Harikanta Overseas Ltd IPO

Textiles

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Price Band

₹86 – ₹91

Lot Size

1200

Minimum Bid Quantity

2400

Minimum Investment

₹218400

Issue Size

₹25.63Cr

Opens

2026-05-20

Closes

2026-05-27

Listing

02-06-2026

Subscription Status

Qualified Institutional Buyers

21.33 x

Non-Institutional Investor

0.73 x

Retail Individual Investor

0.65 x

Total

1.11 x

IPO Details

Issue Type

FP

Face Value

₹10

Tick Size

1

ISIN

INE1UYW01010

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

Harikanta Overseas Limited is a manufacturer of synthetic textile fabrics. The company’s product portfolio includes Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen, and natural fibre fabrics. Its fabrics are primarily used for women’s wear, such as sarees, dress materials, and kurtas, while also catering to fabrics for men’s kurtas. The company supplies products to both domestic and international markets, with exports to countries, including Cambodia, Bahrain, Singapore, and Thailand. Harikanta Overseas operates a manufacturing facility in Surat, Gujarat, spread across approximately 953.93 square metres at Sai Ram Industrial Estate-2, Bamroli. The company also undertakes finishing, packaging, and quality checks for products sourced through third-party job workers when required. In addition, its wholly owned subsidiary, Harikanta Weaving Private Limited, supports manufacturing operations and job work with rapier looms and related machinery.

Pros

  • • Harikanta Overseas Limited derives a significant portion of its revenue from exports. In FY25, export sales and merchant exports together contributed over 64% of its operating revenue. The company exports products such as Ikat fabrics to countries including Cambodia, Thailand, Bahrain, and Singapore, which helps diversify its market presence.
  • • The company operates a manufacturing facility in Surat, Gujarat, a major synthetic textile manufacturing hub. This location provides access to raw material suppliers, textile infrastructure, logistics connectivity, and a skilled workforce involved in textile production.
  • • Harikanta Overseas manufactures a diversified range of textile fabrics, including Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen, and natural fibre fabrics. The company has also expanded its product portfolio after acquiring machinery from associate entities in September 2024 and has started manufacturing additional fabric categories.

Cons

  • • The company is significantly dependent on yarn and related raw materials such as air tex yarn, texturised poly yarn, and TPM poly yarn for its manufacturing operations. Any price fluctuations or non-availability of these raw materials due to supply-demand imbalances, changes in government policies, import duties, or foreign exchange movements can negatively impact the company’s margins and profitability.
  • • The company has a concentrated supplier base. The top 10 suppliers contributed Rs 13.42 crore (56.24%) of total purchases in FY25, Rs 5.54 crore (100%) in FY24, and Rs 9.49 crore (100%) in FY23. Any disruption in supplies from these key vendors can adversely affect the company’s production schedules, operations, and financial condition.
  • • The company recorded negative cash flows from operating activities amounting to Rs 0.43 crore in FY25. Cash generated from operating activities has steadily fallen from FY23 to FY25, meaning that sales on credit are increasing over the years. The company may need to access debt funding to run day-to-day operations, which, in turn, will increase finance costs and pinch the net profit.

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