Surat-based company Borana Weaves Limited, which is engaged in the business of manufacturing unbleached synthetic grey fabric, has opened its Initial Public Offer (IPO) for subscription today, Tuesday, May 20, 2025. The firm looks to raise around ₹144.89 crore through a fresh issue of 67.08 lakh equity shares
Grey Market Premium (GMP) Update
As of the listing day, the Grey Market Premium (GMP) for Borana Weaves IPO is ₹55 per share. This implies a listing price expected to be approximately ₹271, representing a listing gain of around 25.46% over the top of the price band.
IPO Details
- Price Band: 7205 to 216 per share
- Lot Size: 69 shares
- Minimum Investment: ₹14,904
- Issue Type: Book Built Issue
- Issue Size: F144.89 crore
- IPO Open Date: May 20, 2025
- IPO Close Date: May 22, 2025
- Allotment Date: May 23, 2025
- Listing Date: May 27, 2025
- Listing Exchanges: BSE and NSE
Subscription Status (Day 1)
Based on the most current available statistics, the subscription status for Borana Weaves IPO is as below:
- Qualified Institutional Buyers (QIB): Ox
- Non-Institutional Investors (NIl): 0x
- Retail Individual Investors (RII): Ox
- Total: 0x
Note: Subscription numbers are anticipated to refresh throughout the day.
Company Overview
Started in 2020, Borana Weaves Limited is a company focused on manufacturing unbleached grey synthetic fabric and polyester textured yarn (PTY). The company produces items for use across different sectors such as fashion, home furnishings, and technical textiles. Borana Weaves has three production facilities in Surat, Gujarat, with sophisticated machinery, such as water jet looms, to increase production efficiency and quality of products
Financial Performance
Borana Weaves has shown robust financial growth in recent years:
- FY 2022-23:
- Revenue: F135.53 crore
- Net Profit: 716.30 crore
- FY 2023-24:
- Revenue: F199.60 crore
- Net Profit: 723.59 crore
- Nine Months Ending December 2024:
- Revenue: R211.61 crore
- Net Profit: 729.31 crore IPO Watch
The company’s Return on Net Worth (RoNW) is as high as 49.77%, reflecting efficient utilization of shareholders’ equity.
Use of IPO Proceeds
The proceeds of the IPO will be used for:
- Setting up a new manufacturing facility in Surat, Gujarat, to increase production capacity.
- Funding incremental working capital needs.
- General corporate purposes.
Analyst Recommendations
Analysts have given positive recommendations for Borana Weaves IPO:
- Anand Rathi Research: Suggested subscribing for the long term due to the company’s robust financials and future growth prospects. Business Standard
- Value Research: Picked up on Borana Weaves’ higher profitability compared to larger
textile peers, and Borana Weaves’ average EBIT margin over the last three years of approximately 14%.
How to Apply
Investors can apply for Borana Weaves IPO via:
- UPI-based ASBA: Through trading platforms such as Zerodha, Angel One, Upstox, Groww, etc.
- Net Banking ASBA: Through banks like HDFC Bank, SBI, ICICI Bank, Axis Bank, and
Kotak Mahindra Bank.
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