The SME IPO of Harikanta Overseas will open for subscription on Wednesday, with grey market activity indicating muted sentiment ahead of the issue launch. According to market trackers, the IPO was commanding a grey market premium (GMP) of 0%, suggesting no premium over the upper end of the price band in the unofficial market.
The BSE SME issue aims to raise around Rs 25.63 crore through an entirely fresh issue of 26.7 lakh shares. The IPO will open for subscription on May 20 and close on May 22. Shares are tentatively scheduled to list on the BSE SME platform on May 27.
The company has fixed the price band at Rs 91-96 per share. Investors can bid for a minimum of 1,200 shares, but retail investors will have to apply for at least two lots or 2,400 shares, translating into a minimum investment of Rs 2.3 lakh at the upper price band.
For small non-institutional investors, the minimum application size has been fixed at 3,600 shares amounting to Rs 3.45 lakh.
Harikanta Overseas manufactures synthetic textile fabrics used primarily in ethnic and fashion wear categories. Its product portfolio includes saree fabrics, polyester garment fabrics, dhupion fabrics, poly linen, Ikat fabrics and natural fibre fabrics.
The company mainly supplies fabrics used in women’s wear including sarees, dress materials and kurtas, while also catering to men’s ethnic wear segments.
Harikanta Overseas operates a manufacturing facility in Surat, Gujarat and exports products to markets including Bahrain, Singapore and Thailand. Apart from exports, the company also serves domestic markets across states including Delhi, Karnataka, Maharashtra, Punjab, Rajasthan and Uttar Pradesh.
The IPO proceeds will primarily be used for working capital requirements and general corporate purposes as the company looks to expand operations.
Interactive Financial Services is the book-running lead manager to the issue, while Bigshare Services is acting as the registrar. Aftertrade Broking is the market maker for the IPO.
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