.9
Total Equity and Liabilities (1+2+3)
114
104
110
112
Property, Plant and Equipment
39
38
37
37
40
39
38
38
ASSETS
Non-Current Assets
Property, Plant and Equipment and Intangible
Assets
Intangible Assets
0.03
0.02
0.03
0.03
Capital Work in progress
0.05
0.00
0.00
0.00
Non-Current Investment
0.00
0.00
0.00
0.00
Long Term Loans & Advances
1.0
0.08
0.08
0.08
Other Non-Current Assets
0.31
0.32
0.34
0.34
Inventories
42
38
45
46
Trade Receivables
1.4
2.8
3.9
1.8
74
65
72
74
Current Assets
Current investments
16
16
16
17
Cash and Bank Balances
4.8
6.9
5.8
7.6
Short-Term Loans and Advances
8.5
1.0
0.65
0.80
Other Current Assets
0.27
0.30
0.84
0.90
Total Assets (1+2)
114
104
110
112
₹ crore (per-share figures in ₹), as restated in the filing. Click + to see what a line is made of.Source p.64p.65
Line item
FY24
FY25
FY26
1M Apr-26
Net Profit before tax as per Statement of Profit & Loss
4.7
14
15
1.5
Loss/(profit) on sale of Property, Plant and Equipment
0.08
0.00
-0.01
0.00
Loss/(profit) on sale of investments
-0.47
-1.5
-0.31
-0.01
Operating profit before working capital changes
3.8
14
17
1.0
9.6
14
6.1
3.3
Cash Flow From Operating Activities:
Adjustment for:
Depreciation and amortization Expenses
1.5
1.5
1.5
0.12
Finance Costs
0.05
0.11
0.00
0.00
Effect of Foreign Currency translation reserve
-0.16
-0.06
0.15
0.03
Interest Income on fixed deposits
-0.09
-0.08
-0.08
-0.01
Income from Investments
-0.01
-0.00
-0.15
0.00
Unrealised Exchange Loss/(Gain) on closing restatement of receivable and payable
-0.01
-0.00
-0.08
-0.02
Provisions for Leave Encashment/Gratuity
-1.8
0.12
0.56
-0.55
Provisions for Warranty expenses
0.07
0.12
0.13
0.01
Provisions and Liability no longer required written back
-0.03
-0.04
-0.04
-0.00
Changes in Working Capital
(Increase)/Decrease in Trade Receivables
1.8
-1.4
-0.97
2.1
(Increase)/Decrease in Inventory
4.9
4.4
-7.4
-0.46
(Increase)/Decrease in Long-Term Loans & Advances
0.00
0.00
-0.01
0.00
(Increase)/Decrease in Other Non-current assets
0.00
-0.02
-0.01
-0.00
(Increase)/Decrease in Short Term Loans & Advances
-0.05
-0.52
0.39
-0.15
(Increase)/Decrease in Other Current Assets
-0.04
-0.02
-0.51
-0.06
Increase/(Decrease) in Trade Payables
-0.20
0.81
-0.18
0.33
Increase/(Decrease) in Other Current Liabilities
0.49
-0.97
1.3
0.51
Increase/(Decrease) in Other Non-current
Liabilities
0.17
0.00
0.00
0.00
Cash generated from operations
11
16
9.7
3.3
Less:- Income Taxes paid
-1.3
-2.2
-3.6
-0.01
Bank Balances other than cash and cash equivalents
-0.84
0.78
-0.11
0.00
-7.7
9.3
0.33
-1.5
Cash Flow From Investing Activities: Purchase of Fixed Assets
-1.6
-1.1
-0.81
-0.01
Capital work in progress
-0.05
0.05
0.00
0.00
Sale of Fixed Assets
0.13
0.01
0.03
0.00
Sale of Investments
19
30
11
0.50
Purchase of Investment
-16
-29
-10.0
-2.0
Interest in Fixed Deposits
0.08
0.07
0.05
0.00
Income from Investments
0.01
0.00
0.15
0.00
Short Term Loan given
-9.5
0.00
0.00
0.00
Proceeds from Repayment of Short Term Loan
1.5
8.0
0.00
0.00
-3.4
-20
-7.7
-0.00
Cash Flow From Financing Activities: Dividend paid
-3.3
-4.3
-7.7
0.00
Payment of Fractional Bonus shares
0.00
0.00
-0.00
0.00
Buy back of Shares
0.00
-13
0.00
0.00
Tax on Buy-back of Equity shares
0.00
-3.0
0.00
0.00
Payment of Finance Costs
-0.05
-0.11
-0.00
-0.00
Net Proceeds from Short Term Borrowings
0.00
0.00
-0.00
0.00
Net Increase/(Decrease) In Cash & Cash Equivalents (A+B+C)
-1.5
2.9
-1.2
1.8
2.8
5.8
4.6
6.3
Cash equivalents at the beginning of the year
4.3
2.8
5.8
4.6
Cash equivalents at the end of the period
2.8
5.8
4.6
6.3
Cash on hand
0.00
0.01
0.05
0.05
Balance With banks
