Harikanta Overseas IPO

Harikanta Overseas weaves synthetic fabric in Surat, Gujarat. Its range covers saree fabric, dhupion, poly linen, polyester garment fabric, Ikat and natural-fibre cloth, sold mainly as dress material for women's wear — sarees, dress materials and kurtas — with some fabric for men's kurtas; most of what it makes ends up in sarees. The promoters' family worked manual power looms from home before they incorporated this company in October 2018 to reach export markets. It started out supplying merchant exporters and Surat buyers, then shipped directly to Cambodia, Bahrain, Singapore and Thailand while adding domestic customers in Delhi, Bangalore, Maharashtra, Uttar Pradesh, Punjab and Rajasthan. Weaving runs from a 953.93 sq. m. unit at Bamroli, staffed by 111 permanent employees as of 28 February 2026.

Revenue is woven fabric sold by the metre, plus export duty drawback — ₹67.90 lakh of the ₹26.08 Cr of operating revenue booked in the eight months to 30 November 2025. Yarn dominates cost: material consumed absorbed 42.85% of total income in that period and employee cost 14.91%. Yarn is bought in the local Surat market through a group proprietorship, Harikanta Yarns, with no long-term supply agreement, so margin tracks yarn prices. Loom capacity is the binding constraint — FY25 utilisation ran between 88.61% and 95.79% across the six product lines — which is why the issue earmarked ₹5.40 Cr for a factory building and ₹9.33 Cr for looms and machinery, against ₹4.75 Cr for working capital.