Which company's IPO is this?
This IPO is of Harikanta Overseas Ltd. The issue is scheduled to open on Wednesday, 20 May 2026 and closes on Wednesday, 27 May 2026.
After the IPO process is completed, the shares are proposed to be listed on BSE.
IPO Details
SMEAllotted
Open:Wed, 20 May 2026
Close:Wed, 27 May 2026
Lot Size:1200 Shares
Price Band:₹ 86 - ₹ 91
Listing:BSE
Fresh Issue:24.30 Cr
OFS:-
Total IPO Size:24.30 Cr
QIB : 2.13%
Retail : 48.94%
Total HNI : 48.93%
IPO Timeline
| Event | Date |
|---|---|
| Open Date | 20-05-2026 , Wednesday |
| Close Date | 27-05-2026 , Wednesday |
| Tentative Allotment | 29-05-2026 , Friday |
| Tentative Listing Date | 02-06-2026 , Tuesday |
| Retail Appl. Cut Off Time | 27-05-2026 , Wednesday 05:00 PM |
| Non Retail Appl. Cut Off Time | 27-05-2026 , Wednesday 04:00 PM |
| Initiation Of Refund | 01-06-2026 , Monday |
| Credit Of Share To Demat | 01-06-2026 , Monday |
Company Business Overview
IPORupee Business Overview
Harikanta Overseas Limited IPO
Detailed business overview, IPORupee insight and investor education based on the company’s Red Herring Prospectus.
BSE SME IPO
Textile Fabric Manufacturing
Fresh Issue Only
No Offer for Sale
Company
Harikanta Overseas Limited
Issue Type
100% Book Built Issue
Listing
BSE SME
Fresh Issue
26,70,000 equity shares
Issue Opens
May 20, 2026
Issue Closes
May 27, 2026
Company Overview
Harikanta Overseas Limited is a Surat-based textile fabric manufacturing company engaged in manufacturing synthetic textile fabrics. The company’s product portfolio includes Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen and natural fiber fabrics.
As per the RHP, Harikanta Overseas primarily caters to women’s wear, producing fabrics for sarees, dress materials and kurtas. It also offers fabrics for men’s kurtas. Although its fabrics have multiple end uses, the majority are used in the manufacturing of different types of sarees.
The company was originally incorporated as Harikanta Overseas Private Limited on October 22, 2018. It was converted into a public limited company and renamed Harikanta Overseas Limited on February 22, 2025.
| Particulars | Details |
|---|---|
| Registered Office | 28, Sairam Ind Estate, Bamroli, Surat-394107, Gujarat, India |
| Promoters | Hardik Gotawala, Abhishek Gotawala, Nilesh Gotawala |
| Registrar | Bigshare Services Private Limited |
| BRLM | Interactive Financial Services Limited |
| Designated Stock Exchange | BSE Limited |
What Does Harikanta Overseas Do?
Harikanta Overseas manufactures textile fabrics used mainly in Indian ethnic and garment wear. In simple words, the company procures yarn and other textile inputs, converts them into fabrics using weaving machinery, and sells those fabrics to customers in India and overseas.
- Manufacturing synthetic textile fabrics
- Manufacturing Ikat fabrics
- Manufacturing polyester garment fabrics
- Manufacturing saree fabrics
- Manufacturing dhupion fabrics
- Manufacturing poly linen fabrics
- Manufacturing natural fiber fabrics
- Producing fabrics for women’s wear, sarees, dress materials and kurtas
- Domestic and export sales
- Job work through subsidiary and other manufacturers
The company’s textile background comes from the promoter family’s long involvement in fabric manufacturing. The RHP states that the origins of the business can be traced back to the promoters’ grandfather, who operated manual power looms, and the business was later expanded by the next generations.
Products and Services
Ikat Fabrics
Ikat fabric is known for its distinctive pattern style and is used in women’s wear, sarees, dress materials and other garments.
Polyester Garment Fabrics
Polyester garment fabrics are synthetic fabrics used in apparel manufacturing. They are generally preferred for affordability, durability and easy maintenance.
Saree Fabrics
The company manufactures fabrics used in saree production. The RHP states that although the fabrics have multiple end uses, the majority are used in manufacturing different types of sarees.
Dhupion Fabrics
Dhupion fabric is used in ethnic wear, sarees and dress materials. Harikanta Overseas includes dhupion fabric in its product portfolio and export business.
