Borana Weaves Ltd., a textile manufacturer based in Surat, has launched its IPO with a fresh issue of ₹144.89 Crores, offering 67.08 lakh shares. The IPO subscription period opens on May 20, 2025, and closes on May 22, 2025. The allotment is expected to be finalized on May 23, 2025, with the shares listed on the NSE and BSE on or about May 27, 2025.

The company specializes in producing unbleached synthetic grey fabric, a versatile base material extensively used for further processing like dyeing and printing in industries such as fashion, traditional textiles, technical textiles, home décor, and interior design. This fabric's adaptability across various styles makes Borana Weaves a vital player in the textile supply chain.

The IPO price band is set between ₹205 and ₹216 per equity share, with a lot size of 69 shares. Retail investors need a minimum investment of around ₹14,904, while High-Net-Worth Individuals (HNIs) must invest a minimum of 14 lots (966 shares), amounting to ₹2,08,656.

Promoters and leadership bring extensive industry expertise: Mangilal Ambalal Borana has over 24 years of experience, while Ankur Mangilal Borana and Rajkumar Mangilal Borana each have over 13 years in textiles, contributing to the company’s steady growth.

Financially, Borana Weaves has demonstrated consistent progress:

• Revenues from operations have increased significantly, reaching ₹21,570.70 Lakh for FY24, up from ₹19,960.47 Lakh in FY23 and ₹13,552.84 Lakh in FY22.

• EBITDA improved to ₹4,939.71 Lakh in FY24, showing strong operational efficiency.

• Profit After Tax (PAT) grew to ₹2,930.63 Lakh in FY24, indicating healthy profitability.

• Key metrics for FY24 include a pre-issue EPS of ₹11.83 and a post-issue EPS of ₹8.85.

• Pre-issue P/E ratio is 18.26x, with a post-issue P/E ratio of 24.40x, fairly valued compared to industry norms.

• The company also boasts a Return on Capital Employed (ROCE) of 27.42%, Return on Equity (ROE) of 49.45%, and Return on Net Worth (RoNW) of 49.77%, highlighting efficient use of capital and strong shareholder returns.

• The annualized EPS stands at ₹19.6 with a P/E ratio of 11.02x, indicating robust earnings potential.

The Grey Market Premium (GMP) stands at ₹50, suggesting an expected listing gain of approximately 23.14%. Although GMP trading is informal and not recommended for price discovery, it reflects positive market sentiment toward this IPO.

Given the company’s solid financial performance, strong management background, and attractive pricing, investors are recommended to apply for the Borana Weaves IPO to benefit from the likely listing gains.

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

The Closed IPOs are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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