Borana Weaves Limited, based in Surat, is a prominent manufacturer specializing in unbleached synthetic grey fabric. This fabric serves as a foundational raw material widely used for further processing in industries such as fashion, traditional textiles, technical textiles, home décor, and interior design. The company’s versatile grey fabric integrates seamlessly with various unbleached fabrics, making Borana Weaves an essential player in the textile supply chain.

IPO Details and Subscription

Borana Weaves is launching a Book Built Issue IPO with a fresh issue size of ₹144.89 Crores, comprising 67.08 lakh equity shares. The IPO subscription window opens on May 20, 2025, and closes on May 22, 2025. The allotment is expected to be finalized on or about May 23, 2025 (Friday), and the shares are slated for listing on both the NSE and BSE around May 27, 2025 (Tuesday).

The IPO is priced in a band of ₹205 to ₹216 per equity share. At the upper price band of ₹216, Borana Weaves Limited will have a market capitalization of approximately ₹575.53 Crores. The minimum lot size is 69 shares, with retail investors needing to invest at least ₹14,904 and High-Net-Worth Individuals (HNIs) required to apply for a minimum of 14 lots (966 shares) amounting to ₹2,08,656.

Beeline Capital Advisors Private Limited acts as the Book Running Lead Manager for the IPO, while KFIN Technologies Limited is the registrar.

Grey Market Premium (GMP) and Listing Outlook

The Grey Market Premium (GMP) for Borana Weaves IPO is currently estimated at ₹50, indicating expected listing gains of approximately 23.14% over the IPO price band upper limit. It is important to note that GMP operates in an unofficial market and depends on unorganized demand and supply, so it should be viewed for informational purposes only, not as a formal price discovery mechanism.

Live Subscription Status (As of May 20, 2025)

On the first day of subscription, Borana Weaves IPO has witnessed robust demand, being subscribed 3 times by 12:00 PM, signaling strong investor interest.

Anchor Investors

Borana Weaves successfully raised ₹65.20 Crores from anchor investors at ₹216 per share. A total of 30,18,453 shares were allocated to anchor investors from the Qualified Institutional Buyers (QIB) quota, adding confidence to the IPO.

Company Financial Performance & Key Metrics

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

The financials reflect steady revenue and profitability growth, highlighting the company’s expanding operational scale and efficiency.

Valuation Metrics:

• Pre-issue EPS: ₹11.83

• Post-issue EPS: ₹8.85

• Pre-issue P/E ratio: 18.26x

• Post-issue P/E ratio: 24.40x

• ROCE FY24: 27.42%

• ROE FY24: 49.45%

• RoNW FY24: 49.77%

• Annualized EPS: ₹19.6

• Price-to-Earnings ratio: 11.02x

These key financial ratios suggest a fair valuation at the IPO price, supporting potential listing gains and long-term investor returns.

IPO Objectives and Utilization of Funds

Borana Weaves intends to utilize the IPO proceeds as follows:

1. ₹71.35 Crores for setting up a new manufacturing unit in Surat (Unit 4), enhancing production capacity of grey fabric.

2. ₹26.50 Crores to fund incremental working capital needs.

3. Remaining proceeds will be used for general corporate purposes.

This expansion will enable Borana Weaves to meet growing demand from diverse sectors and strengthen its market position.

Promoter Experience and Management

The company is led by promoters with deep industry experience:

• Mangilal Ambalal Borana with over 24 years in textiles.

• Ankur Mangilal Borana and Rajkumar Mangilal Borana, each with over 13 years of expertise.

Their leadership has been instrumental in driving Borana Weaves’ consistent growth and operational excellence.

How to Check Borana Weaves IPO Allotment Status

The allotment status will be published on May 23, 2025. Investors can check their allotment by:

• Visiting the registrar website.

• Selecting “Borana Weaves Limited IPO” from the IPO list.

• Entering the application number, PAN, or DP Client ID.

• Submitting the details to view allotment outcome.

Summary Recommendation

Borana Weaves Limited IPO offers investors a chance to participate in a rapidly growing textile company with robust financials, experienced promoters, and clear expansion plans. The strong Grey Market Premium and favorable valuation metrics indicate potential listing gains, making it a promising investment opportunity in the textile sector.

Investors looking for exposure to textile manufacturing and synthetic fabric production should consider applying to Borana Weaves IPO during the subscription period from May 20 to May 22, 2025.

The Upcoming IPOs in this week and coming weeks are Blue Water Logistics, Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries, Wagons Learning.

The Current active IPO are Victory Electric Vehicles International, Borana Weaves.

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