Borana Weaves Limited IPO detailed analysis and investment guide

Borana Weaves Ltd., a textile manufacturer based in Surat, is set to launch its Initial Public Offering (IPO) in May 2025. The company specializes in producing unbleached synthetic grey fabric, a key raw material widely used for further processing in dyeing, printing, fashion, traditional and technical textiles, home décor, and interior design industries. This fabric's versatility makes it a crucial part of the textile supply chain, complementing numerous unbleached fabric styles.

IPO Overview and Key Dates

The Borana Weaves IPO is a book-built issue amounting to ₹144.89 crore, consisting entirely of a fresh issue of 67.08 lakh shares. The subscription window opens on May 20, 2025, and closes on May 22, 2025. The IPO allotment is expected by May 23, 2025, with shares tentatively listing on the NSE and BSE on May 27, 2025.

The IPO's price band is set between ₹205 and ₹216 per equity share, valuing the company at a market capitalization of approximately ₹575.53 crore at the upper price band. The lot size for the IPO is 69 shares, requiring a minimum retail investment of about ₹14,904. High Net Worth Individuals (HNIs) must apply for a minimum of 14 lots (966 shares), amounting to ₹2,08,656.

Beeline Capital Advisors Private Limited is the book running lead manager for this IPO, while KFIN Technologies Limited acts as the registrar.

Company Financial Performance and Growth

Borana Weaves has demonstrated strong financial growth in recent years. The revenue from operations grew from ₹4,236.11 lakh in FY22 to ₹21,570.70 lakh in the period ended December 31, 2024. The company's EBITDA increased substantially from ₹520.16 lakh in FY22 to ₹4,939.71 lakh in FY24. Profit after tax showed similar growth, rising from ₹179.86 lakh in FY22 to ₹2,930.63 lakh in FY24.

Key financial ratios underscore the company’s strong fundamentals:

• Pre-issue EPS of ₹11.83 and post-issue EPS of ₹8.85 for FY24

• Pre-issue P/E ratio of 18.26x and post-issue P/E ratio of 24.40x

• Return on Capital Employed (ROCE) of 27.42%

• Return on Equity (ROE) of 49.45%

• Return on Net Worth (RoNW) of 49.77%

These metrics suggest the IPO is reasonably priced and attractive for investors seeking growth opportunities in the textile sector.

IPO Objectives and Utilization of Funds

Borana Weaves plans to utilize the net proceeds for the following purposes:

• ₹7,134.77 lakh for establishing a new manufacturing unit (Proposed Unit 4) to expand grey fabric production capacity in Surat, Gujarat

• ₹2,650 lakh to fund incremental working capital requirements

• Remaining amount for general corporate purposes

This expansion strategy highlights the company's focus on scaling operations to meet rising demand for synthetic grey fabric.

Grey Market Premium and Listing Gains

The Grey Market Premium (GMP) for Borana Weaves IPO is currently estimated at around ₹50, suggesting potential listing gains of approximately 23.14% above the IPO price band. However, it is important to note that the GMP is based on unregulated demand and supply and should be considered only as an educational reference.

How to Check Borana Weaves IPO Allotment Status

Investors can check their IPO allotment status online after May 23, 2025, through the registrar’s website:

• Visit the IPO allotment status page

• Select Borana Weaves Limited from the dropdown list

• Enter application number, PAN, or DP Client ID

• Submit the details to view allotment results

Promoters and Leadership

Borana Weaves is led by promoters with deep experience in textiles:

• Mangilal Ambalal Borana – Over 24 years of experience

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  The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Borana Weaves, Dar Credit and Capital,Belrise Industries, Wagons Learning.

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  The Current active IPO are Accretion Pharmaceuticals.

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  Ankur Mangilal Borana and Rajkumar Mangilal Borana – Each with over 13 years in the industry