Harikanta Overseas IPO: The initial public offering (IPO) of Harikanta Overseas opened for public subscription on Wednesday, May 20, and will remain available for bidding until May 22.
The company has fixed the IPO price band at ₹91-96 per share and aims to raise around ₹35.6 crore at the upper end of the price band. The SME issue consists entirely of a fresh issuance of nearly 0.27 crore equity shares and does not include any offer-for-sale (OFS) portion. As a result, the entire proceeds from the issue will go directly to the company.
The basis of allotment for the IPO is expected to be finalised on Monday, May 25. Eligible investors are likely to receive shares in their demat accounts on Tuesday, May 26, while refunds for unsuccessful bidders are also expected to be initiated on the same day.
Shares of the company are proposed to be listed on the BSE SME platform, with the tentative listing date scheduled for May 27.
According to the company, the proceeds from the fresh issue will be utilised towards capital expenditure requirements, including the purchase of new machinery and establishment of factory premises. A portion of the funds will also be allocated towards working capital requirements and general corporate purposes.
Retail investors can bid for a minimum of two lots, with each lot comprising 1,200 shares. At the upper end of the price band, the minimum investment required from retail investors stands at around ₹2.3 lakh for 2,400 shares.
Interactive Financial Services Ltd has been appointed as the book-running lead manager to the issue, while Bigshare Services Pvt Ltd is acting as the registrar. Aftertrade Broking Pvt Ltd will serve as the market maker for the IPO.
Harikanta Overseas IPO GMP
Investor sentiment toward the IPO is muted, as KSH International’s grey market premium (GMP) is ₹0 on 22 May. This suggested that the stock was likely to debut at ₹96, same as IPO price.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Harikanta Overseas IPO Subscription
The IPO was subscribed 0.12x by 12:05 pm on Day 3. The retail portion was subscribed 0.20x, and NII portion was booked 0.01x, Qualified Institutional Buyers (QIBs) portion received 1x bids. Moreover, the employee portion was subscribed 1.26x.
The company has received bids for 2.82 lakh shares against 25.35 lakh shares on offer.
About the company
Established in 2018, Harikanta Overseas operates in the synthetic textile fabric manufacturing segment, offering a diverse portfolio that includes Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen and natural fibre fabrics. The company primarily caters to the women’s wear segment through products used in sarees, dress materials and kurtas, while also supplying fabrics for men’s kurtas.
Harikanta Overseas runs its manufacturing operations from Surat, Gujarat, where it has set up a production facility spread across 953.93 square metres at Sai Ram Industrial Estate-2, Bamroli.
Apart from serving domestic markets such as Delhi, Bangalore, Karnataka, Maharashtra, Uttar Pradesh, Punjab and Rajasthan, the company also exports its products to international destinations including Bahrain, Singapore and Thailand.