Poly Linen and Natural Fiber Fabrics
Poly linen fabrics are used where linen-like texture and blended fabric properties are required. Natural fiber fabrics may help serve customers looking for comfort and breathable fabric options.
Job Work and Subsidiary Support
The company also uses job work arrangements. The RHP states that the company has given job work to its wholly-owned subsidiary Harikanta Weaving Private Limited, which is equipped with 16 rapier looms and supports domestic and overseas customer orders.
Manufacturing and Capacity
Harikanta Overseas operates in textile fabric manufacturing, where installed capacity, machine efficiency and capacity utilisation are important.
| Product | FY 2025 Installed Capacity | FY 2025 Utilised Capacity | FY 2025 Utilisation |
|---|---|---|---|
| Ikat Fabrics | 5,75,916 meters | 5,43,900 meters | 94.44% |
| Polyester Garment Fabrics | 54,718.40 meters | 52,415.60 meters | 95.79% |
| Sarees | 36,288 meters | 32,157 meters | 88.61% |
| Dhupion Fabric | 3,68,280 meters | 3,28,392 meters | 89.16% |
| Poly Linen | 72,576 meters | 66,528 meters | 91.66% |
| Natural Fiber | 93,480 meters | 88,640 meters | 94.82% |
| Total | 12,01,258.40 meters | 11,12,032.60 meters | 92.57% |
The registered office and factory premises are on lease basis and not owned by the company. The company also has additional factory premises at Diamond Industrial Park, Sachin, Surat, taken on lease for nine years from September 1, 2025.
Business Model
Harikanta Overseas follows a textile fabric manufacturing and export-oriented business model.
Step 1: Raw Material Procurement
The company procures yarn and related raw materials such as Air Tex Yarn, Texturized Poly Yarn, TPM Poly Yarn and other related materials.
Step 2: Weaving and Fabric Manufacturing
The company uses textile machinery to convert yarn into finished fabrics such as Ikat, saree fabrics, dhupion fabrics, polyester garment fabrics, poly linen and natural fiber fabrics.
Step 3: Job Work Support
When required, the company undertakes part of manufacturing through job work arrangements, including through its wholly-owned subsidiary Harikanta Weaving Private Limited.
Step 4: Domestic and Export Sales
The company sells fabrics in India and also exports to overseas markets such as Singapore, Thailand, Bahrain and Cambodia.
Step 5: Customer Orders and Repeat Business
The company operates mainly on purchase orders. It does not have long-term contracts with major customers.
Revenue Model
Harikanta Overseas earns revenue mainly from sale of textile fabrics. Revenue depends on domestic demand, export orders, yarn prices, fabric pricing, capacity utilisation, timely delivery, customer retention and working capital availability.
Simple model: Company procures yarn and textile inputs, manufactures fabrics, sells to domestic and export customers, and earns revenue from fabric sales.
Financial Highlights
| Particulars | November 30, 2025 | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Revenue from Operations | Rs. 2,608.41 lakhs | Rs. 3,517.30 lakhs | Rs. 1,111.22 lakhs | Rs. 1,490.27 lakhs |
| Total Income | Rs. 2,628.20 lakhs | Rs. 3,550.41 lakhs | Rs. 1,127.10 lakhs | Rs. 1,506.24 lakhs |
| Profit After Tax | Rs. 508.58 lakhs | Rs. 446.80 lakhs | Rs. 81.98 lakhs | Rs. 25.25 lakhs |
| Basic and Diluted EPS | Rs. 7.07 | Rs. 6.69 | Rs. 1.27 | Rs. 0.40 |
| Net Worth | Rs. 1,887.22 lakhs | Rs. 1,378.64 lakhs | Rs. 196.73 lakhs | Rs. 114.75 lakhs |
| Total Borrowings | Rs. 286.73 lakhs | Rs. 325.73 lakhs | Rs. 147.33 lakhs | Rs. 133.66 lakhs |
Revenue grew sharply from FY 2024 to FY 2025. PAT improved from Rs. 25.25 lakhs in FY 2023 to Rs. 446.80 lakhs in FY 2025 and Rs. 508.58 lakhs for the period ended November 30, 2025.
