Borana Weaves IPO will open on May 20, 2025, and close on May 22, 2025. Incorporated in 2020, Borana Weaves Limited operates in the textile industry and specializes in the manufacturing of unbleached synthetic grey fabric. This fabric is used in various industries such as fashion, technical textiles, home decor, and interior design. In this blog, we’ll discuss all the important Borana Weaves IPO details, including price band, lot size, financials, and peer analysis.
Borana Weaves IPO Date
The key pointers for the Borana Weaves IPO dates are:
- Bidding Opening Date: May 20, 2025
- Bidding Closing Date: May 22, 2025
- Basis of Allotment Date: May 23, 2025
- Initiation of Refunds (in case of less or no allotment): May 26, 2025
- Shares Credited to Your Demat Account: May 26, 2025
- IPO Listing Date: May 27, 2025
- Listing on Exchange: BSE and NSE
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Borana Weaves: IPO Issue Size
Borana Weaves Limited IPO valuation at the post-issue market capitalisation came at ₹575.54 crores.
Here are the important Borana Weaves IPO details:
- Borana Weaves IPO Price Band: ₹205 – ₹216 per share
- Face Value: ₹10 per share
- Lot Size: 69 Shares
- Issue Size and Amount: 67,08,000 shares (amounting to ₹144.89 crores)
- Fresh Issue Size and Amount: 67,08,000 shares (amounting to ₹144.89 crores)
Borana Weaves IPO Proceeds Usage
Borana Weaves IPO proceeds will be used for the following purposes:
- Capital Expenditure: To finance the cost of setting up a new manufacturing unit in Surat (Gujarat) for producing grey fabric.
- Working Capital: To fulfill the extra working capital requirements of day-to-day operations.
- Others: For other corporate requirements.
Borana Weaves IPO Reservations
Borana Weaves IPO reservations to different investors are:
- For QIBs: Not less than 75% of the net issue
- For NIIs: Not more than 15% of the net issue
- For Retail Investors: Not more than 10% of the net issue
- Borana Weaves IPO Shareholder Quota: There is no shareholder quota provision for this IPO.
Borana Weaves IPO Lot Size
Borana Weaves IPO lot size is 69 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply for in this IPO are:
| Applicant Type | Lot Size | Shares | Amount (in ₹) |
|---|---|---|---|
| Retail (Min) | 1 | 69 | ₹14,904 |
| Retail (Max) | 13 | 897 | ₹1,93,752 |
| S-HNI (Min) | 14 | 966 | ₹2,08,656 |
| S-HNI (Max) | 67 | 4,623 | ₹9,98,568 |
| B-HNI (Min) | 68 | 4,692 | ₹10,13,472 |
Borana Weaves IPO Details: Promoter Holding
Mangilal Ambalal Borana, Rajkumar Mangilal Borana, and Dhwani Ankur Borana are some of the promoters of Borana Weaves Limited. The pre-IPO shareholding of the promoters in this company is 87.19% as of December 31, 2024.
Borana Weaves Limited IPO: Company Overview
Borana Weaves Limited manufactures unbleached synthetic grey fabric and PTY Yarn (polyester textured yarn), which are important resources in the textile supply chain. Currently, the company has 3 manufacturing units in Surat equipped for texturizing, warping, water jet looms, and textile folding. In total, it has 15 texturizing machines, 700 water jet looms, 6 warping machines, and 10 folding machines. The company’s operational efficiency is healthy, with average capacity utilization at 79.62% as of December 31, 2024.
The Indian market is witnessing rising demand for synthetic textiles due to their affordability and durability features. The demand for polyester is expected to grow from the current 4 MT to 6.7 MT in 2025. Borana Weaves is set to benefit from this growing demand for synthetic fibres, which are used in different industries such as fashion, home decor, and sportswear.
