Borana Weaves Limited IPO...
22 May, 2025
Borana Weaves Limited IPO
Borana Weaves Limited, a synthetic fabric maker based in Surat with a strong reputation, plans to enter the stock market with its upcoming Mainboard IPO. The company will open its public offering on May 20, 2025, sparking a lot of attention in the textile and investment worlds. The firm has a solid foothold in the synthetic textile field and shows steady financial results. It hopes to get ₹144.89 crore by selling new shares to the public.
Company Overview and Core Business
Borana Weaves Limited was set up in 2020 with its base in Surat Gujarat, which makes unbleached synthetic grey fabric and polyester textured yarn (PTY yarn) from start to finish. Grey fabric serves as a key ingredient for dyeing and printing in many fields such as fashion, old-school textiles, high-tech fabrics, home decor, and interior design. The firm runs three cutting-edge plants in Surat churning out 233.28 million meters each year. These facilities house 700 water jet looms, 15 machines to texture yarn, six to warp, and ten to fold fabric.
WHAT IS GMP?
GMP (Grey Market Premium) is the difference between the IPO price and the grey market price. It is the premium amount paid for the traded IPO shares. It plays an important role in IPOs as it reflects how the IPO would react on the listing day.
A grey market is a place where shares/stocks are traded before being listed officially on the stock exchange.
Borana Weaves Limited IPO
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| - | - | - | - |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Borana Weaves Limited IPO Details
| Detail | Description |
|---|---|
| IPO Date | May 20, 2025 to May 22, 2025 |
| Listing Date | - |
| Face Value | ₹10 per share |
| Issue Price | ₹216 per share |
| Lot Size | 69 Shares |
| Total Issue Size | 67,08,000 shares (aggregating up to ₹144.89 Cr) |
| Fresh Issue | 67,08,000 shares (aggregating up to ₹144.89 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | BSE, NSE |
| Share Holding Pre Issue | 1,99,37,295 shares |
| Share Holding Post Issue | 2,66,45,295 shares |
Borana Weaves Limited IPO Timeline
| Detail | Description |
|---|---|
| IPO Open Date | Tue, May 20, 2025 |
| IPO Close Date | Thu, May 22, 2025 |
| Tentative Allotment | Fri, May 23, 2025 |
| Initiation of Refunds | Mon, May 26, 2025 |
| Credit of Shares to Demat | Mon, May 26, 2025 |
| Tentative Listing Date | Tue, May 27, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on May 22, 2025 |
Borana Weaves Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 69 | ₹14,904 |
| Retail (Max) | 13 | 897 | ₹1,93,752 |
| S-HNI (Min) | 14 | 966 | ₹2,08,656 |
| S-HNI (Max) | 67 | 4,623 | ₹9,98,568 |
| B-HNI (Min) | 68 | 4,692 | ₹10,13,472 |
Borana Weaves IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 30,18,543 (45.00%) |
| QIB Shares Offered | 20,12,457 (30.00%) |
| NII (HNI) Shares Offered | 10,06,200 (15.00%) |
| bNII > 10L | 6,70,800 (10.00%) |
| sNII < 10L | 3,35,400 (5.00%) |
| Retail Shares Offered | 6,70,800 (10.00%) |
| Total Shares Offered | 67,08,000 (100%) |
Borana Weaves Limited IPO Promoter Holding
| Share Holding Pre Issue | Share Holding Post Issue |
|---|---|
| 87.19% | - |
Competitive Strength:
- 1. Surat's textile hub offers a strategic location.
- 2. The company runs advanced manufacturing units with large capacity.
- 3. Facilities have expanded and operate at high efficiency.
- 4. Financial performance shows strong growth and profits.
- 5. An experienced promoter and management team lead the company.
Borana Weaves Limited IPO Financial Information
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Total Borrowing | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 2024 | 149.67 | 215.71 | 29.31 | 76.55 | 54.03 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2024 | 137.05 | 199.6 | 23.59 | 47.39 | 69.1 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2023 | 74.98 | 135.53 | 16.3 | 24.11 | 38.89 | |||||||||||||||||||||||||||||||||||
| 31 Mar 2022 | 31.9 | 42.36 | 1.8 | 1.81 | 27.31 | |||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 49.45% |
| ROCE | 27.42% |
| RoNW | 49.77% |
| PAT Margin | 11.85 |
| Price to Book Value | 9.09 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 11.83 | 14.66 |
| P/E (x) | 18.26 | 14.73 |
Objectives of the IPO
Borana Weaves plans to raise ₹144.89 crore by issuing new equity shares. They intend to use this money in a few key ways.
- Expanding Capacity: A large chunk of the IPO money will be spent on growing their manufacturing operations. They will add new high-speed looms, bring in automation tech, and improve the supporting infrastructure. Their goal is to increase production to meet rising demand at home and abroad.
- Working Capital Needs: The textile business deals with high volumes, so managing working capital well becomes vital. Part of the funds will go toward keeping inventory levels stable, managing receivables, and improving cash flow cycles.
- General Corporate Use: The leftover money will help grow the business, improve branding, and upgrade administrative systems. It also gives the company some financial flexibility to grow later or explore partnerships.
- Building Market Presence: After the IPO, the company wants to boost its brand visibility, create stronger distribution networks, and enter new regions to grow its customer base.
Conclusion
Borana Weaves plans its IPO at a time when interest in textile stocks is making a comeback. The company shows strong financial stability, a business model that can grow further, and clear plans to expand. It provides an interesting option to those wanting to invest in mid-cap manufacturing companies.
The Borana Weaves IPO stands out as a solid choice. It offers a dependable business in a growing sector guided by experienced leadership and built on solid foundations. For those who believe in India's manufacturing growth and long-term potential, this IPO might offer the perfect chance to invest.
RHP:
DRHP:
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Frequently asked Questions (FAQs )
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1. What is the Borana Weaves IPO?
Borana Weaves Limited plans to launch a mainboard IPO on BSE and NSE. The company aims to offer up to 67,08,000 new equity shares to raise about ₹144.89 crore. The IPO will start on May 20, 2025, and end on May 22, 2025. The price range for the shares stands at ₹205–₹216 each.
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2. What are the objectives of the Borana Weaves IPO?
The company intends to use the money from the IPO to set up a new factory in Surat, boost production of synthetic grey fabric, finance additional working capital needs, and support overall business goals.
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3. What is the minimum investment required for retail investors?
Retail investors need to buy at least 69 shares to invest. This means they must spend ₹14,904 at the highest price point. They can purchase up to 13 lots, or 897 shares, which costs ₹1,93,752.
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4. Who are the promoters of Borana Weaves Limited?
Borana Weaves Limited has several promoters. These include Mangilal Ambalal Borana, Ankur Mangilal Borana, Rajkumar Mangilal Borana, and Dhwani Ankur Borana. The promoters also include family HUFs and Borana Filaments Private Limited.
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5. What is the grey market premium (GMP) for the IPO?
On May 22, 2025, Borana Weaves shares had a GMP of around ₹60 above the upper price band, showing positive investor sentiment.