Key Performance Indicators
| KPI | November 30, 2025 | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| EBITDA | Rs. 735.23 lakhs | Rs. 671.68 lakhs | Rs. 124.24 lakhs | Rs. 48.65 lakhs |
| EBITDA Margin | 27.97% | 18.92% | 11.29% | 3.23% |
| Current Ratio | 1.97 | 1.94 | 0.77 | 0.54 |
| Debt Equity Ratio | 0.15 | 0.24 | 0.75 | 1.16 |
| Debt Service Coverage Ratio | 42.92 | 4.48 | 1.77 | 4.02 |
| Return on Capital Employed | 31.99% | 37.56% | 35.11% | 19.03% |
Cash Flow Position
| Period | Net Cash from Operating Activities |
|---|---|
| November 30, 2025 | Rs. (14.81) lakhs |
| FY 2025 | Rs. (43.17) lakhs |
| FY 2024 | Rs. 67.94 lakhs |
| FY 2023 | Rs. 193.99 lakhs |
The company reported negative operating cash flow for the period ended November 30, 2025 and FY 2025. Trade receivables increased significantly to Rs. 1,311.30 lakhs as at November 30, 2025 compared with Rs. 400.08 lakhs as at March 31, 2025.
Working Capital Position
| Period | Net Working Capital |
|---|---|
| FY 2023 | Rs. (76.45) lakhs |
| FY 2024 | Rs. (30.25) lakhs |
| FY 2025 | Rs. 694.52 lakhs |
| November 30, 2025 | Rs. 1,187.88 lakhs |
| FY 2027 projected | Rs. 1,125.00 lakhs |
The company proposes to fund Rs. 475.00 lakhs of working capital from IPO proceeds. It also plans capital expenditure of Rs. 932.50 lakhs for plant and machinery, including 20 new rapier looms, 10 high-speed air-jet looms and 8 high-speed shuttleless rapier looms.
Objects of the IPO
| Particulars | Details |
|---|---|
| Fresh Issue | 26,70,000 equity shares |
| Market Maker Reservation | 1,34,400 equity shares |
| Net Issue | 25,35,600 equity shares |
| Face Value | Rs. 10 per equity share |
| Listing | BSE SME |
| Offer for Sale | Nil |
| Object | Estimated Amount |
|---|---|
| Capital expenditure for purchase of equipment / machineries | Rs. 932.50 lakhs |
| Funding working capital requirement | Rs. 475.00 lakhs |
| Repayment / prepayment of certain borrowings | As per final issue proceeds and RHP objects |
| General corporate purposes | Balance amount |
The RHP states that the company had not placed orders for the proposed machinery as of the RHP date. This creates execution and cost-overrun risk if machine prices change or procurement is delayed.
Customer and Supplier Concentration
Customer Concentration
| Period | Top 1 Customer | Top 5 Customers | Top 10 Customers |
|---|---|---|---|
| November 30, 2025 | 20.84% | 66.45% | 83.31% |
| FY 2025 | 22.26% | 66.54% | 78.62% |
| FY 2024 | 25.58% | 91.88% | 100.00% |
| FY 2023 | 40.89% | 88.75% | 99.57% |
Supplier Concentration
| Period | Top 1 Supplier | Top 5 Suppliers | Top 10 Suppliers |
|---|---|---|---|
| November 30, 2025 | 12.45% | 40.52% | 58.88% |
| FY 2025 | 8.02% | 36.57% | 56.24% |
| FY 2024 | 83.93% | 99.49% | 100.00% |
| FY 2023 | 80.46% | 98.71% | 100.00% |
Key Business Strengths
- Presence in textile fabric manufacturing across Ikat, saree fabrics, dhupion fabrics, polyester garment fabrics, poly linen and natural fiber fabrics.
- Focus on women’s wear fabrics used in sarees, dress materials and kurtas.
- Promoter family has long textile background and operational experience.
- Revenue and profitability improved sharply in FY 2025.
- Total capacity utilisation was 92.57% in FY 2025.
- Exports to markets such as Singapore, Thailand, Bahrain and Cambodia.
- Pure Fresh Issue with no Offer for Sale.
Key Risks
1. Machinery Orders Not Yet Placed
The company proposes to use Rs. 932.50 lakhs for purchase of machinery, but the RHP states that orders had not been placed as of the RHP date.
2. Raw Material Price Risk
The company depends on yarn and related raw materials. Any increase in yarn prices without matching selling price increase can reduce margins.
3. Supplier Concentration
Top 10 suppliers contributed 58.88% of purchases for the period ended November 30, 2025 and 56.24% in FY 2025.
4. Customer Concentration
Top 10 customers contributed 83.31% of revenue for the period ended November 30, 2025 and 78.62% in FY 2025.
5. No Long-Term Customer Contracts
The company does not have long-term contracts with major customers and mainly operates on purchase orders.
