Borana Weaves IPO Date, GMP, Price, Allotment & Review

Borana Weaves IPO - Complete Overview 

Borana Weaves IPO, a Mainboard IPO, is a book-built issue of Rs. 144.89 Cr (0.67 Cr Shares) by Borana Weaves Limited, incorporated in 2020. It is an unbleached synthetic grey fabric manufacturer from Surat, Gujarat. 

The unbleached synthetic grey fabric of the company is generally extensively utilized as a base for further processing (such as dyeing and printing) by industries like fashion, traditional textiles, technical textiles, home textiles, interior design, etc.

The company also produces polyester textured yarn ("PTY Yarn"), produced by heat setting polyester oriented yarn ("POY Yarn"), our raw material for the manufacture of grey fabric.

There are three manufacturing units of Borana Weaves Limited in Surat, Gujarat, with textile manufacturing technologies for, among others, texturizing, warping, water jet looms, and textile folding.

As of Sep 30, 2024, the company had 700 water jet looms, 6 warping machines, 15 texturizing machines, and 10 folding machines operational at its three units.

This new IPO is to be launched on 20 May 2025, and its ‘initial public offering’ will end on 22 May 2025.

 

Borana Weaves IPO Details

This Mainline IPO comprises a wholly fresh issue of 67,08,000 shares. The Borana Weaves IPO date is from 20 May to 22 May, 2025. The Borana Weaves IPO price is between Rs. 205 to Rs. 216 for each Share.

If you want to apply for the IPO, click to open a Demat Account.

 

Company Financial

(Amount in Cr)

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Revenue from Operations Breakdown

(Source RHP)

The Objective of the Issue

• Proposing to fund the cost of setting up a new manufacturing Unit to increase its production capacity to produce grey fabric in Gujarat, India.

• Funding incremental working capital needs.

• To meet corporate objectives.

 

 

Peers of Borana Weaves

No listed peers of the company are mentioned in the RHP of the company.

 

Evaluation

The IPO price is between Rs. 205 to Rs. 216 per Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs. 11.83 from the last year, the resulting P/E ratio is 18.25x.

Considering the weighted EPS of Rs. 10.14 for the last three years, the P/E ratio is 21.30x.

IPO's Strengths   

• Strong position in the market for the production of polyester textured yarn ("PTY") and grey fabric.

• Investment in very efficient water jet looms with the capability to produce impeccable fabric in terms of quality as well as quantity; fully integrated manufacturing units set up in a strategic place.

• Providing strong financial and operating results.

• Skilled Promoters with execution skills.

 

IPO’s Weaknesses

• A large part of the company's top line is at the mercy of limited customers. The top 10 customers accounted for more than 98% of revenue in FY23. Hence, this business is vulnerable to high concentration risk. Losing one major customer could have an adverse effect on revenues and profitability.

• It has significant dependence on third-party material suppliers. Supply chain disruption, price rises, or the failure to get the materials timely manner will negatively affect the operations and the margins.

• The company possesses a limited operating history under its current form.

 

 

Borana Weaves IPO GMP Today

Borana Weaves IPO GMP is Rs. 2.55 on May 15, 2025, when this information was written.. With the price of Rs. 216, the Borana Weaves IPO listing price is Rs. 271 (estimated). 

Borana Weaves Limited IPO Timetable (Tentative)

With IPO allocation on May 23, refund initiation on May 26, and listing on May 27, 2025, the IPO dates are between May 20 and May 22.

IPO Other Details 

The IPO with a face value of Rs. 10 per Share, offers an IPO size of 67,08,000 Shares (Rs.  144.89 Cr) and it will be listed at BSE and NSE.

Borana Weaves IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (69 Shares) amounting to Rs. 14,904 and 13 Lots (897 Shares) for Rs. 1,93,752, respectively, while for HNI investors, the minimum Lot is 14 (966 Shares) amounting to Rs. 2,08,656.

IPO Reservation

Promoters and Management of Borana Weaves Ltd. 

• Mangilal Ambalal Borana

• Ankur Mangilal Borana

• Rajkumar Mangilal Borana

• Dhwani Ankur Borana

• Mangilal Ambalal Borana HUF

• Ankur Mangilal Borana HUF

• Rajkumar Mangilal HUF

• Borana Filaments Private Limited.

IPO Lead Managers

• Beeline Capital Advisors Pvt Ltd.

 

Dividend Policy

No dividend has been paid by the company in the last three FYs.

 

 

Conclusion

Borana Weaves IPO provides a chance to invest in a textile producer that is expanding with solid financials and up-to-date infrastructure. Its specialty in grey fabric and PTY yarn well positions it in a niche segment. However, there are risks associated with high consumer concentration and supplier dependence.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This IPO blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.