Harikanta Overseas Limited IPO: Opens in Two Days, Price Band, Issue Size and IPORupee Insight
Published on 18 May 2026, Monday
Harikanta Overseas Limited IPO: Opens in Two Days, Price Band, Issue Size and IPORupee Insight
Published on 18 May 2026, Monday
Harikanta Overseas Limited IPO is opening in two days. The IPO is scheduled to open on Wednesday, 20 May 2026 and close on Wednesday, 27 May 2026. This is an SME IPO proposed to be listed on BSE. The company is engaged in the textile fabric manufacturing business and operates from Surat, Gujarat.
Harikanta Overseas IPO Basic Details
| Particulars | Details |
|---|---|
| Company Name | Harikanta Overseas Limited |
| IPO Segment | SME |
| Status | Opening in Two Days |
| Open Date | Wed, 20 May 2026 |
| Close Date | Wed, 27 May 2026 |
| Lot Size | 1200 Shares |
| Price Band | Rs. 86 - Rs. 91 |
| Listing | BSE |
| Fresh Issue | Rs. 24.30 Cr |
| OFS | Nil |
| Total IPO Size | Rs. 24.30 Cr |
| QIB | 2.13% |
| Retail | 48.94% |
| Total HNI | 48.93% |
| BRLM | Interactive Financial Services Limited |
| Registrar | Bigshare Services Private Limited |
| Promoters | Hardik Gotawala, Abhishek Gotawala and Nilesh Gotawala |
IPO Rupee Pre-Opening Announcement
Harikanta Overseas Limited IPO is opening in two days. The SME IPO has a price band of Rs. 86 to Rs. 91 per share and a lot size of 1200 shares. The total IPO size is Rs. 24.30 Cr, entirely through a fresh issue. There is no OFS.
The company is raising funds through a fresh issue, which means IPO proceeds will go to the company and not to selling shareholders. The issue comprises 26,70,000 equity shares of face value Rs. 10 each. Out of this, 1,34,400 equity shares are reserved for the market maker and the net issue to the public is 25,35,600 equity shares. The issue will constitute 27.06% of the post-issue paid-up equity share capital.
One-Minute IPO Summary
Harikanta Overseas Limited is a Surat-based textile fabric manufacturer. The company manufactures fabrics used in women’s wear and men’s wear categories, including saree fabrics, dress material fabrics, kurta fabrics, polyester garment fabrics, Ikat fabrics, dhupion fabrics, poly linen and natural fibre fabrics.
The IPO is a pure fresh issue, which is a positive point because the company will receive the IPO funds. However, investors should also study key risks such as working capital requirement, customer concentration, supplier concentration, related party transactions, machinery capex risk, promoter group overlap, leased factory premises and SME IPO liquidity risk.
Business Overview
Harikanta Overseas Limited is engaged in manufacturing textile fabrics. The company operates in the textile value chain where yarn and related raw materials are converted into fabric products.
Products and Fabric Categories
- Sarees
- Dress materials
- Kurtas
- Women’s wear fabrics
- Men’s kurta fabrics
- Ikat fabrics
- Polyester garment fabrics
- Dhupion fabrics
- Poly linen fabrics
- Natural fibre fabrics
Market Presence
The company serves domestic customers and exports products to markets such as Singapore, Thailand, Bahrain and Cambodia. Export exposure may provide growth opportunities but also brings foreign currency and international market-related risks.
Objects of the Issue
| Object | IPORupee Explanation |
|---|---|
| Capital expenditure for purchase of equipment/machineries | To increase manufacturing capacity and support future growth. |
| Working capital requirement | To fund inventory, receivables and day-to-day operations. |
| General corporate purposes | For permitted corporate use. |
| Issue expenses | IPO-related expenses. |
The company proposes to use Rs. 932.50 lakh towards purchase of capital equipment, including 20 new rapier looms, 10 high-speed air-jet looms and 8 high-speed shuttleless rapier looms.
For FY 2026, the company has projected a working capital gap of Rs. 850 lakh, of which Rs. 200 lakh is proposed to be funded from issue proceeds. For FY 2027, the projected working capital gap is Rs. 1,125 lakh, of which Rs. 475 lakh, including Rs. 200 lakh in FY 2026, is proposed to be funded from issue proceeds.
