Borana Weaves Limited IPO to Open on May 20th 2025

Mumbai, May 16, 2025 — Borana Weaves Limited’s IPO will open on May 20th. The company is a manufacturer specialising in unbleached synthetic grey fabric based in Surat, Gujarat. The company aims to raise ₹144.89 crore through a fresh issue of 67.08 lakh equity shares. The IPO subscription will close on May 22, 2025, with shares proposed to be listed on the BSE and NSE. The tentative listing date is set for May 27, 2025, subject to regulatory approvals and successful allotment.

IPO Price Band and Lot Size

Borana Weaves has fixed the IPO price band between ₹205 and ₹216 per share. Retail investors will need to invest a minimum of ₹14,145 for one lot consisting of 69 shares. Qualified Non-Institutional Investors (sNII) must bid for at least 14 lots (966 shares), amounting to around ₹2.08 lakh, while Big Non-Institutional Investors (bNII) require a minimum bid of 68 lots (4,692 shares), equivalent to approximately ₹10.13 lakh.

IPO Timeline and Important Dates

The subscription window for the IPO opens on Tuesday, May 20, and closes on Thursday, May 22, 2025. The allotment is expected to be finalised on Friday, May 23, followed by refunds and credit of shares to demat accounts on Monday, May 26. Borana Weaves is planning a listing on both exchanges on Tuesday, May 27, 2025.

Promoters and Shareholding Structure

The company is promoted by Mangilal Ambalal Borana, Ankur Mangilal Borana, Rajkumar Mangilal Borana, and their respective family trusts, along with Borana Filaments Private Limited. Prior to the IPO, promoters held 87.19% of the company’s equity. Post-IPO shareholding details will reflect the fresh equity issuance and equity dilution.

Company Overview

Founded in 2020, Borana Weaves Limited manufactures unbleached synthetic grey fabric, widely used as a foundational material for subsequent processing such as dyeing, printing, and finishing in industries like fashion, home décor, technical textiles, and interior design. The company also produces polyester textured yarn (PTY Yarn), an important input for fabric manufacturing.

Borana Weaves operates three manufacturing facilities in Surat, Gujarat, equipped with advanced textile technologies including texturizing, warping, water jet looms, and folding machines. As of September 30, 2024, the company operates 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines, demonstrating robust production capabilities.

Financial Performance and Key Metrics

Borana Weaves has exhibited consistent financial growth over recent years. As of December 31, 2024, the company reported assets worth ₹149.67 crore, revenue of ₹215.71 crore, and a profit after tax of ₹29.31 crore. Net worth increased to ₹76.55 crore, supported by healthy reserves and surplus of ₹56.87 crore. Borrowings stand at ₹54.03 crore.

Key financial ratios as of March 31, 2024, include a Return on Equity (ROE) of 49.45%, Return on Capital Employed (ROCE) at 27.42%, and a Profit After Tax (PAT) margin of 11.85%. The Price-to-Book ratio stands at 9.09, reflecting investor valuation. The IPO market capitalisation is approximately ₹575.54 crore.

Use of Proceeds

Borana Weaves intends to utilise the net proceeds primarily to expand its production capacity by financing the establishment of a new manufacturing unit in Surat, estimated at ₹71.35 crore. Additional funds will be allocated to meet incremental working capital needs and for general corporate purposes.

Lead Manager and Registrar

Beeline Capital Advisors Pvt Ltd serves as the book-running lead manager for the IPO. Kfin Technologies Limited is appointed as the registrar, ensuring efficient investor services and allotment processing.

Investors and interested parties are advised to consult the Borana Weaves IPO Red Herring Prospectus (RHP) filed with SEBI for comprehensive details regarding the offer.

Disclaimer: This content is for informational purposes only and does not constitute any investment advice or recommendation. Prospective investors should carefully read the offer documents and understand the associated risks before investing. Market conditions and company performance may affect investment outcomes.