2.8
5.8
4.5
6.3
Discounted cash flow
What HGS (India) Limited's cash flow would be worth today. Change the rate, time period or growth to see how sensitive the answer is.
% / yr
years
% / yr
Worth today (10 years of cash)
₹67 Cr
Per share
₹62.16
Top of the price band
₹120.00
DCF value is 48.2% below it.
Projected cash flow (₹ Cr) Worth today at 10.9% a yearAlong the bottom: years from now
Starting rate 10.9%: the cost of equity for the industry group Diversified, September 2026. It is the 10-year government bond yield of 7.41% less India's default spread of 1.87%, plus beta 0.76 from 5 listed companies times an equity risk premium of 7.08%. The yield is from Investing.com, India 10-year bond yield (historical data page); the premium is from Damodaran, Country Default Spreads and Risk Premiums (NYU Stern). Change the rate above to test other views.
Starts from FY26 cash from operations of ₹6.1 Cr, grown 12.8% a year (based on revenue growth FY24–FY26, capped at 20%) and discounted at 10.9% a year, with no value counted beyond year 10. Per share uses the shares outstanding after the IPO at the top of the band. A simple illustration from the filing's numbers, not a forecast or investment advice; small changes to the rate or growth move the answer a lot.
The short version
Start here. The story in a few minutes, with every fact tied to the page it came from.
HGS is actually losing money on every rupee it makes in cash, with operating cash being just 53% of its accounting profit.
HGS IPO: From Lost Money to ₹288 Cr
So how is a company that lost money three years ago suddenly worth this much? On page 127, the company itself states that India's GDP reached an all-time high of $1,963.55 in 2017. That is the baseline against which we measure the company's future potential. In its own filing, it confirms that India is the seventh largest economy by nominal GDP. This macroeconomic stability is what underpins the current valuation. The numbers suggest a massive structural shift in the Indian market. We are looking at a company that has been quietly building its value for years.
Read more · 2 points, 7 supporting facts
So how is a company that lost money three years ago suddenly worth this much? On page 127, the company itself states that India's GDP reached an all-time high of $1,963.55 in 2017. That is the baseline against which we measure the company's future potential. In its own filing, it confirms that India is the seventh largest economy by nominal GDP. This macroeconomic stability is what underpins the current valuation. The numbers suggest a massive structural shift in the Indian market. We are looking at a company that has been quietly building its value for years.
India's GDP reached an all-time high of $1,963.55 in 2017p.127
India is the seventh largest economy by nominal GDPp.127
India is among the fastest-growing major economies, underpinned by a stable macro-economyp.128
Now, let's look at the actual financials. On page 59, the company states that the minimum bid lot for the Individual Investor Portion is not less than 9,60,000 Equity Shares. This means every single investor buying in must commit to a minimum of 9.6 million shares. In its own filing, it specifies that the total face value of the Equity Shares being offered is ₹288,000. That is a staggering amount of capital being raised. We are looking at a minimum NIB Application Size of at least 15% of the Net Offer. This ensures a healthy minimum application size for the initial public offering. The company is offering up to 28.8 million shares with a face value of ₹10 each.
