Harikanta Overseas IPO Update: Day Four Shows Strong Subscription, Exceeds 50% Booking Target

Harikanta Overseas IPO Books 50% on Fourth Day of Book-Building Process

The initial public offering (IPO) of Harikanta Overseas has seen a moderate response from investors, with the issue being booked a little over 50% on the fourth day of the book-building process on Monday, 25 May. The offer opened for subscription on 20 May and will close later this week on 27 May.

The Harikanta Overseas IPO is worth ₹24.30 crore, which is entirely a fresh issue of 0.27 crore shares, priced in the range of ₹86 to ₹91 apiece. Since the SME IPO has no offer-for-sale (OFS) component, all proceeds will be received by the company. The funds raised will be used to meet capital expenditure needs for factory premises and the purchase of machinery, along with working capital needs and general corporate purposes.

Harikanta Overseas: A Synthetic Textile Fabric Manufacturing Company

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Established in 2018, Harikanta Overseas operates in the synthetic textile fabric manufacturing segment, offering a diverse portfolio that includes Ikat fabrics, polyester garment fabrics, saree fabrics, dhupion fabrics, poly linen, and natural fibre fabrics. The company primarily caters to the women's wear segment through products used in sarees, dress materials, and kurtas, while also supplying fabrics for men's kurtas.

IPO Subscription Status

As of 4:30 pm on the fourth day of bidding, Harikanta Overseas IPO was booked 0.56 times, garnering bids for 14,94,000 shares as against 26,70,000 shares on offer. The qualified institutional buyer (QIB) segment was booked the most at 11.18 times, with the non-institutional investor (NII) and retail quotas subscribed 0.34 times each.

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Grey Market Activity Remains Weak

The grey market activity for Harikanta Overseas remains weak. According to data from websites tracking grey market premium (GMP), Harikanta Overseas IPO GMP is nil. This means that shares of Harikanta Overseas are trading at par with the offer price. At the current GMP, Harikanta Overseas IPO listing could occur with neither gains nor losses for investors. Shares of Harikanta Overseas IPO are expected to list on the BSE SME on 2 June.