Borana Weaves IPO Receives 8.54 Times Subscription Applications on Day One

Mumbai, 21 May 2025 — Textile manufacturer Borana Weaves Limited has received a robust response from investors on the first day of its Initial Public Offering (IPO), with subscriptions reaching 8.54 times the number of shares on offer. The IPO, which opened on May 20, 2025, will remain open for bidding until May 22, 2025.

The IPO is a book-built issue consisting solely of a fresh issuance of 67.08 lakh equity shares, with no offer-for-sale component. The company aims to raise ₹144.89 crore, with shares priced between ₹205 and ₹216 apiece. The minimum lot size for bidding is 69 shares.

Anchor Investment and Allotment

Ahead of the IPO launch, Borana Weaves successfully raised ₹65.2 crore on May 19, 2025, from 11 anchor investors, including names such as Pink Oal Global Fund, Innovative Vision Fund, Aarth EIF Growth Fund, and Sunrise Investment Trust. A total of 30,18,543 equity shares were allotted to anchor investors at the upper price band of ₹216 per share.

Strong Retail and NII Participation

According to subscription data from the Bombay Stock Exchange (BSE), retail investors showed particularly strong interest, subscribing to their quota 25 times over. Against the 6.70 lakh shares reserved for this segment, bids were received for more than 1.67 crore equity shares.

Non-Institutional Investors (NIIs) also displayed keen participation, subscribing 11.55 times, with over 1.16 crore shares bid against a quota of 10.06 lakh shares.

The response from Qualified Institutional Buyers (QIBs), while more measured, stood at a solid 1.55 times subscription. The QIB portion saw bids for 31.10 lakh shares compared to the 20.12 lakh shares on offer.

Grey Market Premium and Listing Outlook

As of May 20, the grey market premium (GMP) for Borana Weaves IPO stood at ₹60 per share. With the upper price band fixed at ₹216, the shares are expected to list around ₹276, reflecting a 27.78% premium, according to data from Investor Gain.

However, GMP figures are subject to volatility and should be interpreted as a sentiment indicator rather than a definitive predictor of listing performance. On May 20, the GMP ranged between ₹0 and ₹63, with a recent trading premium of ₹55, pointing to a potential listing price near ₹271 per share.

Use of Proceeds

Borana Weaves intends to channel the IPO proceeds towards establishing a new manufacturing facility in Surat, Gujarat, to boost the production capacity of grey fabric—a key input for industries such as fashion, home décor, and traditional textiles. Additional funds will support working capital requirements and general corporate purposes.

Company Background

Founded in 2020, Borana Weaves is engaged in the production of unbleached synthetic grey fabric, which serves as a foundational material in the textile value chain. The company caters to a wide range of sectors, including interior design and fashion manufacturing.

IPO Management

The IPO is managed by Beeline Capital Advisors as the book-running lead manager, while KF in Technologies is acting as the registrar to the issue. The listing of Borana Weaves shares on the stock exchanges is tentatively scheduled for May 27, 2025.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Please read the offer documents carefully before investing. Investments are subject to market risks and other risks. There is no guarantee of the actual returns that will be given.