6. Negative Operating Cash Flow
The company reported negative operating cash flow in FY 2025 and for the period ended November 30, 2025.
7. Working Capital Intensive Business
Net working capital increased to Rs. 1,187.88 lakhs as at November 30, 2025.
8. Related Party and Promoter Group Overlap
The RHP mentions promoter group entities and proprietary concerns operating in similar lines of business, along with potential conflict-of-interest risks.
9. Dependence on Leased Premises
The registered office and factory premises are not owned by the company and are taken on lease, including from promoter/promoter group members.
10. Seasonality and SME Listing Risk
The business is seasonal due to festive and wedding demand. Also, SME IPOs can have lower liquidity and higher volatility than mainboard IPOs.
IPORupee Insight
Harikanta Overseas Ltd is a textile fabric manufacturing company from Surat with focus on synthetic textile fabrics used mainly in women’s wear, sarees, dress materials and kurtas.
The positive side is that the company has shown strong improvement in financial performance. Revenue from operations increased from Rs. 1,111.22 lakhs in FY 2024 to Rs. 3,517.30 lakhs in FY 2025. PAT also increased from Rs. 81.98 lakhs in FY 2024 to Rs. 446.80 lakhs in FY 2025. For the period ended November 30, 2025, the company reported PAT of Rs. 508.58 lakhs, which is already higher than FY 2025 full-year PAT.
The company also reported total capacity utilisation of 92.57% in FY 2025. High utilisation may support the company’s decision to add new machinery, including rapier looms, high-speed air-jet looms and shuttleless rapier looms.
The IPO structure is also important. This is a pure Fresh Issue with no Offer for Sale. This means the money raised from the IPO will come into the company and can be used for business growth, working capital and other stated objects.
However, retail investors should not look only at revenue and PAT growth. The biggest concern is customer concentration. Top 10 customers contributed 83.31% of revenue for the period ended November 30, 2025 and 78.62% in FY 2025.
The second concern is cash flow. The company reported negative operating cash flow in FY 2025 and for the period ended November 30, 2025. Trade receivables increased sharply to Rs. 1,311.30 lakhs as at November 30, 2025. For a manufacturing company, profit should eventually convert into cash.
The third concern is working capital. Textile business needs money for yarn, inventory, production and receivables. If receivables remain high or inventory increases, more funds may be required.
Overall, Harikanta Overseas is a growing textile fabric manufacturing SME IPO with improved revenue, improved profitability and high FY 2025 capacity utilisation. However, investors should carefully study customer concentration, supplier concentration, negative operating cash flow, working capital pressure, machinery execution risk, related party arrangements and SME listing risk before making any IPO decision.
Retail Investors Should Check
- IPO valuation compared with EPS, PAT and cash flow
- Whether FY 2025 growth is sustainable
- Customer concentration in top 10 customers
- Supplier concentration and raw material price risk
- Trade receivables and collection quality
- Operating cash flow trend
- Working capital requirement after IPO
- Machinery purchase and expansion execution
- Related party transactions and promoter group business overlap
- SME listing liquidity risk
IPORupee Education
What is Textile Fabric Manufacturing?
Textile fabric manufacturing means converting yarn or textile inputs into fabric.
What is Synthetic Textile Fabric?
Synthetic textile fabric is fabric made from man-made fibers such as polyester and other synthetic blends.
What is Ikat Fabric?
Ikat fabric is a patterned fabric style where design and colour effects are created through a special weaving or dyeing method.
What is Dhupion Fabric?
Dhupion fabric is a fabric type used in ethnic and traditional clothing, including sarees and dress materials.
What is Poly Linen?
Poly linen is a fabric blend that gives a linen-like look or feel while using polyester or blended yarn.
What is Yarn?
Yarn is the basic raw material used to make fabric. In textile manufacturing, yarn is woven or processed into fabric using machines.
What is Weaving?
Weaving is the process of converting yarn into fabric by interlacing threads.
What is Rapier Loom?
A rapier loom is a weaving machine used to manufacture fabric with speed and flexibility.
What is Air-Jet Loom?
An air-jet loom is a weaving machine that uses air pressure to insert yarn during fabric production.
What is Capacity Utilisation?
Capacity utilisation shows how much of installed production capacity is actually used.
What is Job Work?
Job work means outsourcing part of production to another unit.
What is Working Capital?
Working capital is the money required to run day-to-day business operations.
What are Trade Receivables?
Trade receivables are amounts due from customers for goods already sold.
