Harikanta Overseas SME IPO Review | APPLY or AVOID?
Harikanta Overseas Limited started in 2018. It operates in the Textile industry and provides synthetic textile fabric manufacturing to its customers across India and internationally. This business is based in Surat, Gujarat. This IPO review covers the main facts of the offer. It helps you decide if the issue fits your portfolio. Harikanta Overseas shows rapid growth, but the revenue volatility remains a key point to consider for investors. The company has shown a massive jump in revenue and net profit from FY24 to FY25, which needs careful examination to ensure sustainability. The company operates in a highly competitive and fragmented segment where sudden profit jumps raise serious doubts.
| IPO Details | |
|---|---|
| Issue Type | Book Building |
| IPO Category | SME |
| Face Value | ₹10 Per Share |
| Fresh Issue | ₹25.63 Cr. |
| Offer for Sale | ₹- Cr. |
| Refunds Initiation | May 26, 2026 |
| Credit of Shares | May 26, 2026 |
| Listing At | BSE SME |
| Reservation & Lot Size | |
|---|---|
| Retail (Min) Small Investor Quota | 2 Lot | 2,400 Shares ₹2,34,00 |
| Retail (Max) Retail Investment Limit | 2 Lot | 2,400 Shares ₹2,34,000 |
| S-HNI (Min) Small HNI (₹2L – ₹10L) | 3 Lot | 3,600 Shares ₹3,45,600 |
| S-HNI (Max) Small HNI (Up to ₹10 L) | 8 Lot | 9,600 Shares ₹9,21,600 |
| B-HNI (Min) Big HNI (Above ₹10L) | 9 Lot | 10,800 Shares ₹10,36,800 |
| Market Maker Designated Broker | 1,34,400 Shares Reserved portion |
✅ Strengths
⚠️ Challenges
Financial Update
The company released its restated financial statements for the year ending March 31, 2025. Total revenue was ₹35.50 crore, increased from ₹11.27 crore in the previous year. The net profit for the same period was ₹4.47 crore, an increase from ₹0.82 crore in the previous year. Assets increased by 250% compared to the previous year.
The standalone total income stood at ₹15.06 crore during FY23. The standalone net profit reached ₹0.25 crore during that same fiscal year. The consolidated total income stood at ₹26.28 crore during the eight month period ending November 30, 2025. The consolidated net profit reached ₹5.09 crore during this same eight month period. The profit margins grew significantly from 1.69% in FY23 to 19.50% in the latest eight month period. Investors should check the factors that are giving this high profit jump to see if it is sustainable in the future. This trend should be carefully studied before any investment.
IPO Valuation
The upper price band is ₹96. This price leads to a Price-to-Earnings (P/E) ratio of 21.19 based on FY25 earnings. The average P/E for the industry is -. The asking price shows a P/E ratio of 12.42 if we calculate it using the annualized earnings of FY26. The company is seeking a total market capitalization of ₹94.71 crore at the higher price limit. The price to book value ratio is 3.68 based on the net asset value of ₹26.08 per share. The management has omitted the post-issue net asset value metrics from the official public documents.
IPO Objective
The company will use the proceeds of the offer to meet stated objectives:
- Capital Expenditure for Factory premises: ₹5.40 Cr.
- Capital Expenditure for purchase of machinery: ₹9.33 Cr.
- Working Capital Requirement: ₹4.75 Cr.
- General Corporate Purpose: The remaining amount is for general corporate needs.
Promoters & Lead Manager
- Promoters: Hardik Gotawala, Abhishek Gotawala, and Nilesh Gotawala are the company promoters. Their pre-issue holding is 96.87%.
- Lead Manager: Interactive Financial Services Ltd. The lead manager helps in pricing, marketing, and the overall management of the IPO process.
- The average acquisition cost per share for promoters is either ₹7.73 or ₹7.89.
- The company issued bonus shares in a ratio of 6 for 1 in December 2024.
- Interactive Financial Services Ltd managed 31 mandates in the last five fiscal years.
- Six out of the last eleven listings opened at a discount price.
- One previous listing opened exactly at par value.
- The remaining listings opened with a premium between 1.10% and 15.43% on listing day.
Peer Comparison
Below is the comparison of the company with its listed peers using data from May 14, 2026. The company listed Betex India Limited and Swasti Vinayaka Synthetics Limited as peers. These competitors trade at a P/E ratio of 16.0 and 15.8, respectively. The listed competitors do not provide an accurate comparison for this business. This financial comparison serves as an eyewash for public investors.
| Company Name | EPS (Basic) | NAV (₹ per share) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|
| Harikanta Overseas Ltd. | 9.84 | 19.13 | 33 | ||
| Betex India Ltd. | 13.03 | 227.34 | 28.01 | 5.73 | 1.61 |
| Swasti Vinayaka Synthetics Ltd. | 0.27 | 2.55 | 12.78 | 10.54 | 1.5 |
Financial data sourced from annual reports and stock exchange data, using restated financial statements for 2024-25. NAV per share (closing net worth divided by weighted average number of paid-up equity shares) and RoNW (net profit after tax divided by closing net worth).
IPO Review & Analyst Rating
Harikanta Overseas Limited is coming out with a fresh issue of an SME IPO. The company operates in the growing textile sector. While its FY25 and 8M-FY26 figures suggest a full price, the overall pricing seems aggressive. The official offer document pages contain no visible numbering system. The lead manager holds a poor listing history in the market. Experts say, the IPO is pricey and risky, with a long gestation period and a poor track record.
| Analyst Name | Recommendation |
|---|---|
Disclaimer: The information on the site is informational only. The contents of this blog are not financial advice. You should not invest in any stock market instrument without consulting your Financial advisor.
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