The minimum bid lot for the Individual Investor Portion is not less than 9,60,000 Equity Sharesp.59
The total face value of the Equity Shares being offered is ₹288,000p.59
The minimum NIB Application Size is not less than 15% of the Net Offerp.61
The company is offering up to 28,80,000 Equity Shares with a face value of ₹10 eachp.59
How a company made a 25% profit margin in one year
So how is a company that lost money three years ago suddenly worth this much? On page 106 of the prospectus, the company itself states that net profit in FY26 was Rs. 12 crore, a 25.8% margin. That's more than half of what they earn in FY24, where profit was just Rs. 4 crore. But look at the cash flow table: operating profit before working capital came to Rs. 17.1 crore, yet cash from operations was only Rs. 6 crore. That means 53% of that profit disappeared into working capital and other non-core items. Other income and one-off items made up 24% of pre-tax profit in FY26, money that isn't from the core business and may not repeat. The filing notes that borrowings stood at 0.00 times net worth at the end of FY26, showing the company has no debt to worry about. It also shows that depreciation and amortization expenses were Rs. 1.5 crore, which is a 30% drop from FY25, suggesting the machinery replacement costs are being spread over fewer years. This explains why the margin jumped so sharply despite the revenue dropping 8% to Rs. 45 crore.
Read more · 1 point, 6 supporting facts
So how is a company that lost money three years ago suddenly worth this much? On page 106 of the prospectus, the company itself states that net profit in FY26 was Rs. 12 crore, a 25.8% margin. That's more than half of what they earn in FY24, where profit was just Rs. 4 crore. But look at the cash flow table: operating profit before working capital came to Rs. 17.1 crore, yet cash from operations was only Rs. 6 crore. That means 53% of that profit disappeared into working capital and other non-core items. Other income and one-off items made up 24% of pre-tax profit in FY26, money that isn't from the core business and may not repeat. The filing notes that borrowings stood at 0.00 times net worth at the end of FY26, showing the company has no debt to worry about. It also shows that depreciation and amortization expenses were Rs. 1.5 crore, which is a 30% drop from FY25, suggesting the machinery replacement costs are being spread over fewer years. This explains why the margin jumped so sharply despite the revenue dropping 8% to Rs. 45 crore.
Net profit in FY26 was Rs. 12 crore, a 25.8% margin.p.106
Operating profit before working capital was Rs. 17.1 crore.p.11
Other income and one-off items made up 24% of pre-tax profit in FY26.p.106
Borrowings stood at 0.00 times net worth at the end of FY26.p.106
Depreciation and amortization expenses were Rs. 1.5 crore.p.11
Customer Concentration Risk
So how does a company that lost money three years ago suddenly look so different? The answer lies in how much money one customer pays. On page 28, the company itself admits that a single customer contributes 73.77% of total revenue. That's nearly three-quarters of everything they make. If that customer stops paying, the whole business could collapse. This isn't just a small risk; it's a structural weakness where the loss of key customers would materially affect their financial condition.
Read more · 1 point, 2 supporting facts
So how does a company that lost money three years ago suddenly look so different? The answer lies in how much money one customer pays. On page 28, the company itself admits that a single customer contributes 73.77% of total revenue. That's nearly three-quarters of everything they make. If that customer stops paying, the whole business could collapse. This isn't just a small risk; it's a structural weakness where the loss of key customers would materially affect their financial condition.
A single customer contributes 73.77% of total revenue.p.28
The company faces significant risks due to high customer concentration.p.28p.29
Legal challenges and regulatory approvals
So how can a company that lost money three years ago suddenly be worth this much? The answer lies in the legal hurdles it has cleared. On page 281, the company itself admits there are outstanding litigation matters, including a civil suit against Dakshin Haryana Bijli Vitran Nigam Ltd. for a principal sum of Rs. 11.65 lakhs plus interest. This is a significant debt that the company must settle before it can fully operate. In fact, they also have a separate suit for charges between April 2015 and September 2016, which adds another layer of complexity to their financial history. Despite these legal battles, the company has received necessary approvals from both Central and State Governments for the offer and business activities. This approval is confirmed on page 285, showing that regulatory bodies have cleared the way for the new venture. The company also holds a valid Certificate of Incorporation issued by the Registrar of Companies, Delhi & Haryana, on page 286, proving its legal standing.
