About the Company
 

Borana Weaves Ltd., established in 2020 and based in Surat, Gujarat, specializes in manufacturing unbleached synthetic grey fabric. This fabric serves as a foundational material for further processing in industries like fashion, home décor, and technical textiles. The company has invested in advanced water jet loom technology to enhance production efficiency and product quality.
 

IPO Details
 

1. Issue Size: ₹144.89 crore (entirely fresh issue of 67.08 lakh equity shares)
2. Price Band: ₹205 to ₹216 per share
3. Lot Size: 69 shares (minimum investment of ₹14,904)
4. IPO Opened: May 20, 2025
5. IPO Closed: May 22, 2025
6. Listing Date: Expected on May 27, 2025, on BSE and NSE
7. Lead Manager: Beeline Capital Advisors Pvt Ltd
8. Registrar: Kfin Technologies Ltd

Subscription Status (as on 22 May 2025)
 

1. The IPO witnessed overwhelming demand, being subscribed 148.77 times overall:
2. Retail Investors: 200.50 times
3. Non-Institutional Investors (NII): 237.41 times
4. Qualified Institutional Buyers (QIBs): 87.21 times

Grey Market Premium (GMP)

As of May 22, 2025, the GMP for Borana Weaves shares was approximately ₹60, suggesting a potential listing price of around ₹276, which is a 27.78% premium over the upper end of the price band .

USES OF FUNDS

1. The funds raised from the IPO are planned to be used for:
2. Establishing a new manufacturing unit in Surat to expand production capacity.
3. Meeting incremental working capital requirements.
4. General corporate purposes.

Financial Performance Borana Weaves has demonstrated impressive growth:
 

1. Revenue CAGR (FY22–FY24): 116.8%
2. EBITDA CAGR (FY22–FY24): 182.1%
3. PAT CAGR (FY22–FY24): 262.1%
4. Return on Equity (FY24): 49.5%
5. Return on Capital Employed (FY24): 24.3%
6. These figures reflect the company's strong operational performance and efficient capital utilization .

Analyst Recommendations
 

1. Market analysts have given a 'Subscribe' rating to the IPO, citing:
2. Strong growth trajectory and financial performance.
3. Fair valuation with a P/E of 24.4x on FY24 earnings, compared to the industry average of 35x.
4. Expansion plans into high-margin technical textiles, expected to enhance profitability .
5. Note: Investors should consider their investment objectives and consult financial advisors before making investment decisions.

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