IPO Alert: Borana Weaves – Price, Dates, GMP & Key Insights

The Company has set a price band of ₹205–₹216 per share, with investors able to place bids in lots of 69 shares each. Minimum Investment; ₹14,145/-

Borana Weaves Ltd, a rapidly scaling manufacturer of synthetic grey fabric and polyester textured yarn, is set to debut on the Indian stock exchanges with its IPO bidding opening May 20, 2025 and closing on May 22, 2025. Backed by strong financials and sector growth tailwinds, the company aims to tap the capital markets to fuel its expansion ambitions.

IPO Snapshot

Business Overview

Borana Weaves is a textile manufacturer based in Surat, Gujarat, specialising in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries, including fashion, traditional textiles, technical textiles, home décor, and interior design. The versatility of grey fabric allows it to complement a wide range of unbleached fabrics across different styles, making it a valuable resource in the textile supply chain. In addition to grey fabric, the Company also manufactures polyester textured yarn (“PTY Yarn”), which is produced by heating polyester oriented yarn (“POY Yarn”), the raw material used in the production of grey fabric.

Financial Performance

Robust top-line and bottom-line growth over the last three fiscal years:

With a CAGR of 116% in revenue over 2 years, Borana Weaves has scaled up significantly since its inception.

GMP (Grey Market Premium)

As of the latest data, Borana Weaves is commanding a GMP of ₹55, indicating a potential listing gain of over 25%. While GMP is an unofficial indicator, it reflects bullish investor sentiment toward this IPO.

Peer comparison

Use of Proceeds

The company operates three facilities in Surat, with modern machinery, with the first facility commencing operations in 2020. The IPO proceeds will help launch Unit 4, further boosting production capacity and rising domestic and international demand.

Funds raised will go toward:

• ₹71.35 Cr – Setting up Unit 4 (approximately 73% of net proceeds)

• ₹26.50 Cr – Working capital

• Remainder – General corporate expenses

Industry Tailwinds

India's synthetic textile market is on an upward curve:

• Changing consumer preferences, growing apparel industry, rising disposable income and export potential.

• Favourable government initiatives: PLI schemes, export incentives

Borana Weaves is well-positioned to ride this wave with its backwards integration and lean cost model.

Disclaimer: This content is for educational purposes only; please conduct your own research and consult with a qualified investment advisor before making any investment decisions.