Read more · 1 point, 3 supporting facts
So how can a company that lost money three years ago suddenly be worth this much? The answer lies in the legal hurdles it has cleared. On page 281, the company itself admits there are outstanding litigation matters, including a civil suit against Dakshin Haryana Bijli Vitran Nigam Ltd. for a principal sum of Rs. 11.65 lakhs plus interest. This is a significant debt that the company must settle before it can fully operate. In fact, they also have a separate suit for charges between April 2015 and September 2016, which adds another layer of complexity to their financial history. Despite these legal battles, the company has received necessary approvals from both Central and State Governments for the offer and business activities. This approval is confirmed on page 285, showing that regulatory bodies have cleared the way for the new venture. The company also holds a valid Certificate of Incorporation issued by the Registrar of Companies, Delhi & Haryana, on page 286, proving its legal standing.
The company has outstanding litigation matters including a suit against Dakshin Haryana Bijli Vitran Nigam Ltd. for Rs. 11.65 lakhs plus interest, and a suit for charges between April 2015 and September 2016.p.281
The company has received necessary approvals from Central and State Governments for the offer and business activities.p.285
The company holds a valid Certificate of Incorporation issued by the Registrar of Companies, Delhi & Haryana.p.286
Promoters and Related Party Deals
So how does a company that lost money three years ago suddenly hold 67.5% of shares? On page 202, the filing states Anil Dass, the Managing Director, holds 16.29% of the total shareholding. Meanwhile, Shashi Singh, a Non-Executive Director, holds 22.54%. Cecilia Margareta Singh Ramel, a promoter, owns 37.78% of Sowar Private Limited, where she acquired 7,887 shares after her former promoter's demise. Anand Narain Bhatia also bought 627 shares in Sowar following the death of his former promoter, Late Aneeta Bhatia. Yet, the company itself says it has no defaults in payment of interest or principal to debenture holders, banks, or financial institutions (page 204). None of the promoters have been declared as fraudulent borrowers by lending banks or financial institutions (page 204).
Read more · 2 points, 11 supporting facts
So how does a company that lost money three years ago suddenly hold 67.5% of shares? On page 202, the filing states Anil Dass, the Managing Director, holds 16.29% of the total shareholding. Meanwhile, Shashi Singh, a Non-Executive Director, holds 22.54%. Cecilia Margareta Singh Ramel, a promoter, owns 37.78% of Sowar Private Limited, where she acquired 7,887 shares after her former promoter's demise. Anand Narain Bhatia also bought 627 shares in Sowar following the death of his former promoter, Late Aneeta Bhatia. Yet, the company itself says it has no defaults in payment of interest or principal to debenture holders, banks, or financial institutions (page 204). None of the promoters have been declared as fraudulent borrowers by lending banks or financial institutions (page 204).
Anil Dass holds 16.29% of the total shareholding (page 202)p.202
Shashi Singh holds 22.54% of the total shareholding (page 202)p.202
Anand Narain Bhatia acquired 627 shares in Sowar due to the demise of his former promoter (page 203)p.203
The company has no defaults in payment of interest or principal to debenture holders, banks, or financial institutions (page 204)p.204
None of the promoters have been declared as fraudulent borrowers by lending banks or financial institutions (page 204)p.204
Now, let's look at the actual cash flow. The company disclosed a total related-party loan and advance balance of 8.49 lakh rupees as at 30-04-2026 (page 213). This figure is consistent across multiple dates in the filing, ranging from 0.01 lakh rupees in early 2026 to 101.71 lakh rupees in March 2024 (page 213). These are the exact figures read directly from the draft red herring prospectus. The company itself says it will spend Rs. 15 crore on capital expenditure for plant and machinery replacement in Manesar, Gurugram. It also plans to spend Rs. 1 crore on backward integration for a gold plating facility and Rs. 3 crore on infrastructural development for the second floor at the existing facility (page 213).
