Geophones and seismic cables manufacturer HGS India made a successful stock market debut on November 6, listing at a premium of around 34 percent over its IPO price on the NSE Emerge platform. The shares listed at ₹160 per share, compared with the IPO issue price of ₹120, translating into a listing gain of 33.33 percent. This performance was broadly in line with grey market expectations, as the company had been commanding a grey market premium of around ₹40 per share ahead of its debut, according to InvestorGain. However, investors should note that the grey market is unofficial and unregulated, and GMP only indicates investor sentiment and does not guarantee actual listing price or gains.
The IPO was open for subscription from October 30 to November 3 with a fixed issue price of ₹120 per share within a price band of ₹114-120 per share. As reported by InvestorGain, the company raised ₹34.56 crore through the issue, comprising a fresh issue of 23.26 lakh equity shares worth ₹27.91 crore and an offer for sale of 5.54 lakh shares worth ₹6.65 crore by existing shareholders, including promoters. The issue witnessed particularly strong participation from non-institutional investors, whose portion was subscribed 425.02 times, while retail investors received bids for 235.72 times their allotted quota. Investors placed bids for approximately 47.77 crore equity shares against the net offer of around 20.66 lakh shares during the subscription period.
According to the company's disclosure, HGS India plans to utilize ₹15.05 crore from the net proceeds of the fresh issue towards replacing plant and machinery at its existing manufacturing facility in Manesar, Gurugram. Another ₹1.05 crore will be allocated towards setting up an in-house gold plating facility as part of its backward integration plans. The company will also spend ₹3.26 crore on infrastructure development on the third floor of its existing manufacturing facility, with the remaining proceeds allocated for unidentified acquisitions and general corporate purposes.
New Delhi-based HGS India, established in 1986, manufactures geophones, geophone strings, seismic cables, geophysical connectors and accessories used in seismic data collection. The company operates a manufacturing facility in Manesar, Haryana, and has around four decades of manufacturing experience. As reported by InvestorGain, the company's products are used across several industries including oil and gas exploration, defence research, mineral exploration, vibration monitoring, geophysical seabed surveys and earthquake seismology. The company also caters to academic and applied research institutions.
The IPO allotment was finalised on November 4, while refunds and credit of shares to demat accounts were scheduled for November 5. According to the subscription figures, HEM Securities acted as the book-running lead manager for the HGS India IPO, with the shares set to list on the NSE Emerge platform on November 6. The listing was scheduled for November 6 on the NSE Emerge platform, with the shares set to list on the exchange during regular trading hours.
