The initial public offer (IPO) for Harikanta Overseas opened for bidding on Wednesday, May 20, with the offer closing for subscription on May 22. According to reports from Mint and The Economic Times, the company has fixed its price band at ₹91 to ₹96 per share, with the company looking to raise ₹25.63 crore at the upper end of the offer price. The SME IPO is entirely a fresh issue of 0.27 crore shares, with no offer-for-sale (OFS) component, meaning that all proceeds will be received by the company.
As reported by Mint, the offer was booked 9 times as of 4.20 pm on the first day of bidding, receiving bids for 2,50,800 shares against 26,70,000 shares on offer. The retail investor segment was booked 5%, while the non-institutional investor (NII) quota was subscribed 0.10 times. Investors can apply for the offer in lots of 1,200 shares. According to The Economic Times, the grey market premium (GMP) for Harikanta Overseas IPO remained nil so far, indicating muted investor sentiment with shares expected to list at par with the upper end of the price band of ₹96 per share.
According to Mint, the company plans to use the funds raised from the fresh share sale for meeting capital expenditure needs towards purchasing new machines and setting up factory premises, along with working capital needs and general corporate purposes. Harikanta Overseas IPO allotment is expected to be finalised next week on May 25, with the listing likely on May 27 on the BSE SME platform. As reported by The Economic Times, the funds will bolster working capital and general corporate needs as the textile fabric manufacturer expands its operations.
As reported by Mint, the company is a manufacturer of synthetic textile fabrics with products ranging from Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen, and natural fibre fabrics. The company mainly supplies fabrics for women's wear, such as sarees, dress materials, and kurtas, while also offering fabrics for men's kurtas. Currently, it has a manufacturing unit in Surat, Gujarat and exports to markets in Delhi, Bangalore, Karnataka and international destinations like Bahrain, Singapore and Thailand.
According to The Economic Times, Harikanta Overseas IPO is part of the broader SME IPO activity, with Vegorama Punjabi Angithi's SME IPO also opening Wednesday, priced between ₹73-77 per share and targeting ₹38.38 crore to fund expansion including new cloud kitchens and infrastructure upgrades. The company aims to raise funds for working capital and general corporate purposes as it expands its operations in the textile fabric manufacturing sector. Four SME IPOs are set to open this week across food, construction and textile sectors, aiming to raise over ₹138 crore.