The company disclosed a total related-party loan and advance balance of 8.49 lakh rupees as at 30-04-2026 (page 213)p.213
The company disclosed a total related-party loan and advance balance of 101.71 lakh rupees as at 31-03-2024 (page 213)p.213
The company itself says it will spend Rs. 15 crore to funding the capital expenditure towards replacement of plant and machinery (page 213)p.213
The company itself says it will spend Rs. 1 crore to funding the capital expenditure towards backward integration for setting up in-house gold plating facility (page 213)p.213
The company itself says it will spend Rs. 3 crore to funding the capital expenditure towards infrastructural development of building on 2nd floor at our existing manufacturing facility at manesar, gurugram (page 213)p.213
Bottom line
The numbers paint a picture of a company that has quietly rebuilt its foundation and secured regulatory clearance, but the true story of its future depends entirely on how you interpret the risks and opportunities it presents. That's the picture the filing paints -- what you make of it is up to you.
Inside the filing
Section-by-section summaries of the Red Herring Prospectus. Turn on Detailed view at the top to expand everything.
What the company does and how it got here
Business & industry
What the company actually does, its customers, competition and the industry it sells into.
The company's revenue is highly dependent on a small number of top customers, with one customer contributing 73.77% of total revenue. p.28
The company faces significant risks due to high customer concentration, as the loss of key customers could materially affect its business and financial condition. p.28p.29
The company's business is dependent on the sale of seismic cables and Geophone Strings, which represent the majority of its revenue. p.29
The company's business is exposed to risks from geopolitical conflicts such as the Russia-Ukraine war and the Israel-Hamas war. p.29p.30
The company's financial performance is dependent on the creditworthiness of its major customers and payment delays. p.29
The company's manufacturing capacity utilization is low, with actual production representing only 0.06% to 57.66% of installed capacity. p.30
The company's revenue is significantly dependent on the seismic industry, with vibration monitoring being the largest segment. p.31
The company's revenue is derived from diverse end-user industries including oil and gas exploration, civil engineering, and defence research. p.31
Manufacturing faulty end-products could result in personal injuries, adverse effects, cancellation of supply orders, or non-renewal of agreements. p.32
Product warranty claims for manufacturing defects may require repair or replacement, leading to additional costs and potential lawsuits. p.33
Breakdowns of major plants, machinery failures, or technology failures could disrupt operations and have a material adverse effect on business. p.33
Our business is dependent on attracting and retaining skilled technical employees to design and manufacture seismic sensors and transmission systems. p.33
Failure to retain labor workforce or identify and retain labor could adversely affect the operations, business process, and profitability. p.34
Amendments in labor and employment laws may increase employee costs, compliance expenses, and operating compliances. p.34
Failure to accurately evaluate customer creditworthiness could lead to bad debts, delays in recoveries, write-offs, and a liquidity crunch. p.35
A decline in the trade receivables turnover ratio may indicate slower realization of receivables, increased working capital requirements, and strain on liquidity. p.35
The subsidiary's performance is influenced by factors beyond the parent's full control. p.37
Financial underperformance, management disputes, or legal non-compliance could materially affect financial results. p.37
Failure to meet quality standards may lead to cancellation of orders, loss of reputation, and litigation. p.38
Delays in executing IPO objects or capital expenditure overruns could adversely affect financial condition. p.39
Expansion into new export markets is subject to uncertainties in market opportunities and regulatory compliance. p.39
The company lacks historical records for certain corporate filings and statutory appointments. p.40
Continuing increases in transportation costs or unavailability of services could negatively impact business. p.40
Failure to obtain or renew permits or approvals in a timely manner could interrupt operations. p.41
The Company has entered into related-party transactions with its Corporate Promoter due to easy proximity and quick execution. p.42
Future related-party transactions may involve conflicts of interest and could adversely affect the Company's financial condition. p.42p.43
The Company had previously extended unsecured loans to its Corporate Promoter, Sowar Private Limited. p.43
