Borana Weaves Limited IPO GMP Price Date Details

With the intention of raising ₹145 crore, a textile manufacturing company that runs its operations in Surat and goes by the name of Borana Weaves Limited, has made the announcement of its IPO (Initial Public Offering). With the goal of enhancing its manufacturing capacity and enhancing its operations, the company is making quite the buzz in the Indian Stock Market space. The company has recently made headlines by catching investors’ attention by establishing itself as a solid company in the synthetic textile space.

Company Overview

Borona Weaves was established in 2020. Its main focus involves the production of unbleached synthetic grey fabric, a material that is very adaptable. This fabric is used in a wide range of areas such as fashion, technical textiles and home décor. Borona Weaves Limited has three manufacturing facilities, and all are located in Surat, Gujarat. Borana Weaves makes sure to dedicate substantial investments into cutting-edge textile producing technologies ,which includes texturizing, warping, water jet looms and textile folding.

Borana Weaves IPO Details

Issue Size: The IPO includes a new issue of 70,00,000 equity shares, each with a face value of ₹10.
Price Band: The IPO price range is established between ₹200 and ₹210 per share.
Subscription Period: The IPO started accepting subscriptions on May 20, 2025, and will conclude on May 22, 2025.
Listing: The shares are set to be listed on both the BSE and NSE.
Lead Manager: Beeline Capital Advisors Private Limited serves as the Book Running Lead Manager for this issue.
Registrar: KFIN Technologies Limited serves as the registrar for the offer. A key drawback of option buying is Theta decay. Theta represents the rate at which the option’s value erodes as time passes, assuming all else remains constant. As expiry approaches, this decay accelerates, negatively impacting buyers.

Objectives of the Borana Weaves Limited IPO

The net proceeds from the Borana Weaves IPO will be used for the following purposes:

Setting Up a New Manufacturing Unit: Roughly ₹71.35 crore will be invested in creating a new production facility in Surat, which will boost the company’s manufacturing capacity.
Increase in Working Capital :. An estimated ₹26.50 crore will be utilised to meet the additional working capital requirements.
General Corporate Activities : The remaining funds will be pushed towards general corporate activities to promote brand building and enhance operations.

Financial Performance

Borana Weaves has demonstrated impressive financial growth over the past few years:

Revenue:
- FY 2022: ₹42.33 crore
- FY 2023: ₹135.40 crore
- FY 2024: ₹199.06 crore
Profit After Tax (PAT):
- FY 2022: ₹1.80 crore
- FY 2023: ₹16.30 crore
- FY 2024: ₹23.59 crore
EBITDA Margin:
- FY 2022: 12.22%
- FY 2024: 20.68%

Judging by their constant growth, you can see that the company is efficient and determined to grow.

Industry Outlook

Growing interest for textiles from within India and the strong ability to export have helped the Indian textile industry grow in recent times. People are choosing explicitly synthetic textiles because they are stronger and less expensive. Focusing on unbleached synthetic grey fabric and textured polyester yarn has positioned Borana Weaves Limited strategically to capture its advantage in the emerging trends.

Strengths of Borana Weaves Limited

Advanced Manufacturing Capabilities: The company’s massive investment in cutting- edge machinery, including the 700 water jet looms, has amplified its production capacity.
Diversified Product Portfolio:. The textile produced by Borana Weaves Limited includes grey fabric and polyester textured yarn, maintaining a vertically integrated manufacturing process that improves quality control and cost efficiency.
Experienced Team: Borana Weaves Limited is run by the chairman Mr. Mangilal Borana who has more than 50 years of experience in textile industry under his belt. His leadership and management skills has been vital in growing the company’s progress.
Sustainable Initiatives:. Borana Weaves Limited has also made it point to follow sustainable practices by having water recycling initiatives, therefore aligning itself with the global sustainability trends.

Valuation and Pricing

A highly discussed element of any IPO is its valuation. At the maximum of the price band (₹210), Borana Weaves’ post-issue price-to-earnings (P/E) ratio is roughly 13.6x FY24 earnings, which seems fair in comparison to other companies in the synthetic textile manufacturing sector. Considering the company’s robust topline growth and solid EBITDA margins, the pricing suggests potential for further gains.

Moreover, with a return on net worth (RoNW) of 43.36% and asset-light expansions via modern machinery, Borana Weaves has maintained a balance between growth and operational efficiency—an important aspect long-term investors look for.

Peer Comparison

Let’s take a look at how Borana Weaves stacks up against some of its listed peers:

Company	Revenue (FY24)	PAT (FY24)	RoNW	P/E (TTM)
Borana Weaves	₹199.06 Cr	₹23.59 Cr	43.36%	~13.6x
Vishal Fabrics	₹1,010 Cr	₹41.2 Cr	18.00%	~17.2x
Nandan Denim	₹1,405 Cr	₹52.6 Cr	20.50%	~15.8x

While the larger players enjoy scale, Borana’s rapid growth and superior RoNW give it a strong foundation, especially for a relatively new entrant.

