Borana Weaves Limited launches its Initial Public Offering (IPO) to raise funds. The IPO comprises a fresh issue of 67.08 lakh equity shares. The total offer size aggregates up to Rs. 144.89 crore. The IPO opens for bids on May 20 and will end on May 22, 2025. The shares will be listed on NSE SME after the IPO closes. Here’s everything you need to know.
GMP of Borana Weaves IPO
The shares of Borana Weaves Limited’s price in the grey market were trading at a 26.39 percent premium as of May 21st, 2025. The shares in the Grey Market traded at Rs 273. This gives it a premium of Rs. 57 per share over the cap price of Rs. 216.
Overview of Borana Weaves
Borana Weaves Limited was established in 2020 and is a leading manufacturer of unbleached synthetic grey fabric in Surat, Gujarat. Its grey fabric serves as a versatile base for dyeing and printing, catering to industries like fashion, home decor, and technical textiles. The company also produces polyester textured yarn (PTY) by processing polyester oriented yarn (POY), a key raw material for its grey fabric.
Borana Weaves Limited operates three advanced manufacturing units in Surat and employs cutting-edge textile technologies, including 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines as of September 30, 2024. This robust infrastructure supports high-quality production for domestic and international markets, driving the company’s growth.
Promoters of Borana Weaves
The promoters of Borana Weaves Limited are Mangilal Ambalal Borana, Ankur Mangilal Borana, Rajkumar Mangilal Borana, and Dhwani Ankur Borana. Other promoters include their family groups, Mangilal Ambalal Borana HUF, Ankur Mangilal Borana HUF, Rajkumar Mangilal Borana HUF, and Borana Filaments Private Limited. These promoters help guide the company with their knowledge and experience in the textile industry.
Borana Weaves Selling Shareholders
The IPO includes no offer for sale (OFS) component. It consists solely of a fresh issue of equity shares. Promoters and other shareholders are not offloading their holdings. This structure aims to raise capital for company growth.
Lead Managers of Borana Weaves
Beeline Capital Advisors Private Limited serves as the book-running lead manager. KFin Technologies Limited is the registrar handling allotment and investor services
Objectives of the IPO Offer
The company will use the IPO proceeds to set up a new manufacturing unit. The funds will also be used for working capital requirements and general corporate purposes. A portion will be invested in the development of Unit 4 to expand operational capacity.
Financial Analysis of Borana Weaves
Borana Weaves Limited’s revenue has increased from Rs. 135.53 crore in FY23 to Rs. 199.60 crore in FY24, which represents a growth of 47.27 percent. The net profit has increased by 44.72 percent from Rs. 16.30 crore in FY23 to Rs. 23.59 crore in FY24.
Borana Weaves Limited’s revenue and net profit have grown at a CAGR of 117.07 percent and 262.02 percent, respectively, over the last two years. In the 9M FY25, the company earned revenue of Rs. 215.71 crore and a net profit of Rs. 29.31 crore.
Borana Weaves Strengths and Weaknesses
Strengths:
- Advanced manufacturing facilities ensure high-quality textile production.
- Strategic location in Surat, a textile hub, enhances operational efficiency.
- Experienced promoters provide strong leadership and industry knowledge.
- Focusing on synthetic garments taps into growing market demand.
- Robust compliance with SEBI and Companies Act regulations.
Weaknesses:
- Heavy reliance on the textile sector increases market risk exposure.
- Limited geographical diversification compared to larger competitors.
- Absence of detailed financial data in the excerpt limits analysis.
- Potential vulnerability to raw material price fluctuations.
- The first public issue lacks historical market trading performance.
Conclusion
Borana Weaves Limited’s IPO presents an opportunity in the growing textile manufacturing sector. With expansion plans and experienced promoters, the company targets steady market penetration. Investors should consider industry volatility and company scale before subscribing.
Written By – Nikhil Naik
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