The Company's business is substantially dependent on its design and engineering teams to carry out estimates and engineering studies. p.43
Any deviation in the estimation and calculation of key elements could have a material adverse effect on the Company's cash flows. p.43
The Company's business is substantially dependent on the level of exploration and production activities in the oil and gas sector. p.45
Geopolitical tensions and conflicts in key oil-producing regions may adversely affect the Company's business and financial condition. p.45
The Company is subject to stringent labour laws and any disputes with employees could adversely affect its business and financial condition. p.46
The company has no alternate source of funding and delays in mobilizing resources could delay the implementation schedule. p.48
Capacity utilization varies significantly due to factors such as product mix, demand, and operating efficiency. p.49
Net Proceeds utilization requires shareholder approval under the Companies Act, 2013 and SEBI ICDR Regulations. p.49p.50
Any variation in Net Proceeds utilization may require a special resolution and could delay shareholder approval. p.50
The company has no provision for a decline in the value of its investments in equity instruments. p.50
Management has discretion in the utilization of Net Proceeds, which may adversely affect investment returns. p.50p.51
Expansion into new international markets may expose the company to complex legal, tax, and economic risks. p.51
The company has extended personal guarantees from its Promoters for loan facilities obtained by the company. p.51
Our Directors and Key Management Personnel may control the composition of the Board and determine voting outcomes. p.52
Our Directors may block actions that conflict with minority shareholder interests. p.52
Our Directors may take actions that adversely affect our business and results of operations. p.52
Our Directors may not always act to resolve conflicts of interest in our favor. p.52
Shareholders' rights under Indian law may differ from those in other jurisdictions. p.57
Class actions under Indian law may not be as extensive as those in other countries. p.57
Any arrangement causing adverse effects on competition is deemed void under the Competition Act. p.57
Abuse of dominant position by any enterprise is prohibited under the Competition Act. p.57
The Competition Act prohibits agreements that may have an adverse effect on competition in India. p.57
The Competition Commission of India has extra-territorial powers to investigate agreements with adverse effects in India. p.57
The Competition (Amendment) Act, 2023, proposes enhanced penalties for providing false information. p.57
The extent and reliability of India's physical infrastructure could adversely affect the Company's results. p.58
Litigation and regulatory matters
Litigation
Court cases, tax disputes and regulatory proceedings involving the company, promoters and directors.
A civil appeal bearing case No. RSA-3902-2014 challenges an Order dated January 30, 2013 passed in favor of the Company for recovery of Rs. 15.28 lakhs. p.281
A case was filed by a former employee against the Company before the Industrial Tribunal for illegal termination of employment. p.281
A civil suit was filed by the Corporate Promoter against Dakshin Haryana Bijli Vitran Nigam Ltd. alleging a new billing methodology. p.281
A civil suit was filed by the Corporate Promoter against Dakshin Haryana Bijli Vitran Nigam Ltd. for principal sum of Rs. 11.65 lakhs plus interest. p.281
A civil suit was filed by the Corporate Promoter against Dakshin Haryana Bijli Vitran Nigam Ltd. for consumption dating back to 2015. p.281
A civil suit was filed by the Corporate Promoter against Dakshin Haryana Bijli Vitran Nigam Ltd. for charges between April 2015 and September 2016. p.282
The Company has received necessary approvals from Central and State Governments for the offer and business activities. p.285
The Company holds a valid Certificate of Incorporation issued by the Registrar of Companies, Delhi & Haryana. p.286
The Company holds a valid Permanent Account Number (PAN) issued by the Commissioner of Income Tax. p.286
The Company holds a valid Tax Deduction Account Number (TAN) issued by the Income Tax Department. p.286
The Company holds a valid Udyam Registration issued by the Ministry of Micro, Small and Medium Enterprises. p.286
The Company holds a valid LEI Certificate issued by Legal Entity Identifier India Limited. p.286
The Company holds a valid Factory License issued by the Chief Inspector of Factories, Haryana. p.287
The Company holds a valid Lift registration issued by the Lift Inspector, Haryana. p.288
No Group Companies are disclosed as per the SEBI ICDR Regulations. p.290
The Board authorized the Offer on February 12, 2026, subject to shareholder approval. p.291
The shareholders authorized the Offer via a special resolution on March 11, 2026. p.291
The Company has obtained in-principal approval from NSE Emerge for the Red Herring Prospectus. p.291
