Borana Weaves Ltd., a Surat-based textile manufacturer, is launching its Initial Public Offering (IPO) with the subscription window opening from May 20, 2025, to May 22, 2025. The IPO is a Book Built Issue totaling ₹144.89 Crores, entirely composed of a Fresh Issue of 67.08 lakh equity shares.

The price band for the IPO is set at ₹205 to ₹216 per equity share, and the lot size is fixed at 69 shares. The minimum investment for retail investors amounts to ₹14,904, while High-Net-Worth Individuals (HNIs) must apply for at least 14 lots (₹2,08,656).

Company Overview

Borana Weaves Ltd. specializes in manufacturing unbleached synthetic grey fabric, which is widely used across industries such as fashion, technical textiles, home décor, and interior design. This fabric is a core material for dyeing and printing processes and is critical to the textile supply chain.

The company is promoted by Mangilal Ambalal Borana, who brings 24 years of experience, alongside Ankur Mangilal Borana and Rajkumar Mangilal Borana, each with over 13 years of industry experience. Their leadership has driven the company’s consistent growth trajectory in the past few fiscal years.

Financial Performance

Borana Weaves has reported impressive financials. The Revenue from operations stood at:

• ₹21,570.70 Lakh (Dec 31, 2024)

• ₹19,960.47 Lakh (FY 2024)

• ₹13,552.84 Lakh (FY 2023)

• ₹4,236.11 Lakh (FY 2022)

The EBITDA grew proportionally:

• ₹4,939.71 Lakh (Dec 31, 2024)

• ₹4,172.25 Lakh (FY 2024)

• ₹2,619.35 Lakh (FY 2023)

• ₹520.16 Lakh (FY 2022)

The Profit After Tax (PAT) also showed a steep upward curve:

• ₹2,930.63 Lakh (Dec 31, 2024)

• ₹2,358.64 Lakh (FY 2024)

• ₹1,630.09 Lakh (FY 2023)

• ₹179.86 Lakh (FY 2022)

Valuation Metrics

The company's Earnings Per Share (EPS) and Price to Earnings (P/E) Ratio are strong indicators of value:

• Pre-issue EPS: ₹11.83

• Post-issue EPS: ₹8.85

• Pre-issue P/E: 18.26x

• Post-issue P/E: 24.40x

• Annualised EPS (latest data): ₹19.6

• P/E Ratio (annualised): 11.02x

The company’s Return on Capital Employed (ROCE) is an impressive 27.42%, while Return on Equity (ROE) and Return on Net Worth (RoNW) are 49.45% and 49.77%, respectively. These metrics show strong profitability and capital efficiency, suggesting a fairly priced IPO.

IPO Timeline

• IPO Opens: May 20, 2025

• IPO Closes: May 22, 2025

• Allotment Finalisation: May 23, 2025

• Listing Date (Tentative): May 27, 2025

• Exchange: NSE and BSE

Grey Market Premium (GMP)

As of now, the Grey Market Premium (GMP) of Borana Weaves IPO is around ₹50, implying an estimated listing gain of 23.14%. While GMPs are unofficial and speculative, this level of interest indicates strong demand.

Note: Grey Market Premiums are not officially regulated and must not be solely relied upon for investment decisions. They are indicative of market sentiment but not definitive predictors of listing performance.

IPO Management

• Book Running Lead Manager: Beeline Capital Advisors Private Limited

• Registrar: KFIN Technologies Limited

Investment Recommendation

Considering the consistent revenue growth, strong bottom-line performance, high return ratios, and moderate valuations, this IPO presents an attractive opportunity for listing gains. The GMP of ₹50 reflects high investor interest and market confidence.

We recommend investors to APPLY for the Borana Weaves IPO specifically for listing gains

The Upcoming IPOs in this week and coming weeks are Scoda Tubes,Neptune Petrochemicals, Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning.

The Current active IPO are Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries.

The Closed IPOs are Borana Weaves.