Financial Performance
| Particulars | Nov 30, 2025 | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue from Operations | Rs. 2,608.41 lakh | Rs. 3,517.30 lakh | Rs. 1,111.22 lakh | Rs. 1,490.27 lakh |
| Total Income | Rs. 2,628.20 lakh | Rs. 3,550.41 lakh | Rs. 1,127.10 lakh | Rs. 1,506.24 lakh |
| Profit Before Tax | Rs. 652.90 lakh | Rs. 620.62 lakh | Rs. 112.28 lakh | Rs. 34.17 lakh |
| Profit After Tax | Rs. 508.58 lakh | Rs. 446.80 lakh | Rs. 81.98 lakh | Rs. 25.25 lakh |
| EPS | Rs. 7.07 | Rs. 6.69 | Rs. 1.27 | Rs. 0.40 |
Management and Board of Directors
Harikanta Overseas Limited has a six-member Board of Directors. The Board consists of 3 Executive Directors and 3 Non-Executive Independent Directors. The executive directors are from the Gotawala promoter family, while the company has appointed independent directors for governance and listing-compliance requirements.
| Name | Designation | Age | Status | Other Directorship |
|---|---|---|---|---|
| Hardik Gotawala | Managing Director | 33 years | Executive Director | Harikanta Weaving Private Limited |
| Nilesh Gotawala | Whole-time Director | 51 years | Executive Director | Harikanta Weaving Private Limited |
| Abhishek Gotawala | Whole-time Director | 29 years | Executive Director | Harikanta Weaving Private Limited |
| Shreyansh Shah | Independent Director | 32 years | Non-Executive Director | Nil |
| Sefali Sanghvi | Independent Director | 31 years | Non-Executive Director | Nil |
| Harshal Agrawal | Independent Director | 39 years | Non-Executive Director | Nil |
The RHP also mentions Swati Malu as the Company Secretary and Compliance Officer and Shafali Jain as the Chief Financial Officer.
Director Profile and IPORupee View
Hardik Gotawala
Hardik Gotawala is the Managing Director. He is 33 years old and has been associated with the company since incorporation. He was appointed as First Director on October 22, 2018 and is appointed for a period of five years from June 07, 2025 to May 31, 2030.
IPORupee View: He is the key operating face of the company. Execution by the managing director will be very important because IPO proceeds are proposed for machinery expansion and working capital.
Nilesh Gotawala
Nilesh Gotawala is a Whole-time Director. He is 51 years old and has also been associated with the company since incorporation. He was appointed as First Director on October 22, 2018 and is appointed for a five-year term from June 07, 2025 to May 31, 2030.
IPORupee View: His long association with the company and promoter-group involvement are positive from continuity perspective, but governance discipline after listing becomes important.
Abhishek Gotawala
Abhishek Gotawala is a Whole-time Director. He is 29 years old and has been associated with the company since incorporation as a First Director. He is appointed for a period of five years from June 07, 2025 to May 31, 2030.
IPORupee View: His involvement indicates promoter-family control and continuity. This can help in fast decision-making, but investors should also consider dependency on promoter group.
Independent Directors
Shreyansh Shah, Sefali Sanghvi and Harshal Agrawal are Independent Directors. Their presence supports governance structure, audit committee oversight and listing compliance.
IPORupee View: Independent director effectiveness will be important because Harikanta has related party transactions, leased premises and promoter-group overlap.
Family Relationship Between Directors
| Director | Related Director | Relationship |
|---|---|---|
| Hardik Gotawala | Nilesh Gotawala | Nephew - Uncle |
| Hardik Gotawala | Abhishek Gotawala | Cousins |
| Nilesh Gotawala | Abhishek Gotawala | Father - Son |
Management Confirmations
- None of the directors were directors of any company whose shares were suspended from trading by stock exchanges or under any SEBI/stock exchange/regulatory order in the last five years.
- None of the directors are on the RBI list of wilful defaulters.
- None of the directors were directors of any listed entity whose shares were delisted from any stock exchange.
- None of the directors were directors of any entity debarred from accessing capital markets by SEBI, stock exchanges or any other regulatory authority.
- None of the directors are fugitive economic offenders.
- There are no arrangements or understandings with major shareholders, customers, suppliers or others pursuant to which any director was selected as a director or member of senior management.
Green Flags
1. Pure fresh issue
There is no OFS. IPO proceeds will go to the company.
2. Strong profit growth
PAT increased from Rs. 25.25 lakh in FY 2023 to Rs. 446.80 lakh in FY 2025 and Rs. 508.58 lakh for the period ended November 30, 2025.
3. Manufacturing expansion
The company proposes to purchase new machinery and expand production capacity.
4. Textile manufacturing business
The company operates in textile fabric manufacturing, a sector with domestic and export demand.