Borana Weaves IPO: Financial Performance
Borana Weaves Limited’s key financials for different periods are as follows:
| Particulars (in ₹ Cr) | Mar 31, 2024 | Mar 31, 2023 | YoY Change |
|---|---|---|---|
| Revenue | 199.6 | 135.53 | 47.3% |
| Net Profit | 23.59 | 16.3 | 44.7% |
| EBITDA | 41.17 | 26.06 | 58.0% |
| Net Worth | 47.39 | 24.11 | 96.6% |
| Total Borrowing | 69.10 | 38.89 | 77.7% |
| Assets | 137.05 | 74.98 | 82.8% |
| ROCE (%) | 27.42% | 34.93% | -7.5% |
| ROE (%) | 49.45% | 67.61% | -18.2% |
- In FY24, Borana Weaves Limited revenue rose by 47% to ₹199.6 crores, while net profit also grew by 44% to ₹23.59 crores.
- The EBITDA increased by 58% to ₹41.17 crores, highlighting its improving operational profitability.
- The total borrowing jumped by 77.7% to ₹69.10 crores, but assets also grew at the same time by 82.8% to ₹137.05 crores in the financial year 2024-25.
- ROCE and ROE both fell to 27.42% and 49.45%, respectively, but still remained at a healthy level.
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Borana Weaves IPO: Peer Analysis
Here are the key ratios of Borana Weaves Limited in comparison to its peers:
| Company (FY24) | EBITDA Margin (%) | PAT Margin (%) |
|---|---|---|
| Borana Weaves | 21% | 12% |
| Jindal Worldwide Ltd | 8% | 4% |
| Vardhman Textiles Ltd | 14% | 7% |
| Arvind Ltd | 11% | 4% |
| KPR Mill Ltd | 20% | 14% |
| Gokaldas Exports Ltd | 12% | 6% |
| Shahlon Group | 9% | 1% |
- Borana Weaves Limited has the highest EBITDA margin in the industry at 21%, highlighting its strong operational efficiency and ability to manage costs.
- Borana Weaves’ PAT Margin is second-best (12%), directly benefiting from its operational excellence and market positioning.
Borana Weaves IPO Risk Factors
Borana Weaves IPO GMP is ₹63 as of May 16, 2024 (10:28 AM). It is expected to list at a 29.17% gain at a price of ₹279. However, GMP is not a safe or assured criterion to bid for an IPO.
Borana Weaves Limited is exposed to various risk factors that can eventually affect its business and investors’ perception:
- Any delay or failure in getting the required licenses to commence operations of the fourth manufacturing unit can directly affect the business.
- More than 98% of revenue is concentrated towards the Gujarat-based clients, and cancellation of orders can erode the financial condition.
- Around 90% of the suppliers of polyester oriented yarn (POY) are based in South Gujarat, which exposes the company to geographical risks.
- Over 82% of the revenue is generated from the sales of grey fabric, and a reduction in sales can impact the financial performance.
- The company’s employee benefit expenses are quite high, which can reduce its profit margins in the long run.
Borana Weaves IPO Details: Contact Details
Here are details of the registered address and registrar name of Borana Weaves Limited:
- Registered Office Address: Plot No AA/34, B 16/16, Hojiwala Industrial Estate, SUSML, Sachin, Surat, Gujarat, India – 394230
- Email: info@boranagroup.in
- Company Website: https://www.boranagroup.in/
- Registrar: KFIN Technologies Limited
- Book Running Lead Manager: Beeline Capital Advisors Private Limited
For all the insights on Borana Weaves IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening free demat account now.
Frequently Asked Questions – FAQs
1. Who is the CEO of Borana Weaves Limited?
Mr. Ankur Mangilal Borana is the CEO and executive director of Borana Weaves, who has more than 13 years of experience in the textile industry.
2. What is the revenue of Borana Weaves Limited?
Borana Weaves has made a revenue of ₹215.71 crores in the nine months of FY25.
3. What is the listing date of Borana Weaves IPO?
Borana Weaves IPO (a mainboard IPO) is going to list on the BSE and NSE on May 27, 2025 (Tuesday).
References:
https://beelinemb.com/wp-content/uploads/2025/05/Borana-Weaves-Limited_RHP.pdf
https://www.investorgain.com/gmp/borana-weaves-ipo-gmp/1249/
Author: All Content is verified by SMC Global Securities.
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