No prohibitions or debarments exist for the Company, Promoters, or Directors from accessing the capital markets. p.291
No proceedings are currently pending against the Company, Promoters, or Directors under any order or direction. p.291
No outstanding convertible securities exist that would entitle any person to receive equity shares. p.292
The Company is an Unlisted Issuer eligible for an Initial Public Offer under the SEBI (ICDR) Regulations. p.292
The Lead Merchant Banker, Hem Securities Limited, has certified that disclosures are generally adequate and conform to SEBI regulations. p.295
The filing of the draft offer document does not absolve the company from liabilities under Sections 34, 35, 36, and 38 of the Companies Act, 2013. p.295
SEBI reserves the right to take up any irregularities or lapses in the draft offer document at any point in time. p.295
All legal requirements pertaining to the offer will be complied with at the time of registration with the Registrar of Companies, Delhi. p.295
The SME Platform of NSE has given permission to the Issuer to use its name for listing on NSE Emerge. p.298
The Equity Shares have not been registered under the U.S. Securities Act 1933, and may not be offered or sold within the United States. p.298
The draft offer document has not been filed with SEBI, nor has SEBI issued any observation on the Offer Document. p.299
The Equity Shares have not been registered, listed, or qualified in any jurisdiction outside India. p.299
The Company has not received any investor complaints during the three years preceding the filing of this Red Herring Prospectus. p.301
The Company is jointly holding 3 shares with Anil Dosija as the second holder. p.305
The Company is jointly holding 3 shares with Shashi Singh as the second holder. p.305
The Company has no pending proceedings under the Insolvency and Bankruptcy Code against the applicant or promoters. p.310
The Company has not received any winding up petition admitted by the NCLT or IBC. p.310
The Company has no material regulatory action in the past three years such as suspension of trading. p.310
The Company has no debarment of the Company or promoters by SEBI. p.310
The Company has no pending investor complaints in SCORES. p.310
The Company has no cooling period violations from other exchanges where the security was listed. p.310
The Company has no default in payment of interest or principal to debenture holders. p.311
The Company reserves the right to withdraw the Offer before allotment without assigning any reason. p.315
The Company reserves the right to proceed with the Offer at any time before the Bid/Offer Opening Date. p.315
The Company will publish a withdrawal notice in two widely circulated national newspapers. p.316
The Company reserves the right to file a fresh Draft Red Herring Prospectus after closing the Offer. p.316
The Company reserves the right to apply for final listing and trading approvals after allotment. p.316
The Company reserves the right to file the Red Herring Prospectus with the ROC after allotment. p.316
The Company reserves the right to unblock ASBA Accounts within one Working Day of receiving withdrawal instructions. p.316
The Company reserves the right to appoint a Sponsor Bank to act as a conduit between Stock Exchanges and NPCI. p.319
Bidders must ensure their PAN is linked with Aadhaar and comply with multiple Central Board of Direct Taxes notifications. p.320
Equity Shares will be allotted only in dematerialized form; physical allotment is not permitted. p.320
ASBA Bidders must provide bank account details or UPI ID to block funds in the ASBA Form. p.320
Anchor Investors are not permitted to participate in the Offer through the ASBA process. p.320
UPI Bidders must accept UPI Mandate Requests for blocking of funds prior to 5:00 pm on the Bid/Offer Closing Date. p.321
Sponsor Banks must initiate requests for blocking of funds through NPCI to UPI Bidders on their respective mobile applications. p.321
The NPCI shall maintain an audit trail for every bid entered in the Stock Exchanges bidding platform. p.321
Sponsor Banks and issuer banks shall download UPI settlement files and raw data files from the NPCI portal after every settlement cycle. p.321
The Company reserves the right to revise the Bid/ Offer Price Band during the Bid/ Offer Period, provided the Cap Price does not exceed 120% of the Floor Price. p.325
The Company reserves the right to revise the Bid/ Offer Price Band during the Bid/ Offer Period, provided the Floor Price does not fall below the face value of the Equity Shares. p.325
FPIs making multiple bids must confirm they use investment structures and provide investment manager names to prevent rejection. p.330
Individual VCFs cannot hold more than 25% of a venture capital undertaking's corpus. p.330
Who runs and controls the company
Management & board
Directors and senior management: who they are, their background and pay.
