The IPO of Borana Weaves made a splash on its debut, with heavy bidding from retail and HNI investors. Subscribed over 5 times on day one, the Borana Weaves IPO update has become a hot topic in Dalal Street. Despite market jitters, its strong GMP around ₹55 suggests investors are eyeing up to 25% listing gains. With IPO subscriptions open till May 22 and anchor support already in place, this IPO could offer short-term rewards—but with a few risks to note.
Borana Weaves IPO: Key Details Every Investor Must Know
The IPO opened for bidding on Tuesday, May 20, and will close on Thursday, May 22. The company is offering shares in a price band of ₹205-216, with a minimum lot size of 69 shares. Borana Weaves aims to raise ₹144.89 crore through this purely fresh issue of 67.08 lakh shares.
As of 2.05 PM IST on May 20, BSE data shows the IPO has received 1.87 crore bids against 36.89 lakh shares, translating into 5.08 times subscription. Here’s a quick segment-wise breakup:
- Retail Investors: 17.86 times subscribed
- HNI/NII Investors: 6.66 times subscribed
- QIBs: Only 2% subscribed so far
While the retail segment is buzzing with action, QIB interest appears muted, which might shift in the final hours.
Grey Market Premium Rises: 25% Gains on the Cards?
One of the most talked-about aspects is the grey market premium (GMP). Currently, the GMP is ₹55, up from ₹0 a few sessions ago and slightly down from its peak of ₹63. At the upper price band of ₹216, this translates into an expected listing price of ₹271—a 25.46% premium.
The rising GMP reflects investor enthusiasm despite cautious broader market sentiment. Many see this as a positive indicator of potential listing-day excitement.
Note: ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Borana Weaves IPO Key Dates
| IPO Open Date | May 20, 2025 |
| IPO Close Date | May 22, 2025 |
| Basis of Allotment | May 23, 2025 |
| Refunds | May 26, 2025 |
| Credit to Demat Account | May 26, 2025 |
| IPO Listing Date | May 27, 2025 (Listing Exchanges: NSE & BSE) |
Business Overview: What Does Borana Weaves Actually Do?
Founded in 2020 and based in Surat, Borana Weaves manufactures unbleached synthetic grey fabric. This material forms the base for dyeing and printing used in:
- Fashion and traditional wear
- Home décor and interior design
- Technical textiles and other industries
The company is planning to expand production capabilities by setting up a new unit in Surat. IPO proceeds will also go towards working capital and general corporate needs.
Analyst Views: A Play for Listing Gains, but Watch the Risks
Many analysts are optimistic about the IPO’s short-term prospects. Here’s what stands out:
🔎 Positives:
- High Return on Equity (RoE) and Return on Capital Employed (RoCE) in FY24
- Integrated manufacturing process
- Well-placed in a niche grey fabric market
⚠️ Risks:
- Heavy dependence on grey fabric sales
- Regional concentration in Gujarat
- Volatile raw material prices could affect margins
Valuation-wise, the IPO is priced at a P/E of 17.5x, which analysts say is fair given its financials and growth plans. Still, long-term investors are advised to wait and watch execution post-listing.
Also Read:
Borana Weaves IPO GMP Today: GMP Surges as Listing Date Nears; Retail Checklist Inside!
Belrise Industries IPO Opens on May 21: Latest GMP, Price Band, Financials & Key Details
Should You Apply for Borana Weaves IPO?
Given the strong early response and rising GMP, Borana Weaves IPO looks attractive for retail and HNI investors aiming for listing gains. However, due to low QIB participation and sector-specific risks, long-term investors might want to monitor its performance before diving in.
If you’re looking to ride the momentum, this IPO could be a solid short-term bet.
Book-Running Lead Manager: Beeline Capital Advisors
Registrar: KFin Technologies
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