What is Operating Cash Flow?
Operating cash flow shows cash generated or used by normal business operations.
What is Fresh Issue?
Fresh Issue means the company issues new shares and receives money from investors.
What is Offer for Sale?
Offer for Sale means existing shareholders sell their shares through the IPO. In Harikanta Overseas IPO, there is no Offer for Sale.
What is SME IPO?
SME IPO means an IPO listed on an SME platform such as BSE SME or NSE SME.
What is Market Maker Reservation?
In SME IPOs, a portion of shares is reserved for the market maker to help provide liquidity after listing.
Full Forms
| Short Form | Full Form |
|---|---|
| IPO | Initial Public Offering |
| RHP | Red Herring Prospectus |
| SME | Small and Medium Enterprise |
| BSE SME | SME Platform of BSE Limited |
| BRLM | Book Running Lead Manager |
| ASBA | Application Supported by Blocked Amount |
| UPI | Unified Payments Interface |
| QIB | Qualified Institutional Buyer |
| NII | Non-Institutional Investor |
| EPS | Earnings Per Share |
| EBITDA | Earnings Before Interest, Tax, Depreciation and Amortisation |
| PAT | Profit After Tax |
| RoNW | Return on Net Worth |
| ROCE | Return on Capital Employed |
| NAV | Net Asset Value |
| DSCR | Debt Service Coverage Ratio |
| D/E Ratio | Debt to Equity Ratio |
| TPM | Twist Per Meter |
| GSM | Grams Per Square Meter |
| RMG | Ready-Made Garment |
| EPCG | Export Promotion Capital Goods |
| GPCB | Gujarat Pollution Control Board |
| GST | Goods and Services Tax |
| TDS | Tax Deducted at Source |
| PF | Provident Fund |
| ESI | Employees’ State Insurance |
| OFS | Offer for Sale |
Disclaimer
This content is for educational and informational purposes only. It is based on the company’s Red Herring Prospectus and publicly available IPO-related information. This is not investment advice, recommendation, research report or a call to apply or avoid the IPO. We are not SEBI registered investment advisors. Investors should read the RHP, check valuation, risk factors, financials, cash flows, working capital position, borrowings, customer concentration, supplier concentration, related party transactions, offer structure, SME listing risks, market conditions and consult their financial advisor before making any investment decision.
Subscription Data
IPO Structure
| Category | Percentage | No. of Shares Offered | Amount |
|---|---|---|---|
QIB | 2.13 % | 54,000 | 0.49 Cr |
Retail | 48.94 % | 12,40,800 | 11.29 Cr |
Total HNI | 48.93 % | 12,40,800 | 11.29 Cr |
SHNI | 16.33 % | 4,14,000 | 3.77 Cr |
BHNI | 32.60 % | 8,26,800 | 7.52 Cr |
Marker Maker | 0.00 % | 1,34,400 | 1.22 Cr |
Lot Size Details
| Application | Discount | Qty (Lot) | Total |
|---|---|---|---|
Retail MIN | - | 2400 (2) | ₹ 2,18,400 |
Retail MAX | - | 2400 (2) | ₹ 2,18,400 |
SHNI MIN | - | 3600 (3) | ₹ 3,27,600 |
SHNI MAX | - | 10800 (9) | ₹ 9,82,800 |
BHNI MIN | - | 12000 (10) | ₹ 10,92,000 |
Objectives
| Objective | No Of Shares | Amount |
|---|---|---|
Offer for Sale | 26,70,000 | 24.30 Cr |
IPO Blogs & News
| # | Title | Published Date |
|---|---|---|
| 1 | Harikanta Overseas Limited IPO: Opens in Two Days, Price Band, Issue Size and IPORupee Insight | 18-05-2026 , Monday |
Contact Details
IPO Contact Details
Registered Office
28, Sairam Ind Estate Bamroli,
Surat-394107, Gujarat, India
Corporate Office
28, Sairam Ind Estate Bamroli,
Surat-394107, Gujarat, India
Contact Person
Swati Malu - Company Secretary and Compliance Officer
Telephone
Website
Registrar to Issue Details
Registrar Name
Bigshare Services Private Limited
Contact Person
Babu Rapheal C
Telephone
Website
Lead Managers
| Name | Contact Person | Telephone | Website | |
|---|---|---|---|---|
Interactive Financial Services Limited | Pradip Sandhir | 079 4908 8019 / +91-9898055647 | mbd@ifinservices.in | www.ifinservices.in |