Retail Investor Opportunity

50% of the IPO was reserved for retail investors and 15% for non-institutional investors. While the remaining 35% for Qualified Institutional Buyers (QIBs). Retail investors may find this Borana Weaves Limited IPO attractive in terms of a short – to mid-term bet- especially those wanting to diversify and tap into the growing synthetic textile sector.

Post-IPO Outlook

Post listing, the company’s immediate focus will be on commissioning the new production facility and scaling output. With rising demand for synthetic fabrics globally, Borana Weaves Limited is in a position to emerge as a key player in exports as well. If execution remains on track, this IPO could mark the beginning of a promising growth story.

Risks and Concerns

Price Volatility of Raw Materials: Unpredictable change in raw material costs such as polyester may affect profit margins
Competition from Rivals : The textile industry is fiercely competitive, with many companies wanting to grab a chunk of the market share.
Regulatory Risks:. Government policies can be changed and trade regulations could be modified, in turn affecting the profitability and operations.

Grey Market Premium (GMP)

Borana Weaves Limited IPO GMP has reflected a strong interest from investors by being 1.8 oversubscribed, on the first day of the subscription itself. The Grey Market premium (GMP) was ₹55, which indicated a possible listing gain of around 25% from the issue price.

Borana Weaves IPO Subscription Status

The Borana Weaves IPO has generated significant investor interest by Day 3 of its subscription window, with the issue subscribed 51.31 times overall. Notably, retail investors led the charge, subscribing 116.39 times, followed closely by non-institutional investors (NIIs) at 106.43 times, indicating strong participation across categories.

Here's a concise subscription summary table:

Investor Category	Subscription (times)	Shares bid for	Shares Offered	Total Amount (Rs Cr.)
Anchor Investors	1	30,18,543	30,18,543	65.2
Qualified Institutions	2.06	41,45,520	20,12,457	89.54
Non-Institutional Buyers	106.43	10,70,87,379	10,06,200	2,313.09
bNII (bids above ₹10L)	102.52	6,87,68,712	6,70,800	1,485.40
sNII (bids below ₹10L)	114.25	3,83,18,667	3,35,400	827.68
Retail Investors	116.39	7,80,75,777	6,70,800	1,686.44
Total	51.31	18,93,08,676	36,89,457	4,089.07

Total Applications: 10,70,983

Borana Weaves IPO (Day-wise) Subscription Details (times)

Date	QIB	NII	NII (> ₹10L)	NII (< ₹10L)	Retail	Total
Day 1 May 20, 2025	1.54	11.64	9.33	16.24	25.55	8.66
Day 2 May 21, 2025	1.76	53.2	46.93	65.75	78.08	29.67
Day 3 May 22, 2025	2.06	106.43	102.52	114.25	116.39	51.31

Should You Invest?

Borana Weaves Limited has positioned itself as a promising investment choice due to robust financial results, sophisticated production abilities, and well-planned growth strategies. Moreover, investors should keep a keen eye about the risks involved when it comes the textile industry. They should also carry out a detailed comprehensive analysis and due diligence before investing in Borana Weaves Limted.

Disclaimer: This blog is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.

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FAQ'S

What are the key details of the Borana Weaves Limited IPO?

The Borana Weaves Limited IPO opens on May 20, 2025, and closes on May 22, 2025.

Issue Size: ₹144.89 crore
Price Band: ₹205 to ₹216 per share
Lot Size: 69 shares
Minimum Investment: ₹14,904 (at ₹216 per share)
Listing Date: Tentatively May 27, 2025, on NSE and BSE

What is the Borana Weaves Limited IPO GMP (Grey Market Premium)?

The Borana Weaves Limited IPO GMP is around ₹55–₹60 per share as of May 20, 2025.
This suggests a potential listing gain of approximately 25%–28% over the issue price.
The strong grey market activity shows positive sentiment around the Borana Weaves IPO.

How is the subscription status of Borana Weaves IPO?

The Borana Weaves IPO was subscribed 7.76 times on Day 1:

Retail Investors: 23.26 times
NII (Non-Institutional Investors): 9.85 times
QIB (Qualified Institutional Buyers): 1.54 times

This overwhelming response shows high investor confidence in the Borana Weaves Limited IPO.

What does Borana Weaves Limited do?

Borana Weaves Limited in Surat, Gujarat, specializes in producing unbleached synthetic grey fabric. Fashion apparel, traditional wear and home textiles often make use of their fabrics.

Starting in 2020, the company began operations with three manufacturing units, reaching an average utilization rate of around 80% in FY24.