Borana Weaves IPO: Last Chance to Invest on May 22, 2025 – Complete Details
The Borana Weaves IPO, an Initial Public Offering by Borana Weaves Limited, closes today, May 22, 2025. Launched on May 20, 2025, this IPO has garnered massive interest, with a subscription rate of 29.67 times overall and an impressive 78.08 times in the retail category. If you’re considering investing in the Borana Weaves IPO, this is your final opportunity to participate. Let’s dive into the key details, financials, and investment potential of this IPO to help you make an informed decision.
Key Details of Borana Weaves IPO
- IPO Open Date: May 20, 2025
- IPO Close Date: May 22, 2025
- Listing Date: May 27, 2025 (tentative, on BSE and NSE)
- Issue Size: ₹144.89 crore
- Price Band: ₹205 to ₹216 per share
- Lot Size: Minimum 69 shares (₹14,904 at the upper price band)
- Maximum Lot: Retail investors can apply for 13 lots (897 shares), requiring ₹1,93,752 at the upper price band.
The Borana Weaves IPO consists of 67.08 lakh fresh equity shares, with no Offer for Sale (OFS) component. This means the entire proceeds will be used for business expansion, making it an attractive proposition for investors seeking growth-oriented opportunities.
Share Allocation
The Borana Weaves IPO has allocated shares as follows:
- Qualified Institutional Buyers (QIB): 75%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 10%
Additionally, the company raised ₹65.2 crore from 11 anchor investors on May 19, 2025, reflecting strong institutional confidence in the Borana Weaves IPO.
About Borana Weaves Limited
Established in 2020, Borana Weaves Limited is a leading textile company based in Surat, Gujarat. It specializes in manufacturing unbleached synthetic grey fabric, widely used in industries such as fashion, traditional textiles, technical textiles, home decor, and interior design. The company also produces Polyester Textured Yarn (PTY), derived from Polyester Oriented Yarn (POY), which serves as a raw material for grey fabric production.
With three state-of-the-art manufacturing units in Surat, equipped with 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines, Borana Weaves is well-positioned in the textile sector. The Borana Weaves IPO funds will support the establishment of a new manufacturing unit (Unit 4) in Surat and meet working capital needs.
Use of IPO Proceeds
The funds raised through the Borana Weaves IPO will be utilized as follows:
- New Manufacturing Unit: ₹71.35 crore for expanding grey fabric production capacity in Surat.
- Working Capital: ₹26.5 crore to support operational needs.
- General Corporate Purposes: Remaining funds.
Financial Performance
Borana Weaves Limited has shown remarkable financial growth:
- FY 2022: Revenue of ₹42.33 crore
- FY 2023: Revenue of ₹135.40 crore
- FY 2024: Revenue of ₹199.60 crore
- 9 Months Ended December 2024: Revenue of ₹211.62 crore
The company’s net profit in FY 2024 stood at ₹23.59 crore, up from ₹16.30 crore in FY 2023. With an ROE of 49.45% and ROCE of 24.3%, Borana Weaves demonstrates strong profitability and efficiency, making the Borana Weaves IPO a compelling investment option.
Grey Market Premium (GMP)
As of May 21, 2025, the Borana Weaves IPO has a Grey Market Premium (GMP) of ₹52-₹56. This suggests a potential listing price of ₹268-₹272, offering a 24-26% premium over the upper price band of ₹216. This strong GMP indicates robust investor interest and potential listing gains.
Should You Invest in Borana Weaves IPO?
Several brokerage firms have rated the Borana Weaves IPO positively:
- Anand Rathi and SMIFS: “Subscribe” for long-term gains.
- Arihant Capital Markets: “Neutral” rating.
Reasons to Invest:
- Strong Growth: The company has achieved a 116.84% CAGR in revenue over the past three years.
- High Margins: FY 2024 EBITDA margin of 21%, with strong ROE and ROCE.
- Expansion Plans: The new manufacturing unit will boost production capacity by 48%.
- Industry Demand: India’s synthetic textile market is projected to reach 6.7 million tonnes by 2025.
Risks:
- Regional Dependency: 98% of revenue comes from Gujarat, posing a geographic risk.
- Revenue Concentration: 84.24% of income from grey fabric sales.
- Limited Operating History: The company was established in 2020.
How to Apply for Borana Weaves IPO
Investors can apply for the Borana Weaves IPO through:
1. Online (UPI/ASBA):
- Log in to your demat account via a stockbroker
- Navigate to the IPO section, select Borana Weaves IPO, and enter your UPI ID, share quantity, and price band.
2. Offline:
- Obtain the IPO application form from your broker, fill it out, and submit it.
Check Allotment Status
To check your application status Click Here.
Is the Borana Weaves IPO an attractive opportunity for investors?
The Borana Weaves IPO is an attractive opportunity for investors seeking exposure to the growing textile sector. With strong financials, ambitious expansion plans, and a high GMP, it offers potential for both short-term listing gains and long-term growth. However, consider risks like regional dependency and limited operating history before investing. Retail investors can participate with a minimum investment of ₹14,904. Consult a financial advisor to align this investment with your goals.
Are you planning to invest in the Borana Weaves IPO? Share your thoughts and questions in the comments below!
Note: This article is for informational purposes only and not investment advice. Consult a financial advisor before investing.
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