# HGS (India) Limited: IPO analysis

> 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.

- Page: https://ipo.innerkore.com/in/company/U74899DL1986PLC023341/hgs-india-limited/
- CIN: U74899DL1986PLC023341
- Last updated: 29 Oct 2026

## Key facts

- **Company:** HGS (India) Limited
- **CIN:** U74899DL1986PLC023341
- **Filing stage:** RHP
- **Latest SEBI filing:** 29 Oct 2026
- **Offer for sale:** 5,54,000 shares
- **Price band:** ₹114.00 to ₹120.00 per share
- **Bidding opens:** 30 Oct 2026
- **Bidding closes:** 3 Nov 2026
- **Listing on:** NSE
- **Revenue FY26:** ₹45 Cr
- **Revenue growth:** -8.0%
- **Net profit FY26:** ₹12 Cr
- **Revenue CAGR FY24 to FY26:** 12.8%
- **Promoter holding (pre-IPO):** 67.5%
- **Lead managers:** HEM SECURITIES LIMITED
- **Registrar:** KFin Technologies Limited

## Key signals (read from the filing; not investment advice)

- **Valuation** (looks fine): 11.2x P/E. From NSE's price band, on FY26 profit; 0.9x book value.
- **Growth** (look closer): 12.8% a year. Sales FY24 to FY26; latest year -8%.
- **Profitability** (looks fine): 25.8% net margin. FY26.
- **Debt** (looks fine): No borrowings. Nothing borrowed at the end of FY26.
- **Profit into cash** (look closer): 53% of profit. Operations brought in ₹6.1 crore against ₹11.6 crore of profit in FY26.
- **One-off income** (look closer): 24% of profit. Other and one-off income is 24% of pre-tax profit; management describes 7 one-off items.
- **Where the money goes** (looks fine): 19% for sale. 81% is new shares issued by the company. (converted using NSE's price band)

## Financial snapshot (₹ crore unless stated; consolidated)

| | FY24 | FY25 | FY26 | 1M Apr-26 |
|---|---:|---:|---:|---:|
| Sales | 35 | 49 | 45 | 3.1 |
| Sales growth | – | 38.3% | -8.0% | – |
| Net profit | 4.0 | 11 | 12 | 1.1 |
| Net margin | 11.3% | 21.4% | 25.8% | 35.8% |
| Net worth | 152 | – | 148 | 149 |
| Borrowings | 0.00 | – | 0.00 | 0.00 |
| Return on equity | 2.6% | – | 7.9% | – |

## Non-recurring items (as described by management)

- The company reported a net gain/loss on sale of investments of ₹0.76 lakhs during the period ended April 30, 2026. (p.272)
- 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. (p.272)
- Net gain/loss on sale of investments of ₹0.76 lakhs is included in other income. (p.272)
- Provisions/Credit balances/Liabilities written back of ₹0.03 lakhs is included in other income. (p.272)
- Net gain/loss on sale of investments reduced by 79.74% from ₹152.25 lakhs in FY24-25 to ₹30.85 lakhs in FY25-26. (p.274)
- Provisions/Credit balances/Liabilities written back reduced by 2.68% from ₹4.47 lakhs in FY24-25 to ₹4.35 lakhs in FY25-26. (p.274)
- Provision written back for Warranty expenses reduced by 25.87% from ₹28.95 lakhs in FY24-25 to ₹21.46 lakhs in FY25-26. (p.274)

## Use of proceeds (fresh issue)

- Funding the capital expenditure towards replacement of plant and machinery for our existing manufacturing facility at Manesar, Gurugram: ₹15 crore
- Funding the capital expenditure towards Backward Integration for setting up in-house gold plating facility: ₹1.1 crore
- Funding the capital expenditure towards Infrastructural development of building on 2nd Floor at our existing manufacturing facility at Manesar, Gurugram.: ₹3.3 crore
- Pursuing unidentified acquisitions and general corporate purpose#: amount not fixed yet

## Common questions

### 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

- [HGS (India) Limited](https://nsearchives.nseindia.com/content/ipo/RHP_HGSINDIALT.zip) (Red Herring Prospectus, filed 29 Oct 2026)

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Source: InnerKore IPO (https://ipo.innerkore.com/). Read from public SEBI filings by automated extraction; check the linked documents. Not investment advice.