🚫 Avoid
Upcoming
SME IPO
NSE SME Oil Exploration & Production
HGS (India) IPO
₹34.56 Cr · Fresh Issue · Oil Exploration & Production
Price Band
₹114
Lot: 1200 shares (₹136,800)
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹34.56 Cr
Fresh Issue
Market Cap
₹130.30 Cr
At upper band
P/E Ratio
8.8x
Listing Date
6th Nov 2026
BSE & NSE
IPO Timeline
✓
Opens
30th Oct 2026
✓
Closes
3 Nov 2026
📋
Allotment
4 Nov 2026
₹
Refund
5 Nov 2026
📈
Listing
6th Nov 2026
IPO India Hub: Strong Avoid
Conviction
2/10
The company faces a severe operational crisis with revenue collapsing 73.4% over two years and PAT declining 67.5%, despite a superficially attractive 8.8x P/E. The business model has deteriorated sharply—FY0 revenue of ₹3.8 Cr against ₹53.5 Cr in FY-2 signals fundamental distress, not valuation opportunity.
Our Analysis — Key Points
⚠ Risk
Catastrophic revenue and profit collapse
Revenue fell from ₹53.5 Cr (FY-2) to ₹3.8 Cr (FY0), a 93% decline in two years. Net profit contracted from ₹11.6 Cr to ₹1.1 Cr over the same period. This is not cyclical weakness but structural business failure.
⚠ Risk
Negative revenue CAGR signals terminal decline
The 2-year revenue CAGR of -73.4% and PAT CAGR of -67.5% indicate the company is shrinking, not growing. For an SME IPO, this pattern typically precedes further deterioration, not recovery.
⚠ Risk
Oil & gas sector exposure and capex uncertainty
The company operates in Oil Exploration & Production, a cyclical, capital-intensive sector. Use of proceeds includes ₹15.05 Cr for plant replacement and ₹1.05 Cr for backward integration, but with collapsing revenues, execution risk on these capex projects is acute.
✓ Strength
High net profit margin and EBITDA
NPM of 29.3% and EBITDA margin of 37.4% show the company retains pricing power and operational efficiency on its remaining business. ROCE of 17.13% is respectable for the sector.
₹ Valuation
Valuation appears cheap but masks distress
At 8.8x P/E, the company trades at 0.38× the niche/unlisted sector midpoint of 23x, which would normally trigger a Subscribe verdict. However, this multiple is misleading: it reflects a company in freefall, not undervaluation. A low P/E on a shrinking profit base is a red flag, not a bargain.
👁 Watch
Monitor Q1 FY1 revenue and order pipeline
Investors must track whether the revenue collapse has stabilized or continued post-listing. Any further contraction or failure to secure new orders in oil & gas will confirm the business is terminal.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "HGS (India)" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹3.79 Cr
Net Profit
₹1.11 Cr
Industry
Oil Exploration & Production
Issue Type
Fresh Issue
Quick Actions
Frequently Asked Questions
Avoid. The company faces a severe operational crisis with revenue collapsing 73.4% over two years and PAT declining 67.5%, despite a superficially attractive 8.8x P/E. The business model has deteriorated sharply—FY0 revenue of ₹3.8 Cr against ₹53.5 Cr in FY-2 signals fundamental distress, not valuation opportunity.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
The minimum lot size is 1200 shares. At the upper band price of ₹114, the minimum investment per retail application is ₹136,800. You can apply for up to 13 lots (₹1,778,400) under the retail category (up to ₹2 lakh).
The IPO opens on 30th Oct 2026. It closes on 3 Nov 2026. Allotment is expected on 4 Nov 2026. Refunds initiate on 5 Nov 2026. Listing on BSE and NSE is on 6th Nov 2026.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 3 Nov 2026. The minimum investment is ₹136,800 for one lot (1200 shares). The company faces a severe operational crisis with revenue collapsing 73.4% over two years and PAT declining 67.5%, despite a superficially attractive 8.8x P/E. The business model has deteriorated sharply—FY0 revenue of ₹3.8 Cr against ₹53.5 Cr in FY-2 signals fundamental distress, not valuation opportunity.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 3 Nov 2026. The IPO is priced at a P/E of 8.8x. Market cap at issue price is ₹130.30 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 1200 shares at ₹114 each, costing ₹136,800 per application. The issue closes on 3 Nov 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'HGS (India)'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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