5. Export presence
The company exports to countries such as Singapore, Thailand, Bahrain and Cambodia.
6. Promoter-led continuity
Hardik Gotawala, Nilesh Gotawala and Abhishek Gotawala have been associated with the company since incorporation.
7. Three independent directors
The company has appointed three non-executive independent directors, improving formal board structure.
8. Governance confirmations
The RHP includes confirmations on wilful default, SEBI debarment and fugitive economic offender status.
Red Flags
1. Machinery orders not yet placed
Delay in procurement or price changes can create time and cost overrun risk.
2. Raw material and supplier risk
Yarn and related raw materials form a major part of operating costs. Raw material prices can fluctuate.
3. Working capital intensive business
The business requires funds for inventory, receivables and production cycle.
4. Negative operating cash flow
Operating cash flow was negative for the period ended November 30, 2025 and FY 2025.
5. Customer concentration
Top 10 customers contributed 83.31% of total revenue for the period ended November 30, 2025 and 78.62% in FY 2025.
6. Supplier concentration
Top 10 suppliers contributed 58.88% of purchases up to November 30, 2025 and 56.24% in FY 2025.
7. Promoter group overlap
Potential conflict of interest may arise due to promoter/proprietary businesses operating in similar lines.
8. Leased factory and office
The registered office and factory premises are on lease from promoter/promoter group persons.
9. Promoter-family concentration
Key executive directors are related to each other, creating concentration of management control.
10. SME IPO liquidity risk
Post-listing liquidity may be lower and price movement may be sharper compared with mainboard IPOs.
Textile Fabric Business Risk Explainer
Textile fabric manufacturing is capital-intensive and working-capital-heavy. The company needs yarn, power, machinery, skilled labour and timely customer orders.
Raw material risk
Yarn and fabric input prices can fluctuate and affect margins.
Machinery risk
Breakdown, delay in procurement or lower utilisation can affect production.
Working capital risk
Cash can remain blocked in inventory and receivables.
Customer risk
High customer concentration can affect revenue stability.
Export risk
Foreign currency movement and export-market conditions can affect business.
Power and labour risk
Power cost, labour availability and production disruption can impact profitability.
SME IPO Risk Box
Harikanta Overseas Limited is an SME IPO. SME IPOs may offer growth opportunities, but they also carry higher risk.
Lower liquidity
SME shares may have lower trading volume after listing.
Higher volatility
SME stocks may move sharply due to lower float and limited participation.
Exit risk
Exit may not be easy if trading volume is low.
IPORupee Deep Insight
Harikanta Overseas Limited IPO is a textile manufacturing SME IPO with a pure fresh issue structure. This is positive because the IPO money will go into the company and can support capacity expansion and working capital.
The company’s profit growth is strong. PAT has increased sharply from FY 2023 to FY 2025, and the period ended November 2025 also shows strong profitability. The company is planning to expand capacity through new looms and machinery, which can support future revenue if demand remains strong.
Harikanta Overseas Limited is also a promoter-family-led SME textile company. The three executive directors — Hardik Gotawala, Nilesh Gotawala and Abhishek Gotawala — are related to each other and have been associated with the company since incorporation. This gives continuity and promoter commitment, but it also means control is concentrated within the promoter family.
The company has appointed three independent directors, which improves formal board structure. However, investors should judge governance not only by board composition but also by related party transactions, promoter group business overlap, leased premises from promoter/promoter group persons and machinery arrangements with promoter-linked entities.
Investors should not ignore the risks. The company has not yet placed orders for the proposed machinery. Its business is working-capital intensive. Operating cash flow was negative in FY 2025 and the period ended November 2025. Customer concentration is high, with top 10 customers contributing more than 80% of revenue in the latest period. There are also promoter group-related risks, related party transactions, leased premises and supplier concentration.
Final IPO Rupee View
Harikanta Overseas Limited IPO has positives such as pure fresh issue, strong PAT growth, textile manufacturing operations, export presence, capacity expansion plan and promoter-led continuity.
At the same time, key risks include negative operating cash flow, customer concentration, supplier concentration, working capital pressure, machinery procurement risk, promoter group overlap, related party transactions, leased premises, promoter-family control and SME liquidity risk.
Disclaimer
This article is for educational and informational purposes only. It is not investment advice, recommendation or a buy/sell call. IPO investments are subject to market risks. SME IPOs may have higher liquidity risk and price volatility. Investors should read the RHP carefully and consult their financial advisor before making any investment decision.