Harikanta Overseas Limited is a manufacturer of synthetic textile fabrics. The company’s product portfolio includes Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen, and natural fibre fabrics. Its fabrics are primarily used for women’s wear, such as sarees, dress materials, and kurtas, while also catering to fabrics for men’s kurtas.
The company supplies products to both domestic and international markets, with exports to countries, including Cambodia, Bahrain, Singapore, and Thailand.
Harikanta Overseas operates a manufacturing facility in Surat, Gujarat, spread across approximately 953.93 square metres at Sai Ram Industrial Estate-2, Bamroli. The company also undertakes finishing, packaging, and quality checks for products sourced through third-party job workers when required. In addition, its wholly owned subsidiary, Harikanta Weaving Private Limited, supports manufacturing operations and job work with rapier looms and related machinery.;
Founded in
2018
MD/CEO
Mr Hardik Gotawala
Parent organisation
Harikanta Overseas Ltd
Harikanta Overseas Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
Harikanta Overseas Limited derives a significant portion of its revenue from exports. In FY25, export sales and merchant exports together contributed over 64% of its operating revenue. The company exports products such as Ikat fabrics to countries including Cambodia, Thailand, Bahrain, and Singapore, which helps diversify its market presence.
The company operates a manufacturing facility in Surat, Gujarat, a major synthetic textile manufacturing hub. This location provides access to raw material suppliers, textile infrastructure, logistics connectivity, and a skilled workforce involved in textile production.
Harikanta Overseas manufactures a diversified range of textile fabrics, including Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen, and natural fibre fabrics. The company has also expanded its product portfolio after acquiring machinery from associate entities in September 2024 and has started manufacturing additional fabric categories.
The company claims to have flexible production capabilities that allow it to handle both bulk and customised fabric orders. According to the prospectus, it undertakes customised production for fabrics used in sarees, dress materials, kurtas, and other apparel applications while also managing shorter turnaround requirements.
The company’s subsidiary, Harikanta Weaving Private Limited, supports manufacturing operations and job work activities. The subsidiary claims to have 16 rapier looms along with supporting machinery, which assists in the timely execution of domestic and export orders.
The company is ISO 9001:2015 certified for quality management systems for manufacturing textile fabrics. It is also ISO 14001:2015 certified for environmental management systems and ISO 45001:2018 certified for occupational health and safety management systems
The company has witnessed a consistent increase in its profit after tax (PAT). PAT increased from Rs 0.25 crore in FY23 to Rs 0.82 crore in FY24 and Rs 4.47 crore in FY25.
The company is significantly dependent on yarn and related raw materials such as air tex yarn, texturised poly yarn, and TPM poly yarn for its manufacturing operations. Any price fluctuations or non-availability of these raw materials due to supply-demand imbalances, changes in government policies, import duties, or foreign exchange movements can negatively impact the company’s margins and profitability.
The company has a concentrated supplier base. The top 10 suppliers contributed Rs 13.42 crore (56.24%) of total purchases in FY25, Rs 5.54 crore (100%) in FY24, and Rs 9.49 crore (100%) in FY23. Any disruption in supplies from these key vendors can adversely affect the company’s production schedules, operations, and financial condition.
The company recorded negative cash flows from operating activities amounting to Rs 0.43 crore in FY25. Cash generated from operating activities has steadily fallen from FY23 to FY25, meaning that sales on credit are increasing over the years. The company may need to access debt funding to run day-to-day operations, which, in turn, will increase finance costs and pinch the net profit.
The company has contingent liabilities amounting to Rs 0.84 crore as of FY25, primarily related to obligations under the EPCG Scheme and bank guarantees issued on behalf of the company. If any of these contingent liabilities materialise, it could adversely affect the company’s financial condition, liquidity position, and results of operations.
The company’s business is seasonal in nature, with higher demand during festive seasons, weddings, and cultural events. Any slowdown in demand or unexpected changes in consumer spending and fashion trends can adversely affect the company’s sales, inventory management, manufacturing utilisation, and profitability.
The company derives a significant portion of its revenue from a limited number of customers. The top 10 customers contributed Rs 27.14 crore (78.62%) of total revenue in FY25, Rs 10.58 crore (100%) in FY24, and Rs 14.32 crore (99.57%) in FY23. Any loss of these key customers or reduction in orders from them could adversely affect the company’s business, financial condition, and cash flows.
The company’s promoter and director are involved in certain ongoing statutory and regulatory proceedings. Any adverse outcome in these litigation proceedings could negatively impact the company’s reputation, business operations, and financial condition.
Application details
For Harikanta Overseas IPO, eligible investors can apply as Individual investor.
Apply as
Price band
Apply range
Lot size
Individual investor
₹86 - ₹91
₹2 - ₹5 Lakhs
1200
About
Objective of Harikanta Overseas Ltd IPO
Objective
Purpose
Amount (₹ Cr)
Working Capital Requirements
Funding inventory, receivables, and operational expansion needs
52.00
Repayment / Prepayment of Borrowings
Reducing debt obligations and finance costs
18.50
Capital Expenditure
Purchase of machinery and infrastructure enhancement
9.75
General Corporate Purposes
Miscellaneous strategic and business requirements
Balance proceeds
Book Running Lead Managers & Registrar of Harikanta Overseas Ltd IPO
Role
Name
Book Running Lead Manager (BRLM)
Fedex Securities Private Limited
Registrar to the Issue
Cameo Corporate Services Limited
Market Maker
Rikhav Securities Limited
Key Performance Indicators (KPIs) of Harikanta Overseas Ltd IPO