A Surat-based synthetic textile fabric manufacturer plans to raise Rs 23.07 crore via the BSE SME platform.
Harikanta Overseas Ltd., a synthetic textile fabric manufacturer from Surat, Gujarat, opens for subscription on May 20 with the issue closing on May 27. The company is listing on the BSE SME platform.
What the Company Does
Incorporated in 2018, Harikanta Overseas manufactures synthetic textile fabrics at its unit in Sai Ram Industrial Estate, Bamroli, Surat. The company is strongly export-oriented — around 64% of FY25 revenue came from overseas, with Cambodia alone accounting for approximately 40% of total revenue, followed by Thailand, Bahrain, and Singapore. Domestically, Gujarat is the primary market, with presence across Delhi, Bengaluru, Maharashtra, Uttar Pradesh, Punjab, and Rajasthan.
The company is ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified. As of February 28, 2026, it had 111 permanent employees. Its subsidiary, Harikanta Weaving Private Limited, supports manufacturing with 16 rapier looms.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | May 20, 2026 |
| Issue Closes | May 27, 2026 |
| Listing | BSE SME (June 2, 2026) |
| Price Band | Rs 86 – Rs 91 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 23.07 crore (100% Fresh Issue) |
| Lot Size | 1,200 shares (min 2 lots = 2,400 shares) |
| Min. Retail Investment | Rs 2,18,400 |
| BRLM | Interactive Financial Services Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
| Market Maker | Aftertrade Broking Pvt. Ltd. |
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 8M FY26 |
|---|---|---|---|---|
| Revenue | 14.32 | 10.58 | 35.50 | 26.28 |
| PAT | 0.25 | 0.82 | 4.47 | 5.09 |
| PAT Margin | 1.75% | 7.75% | 12.60% | 19.37% |
The standalone financial history through FY23 and FY24 is uninspiring — revenue of Rs 14.32 crore declining to Rs 10.58 crore and profits barely above break-even at Rs 0.25 crore and Rs 0.82 crore respectively. The subsequent jump to Rs 35.50 crore in revenue and Rs 4.47 crore in PAT in FY25 on a consolidated basis is sharp, and the 8M FY26 numbers imply an even steeper trajectory.
The dramatic improvement in margins from under 2% to nearly 20% in a short period in a textile manufacturing business warrants careful scrutiny. Top 10 customers accounted for 78.62% of total revenue in FY25 — a high concentration. The BRLM, Interactive Financial Services, has a poor track record.
Risks to Consider
Geographic revenue concentration with Cambodia contributing ~40% of total revenue creates a structural dependence on a single overseas market that could be disrupted by trade policy changes, currency movements, or shifts in buying patterns. The dramatic profit improvement from a very low base in FY23 and FY24, arriving just ahead of the IPO, invites natural questions about durability. Post-listing liquidity could be thin given the small issue size and poor subscription response the issue is likely to receive.
Analyst View
Independent analysts have taken a negative view of this issue. The analyst notes that on a standalone basis the company posted lackluster financial performance for FY23 and FY24, and that bumper profits from FY25 onwards raise eyebrows and concern over sustainability. The BRLM’s poor track record is flagged as an additional concern. The conclusion: though the issue looks fully priced on recent numbers, it appears aggressively priced otherwise, say analysts.