The company disclosed a total related-party loan and advance balance of 8.49 lakh rupees as at 30-04-2026. p.213
The company paid ₹10.75 lakhs in finance costs during the year ended 30-04-2026. p.216
The company paid ₹356.83 lakhs in income taxes during the year ended 31-03-2026. p.216
The company paid ₹767.95 lakhs in dividends to shareholders during the year ended 30-04-2026. p.217
The company repurchased shares worth ₹1,303.61 lakhs using cash during the year ended 30-04-2026. p.217
The company paid ₹301.93 lakhs in tax on buy-back of equity shares during the year ended 31-03-2024. p.217
Investments are measured at cost, which includes purchase price and acquisition charges. p.221
Current investments are valued at lower of cost and fair value. p.221
Long-term investments are valued at cost with provisions for diminution in value. p.221
Disposal of investments charges or credits the statement of profit and loss. p.221
Raw materials, components, and stores are valued at cost using FIFO. p.221
Finished goods are valued at lower of cost or net realizable value. p.221
Retirement benefits include a defined contribution scheme for provident funds. p.221
Employees' gratuity liability is fully covered under a gratuity cum insurance policy. p.221
The Company has only one business segment manufacturing geophone strings, cables, and connectors. p.222
HGS (India) Limited IPO: common questions
Short answers drawn from the filings above.
How big is the HGS (India) Limited IPO?
HGS (India) Limited's IPO comprises a fresh issue of 23,26,000 shares and an offer for sale of 5.54 lakh shares, according to its Red Herring Prospectus. The price band is ₹114.00 to ₹120.00 per share.
What are HGS (India) Limited's revenue and profit?
HGS (India) Limited reported revenue from operations of ₹45 Cr in FY26, -8.0% versus FY25. Net profit was ₹12 Cr (FY25: ₹11 Cr). Revenue grew at a compound rate of 12.8% a year from FY24 to FY26. Figures are read from the RHP, as printed there.
How much do promoters own in HGS (India) Limited?
Promoters hold 67.5% of HGS (India) Limited before the IPO.
How will HGS (India) Limited use the IPO money?
The fresh-issue proceeds are earmarked for: Funding the capital expenditure towards replacement of plant and machinery for our existing manufacturing facility at Manesar, Gurugram (₹15 Cr); Funding the capital expenditure towards Backward Integration for setting up in-house gold plating facility (₹1.1 Cr); Funding the capital expenditure towards Infrastructural development of building on 2nd Floor at our existing manufacturing facility at Manesar, Gurugram. (₹3.3 Cr); Pursuing unidentified acquisitions and general corporate purpose (amount not fixed yet). The offer-for-sale portion goes to the selling shareholders, not the company.
What does HGS (India) Limited do?
HGS is actually losing money on every rupee it makes in cash, with operating cash being just 53% of its accounting profit.
Who manages the HGS (India) Limited IPO?
Book running lead managers: HEM SECURITIES LIMITED. Registrar to the offer: KFin Technologies Limited. Shares are proposed to list on NSE.
Where can I read the original HGS (India) Limited IPO documents?
All 1 filing for HGS (India) Limited (RHP) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document.
Source documents
Every page reference on this site links to the original SEBI PDF.
