India’s textile market is seeing fresh action as Borana Weaves opens its ₹144.89 crore IPO on May 20, 2025. With a pure fresh issue and no offer-for-sale (OFS), this IPO is structured for growth. Based in Surat, the company is a rising player in synthetic grey fabric and polyester yarn production, and its IPO could open doors for retail and institutional investors alike. Here’s a detailed look into Borana Weaves IPO details, pricing, and possible pros and cons to help you make an informed call.
IPO Structure, Price Band & Lot Size – What You Need to Know?
The IPO price band is fixed at ₹205 to ₹216 per share with a face value of ₹10. Investors can bid in lots of 69 shares, translating to a minimum investment of ₹14,904. The maximum retail application can go up to 13 lots or ₹1,93,752.
The offer comprises a fresh issue of 67.08 lakh equity shares. There is no OFS, meaning all funds raised will go towards growth initiatives. The share allocation splits are:
- 75% for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 10% for Retail Investors
Anchor bidding starts on May 19, public subscription opens May 20–22, and shares list on May 27 on both BSE and NSE.
What Does Borana Weaves Do?
Headquartered in Surat, Gujarat, Borana Weaves manufactures unbleached synthetic grey fabric, a foundational textile used in further processing like dyeing, printing, and finishing. It also produces polyester textured yarn (PTY)—essential for making fabric.
The company owns three state-of-the-art manufacturing facilities, featuring 700 water jet looms, 15 texturising machines, and 6 warping machines. With no direct listed peers in India or globally, Borana Weaves enjoys a niche market position.
Financials & Valuation Snapshot
Borana Weaves’ financial growth is impressive.
- FY22 revenue: ₹42.30 crore
- FY23 revenue: ₹135.40 crore
- FY24 revenue: ₹199.10 crore
The P/E ratio stands between 17.33x–18.26x based on diluted FY24 EPS. Given its growth momentum and niche focus, the valuation appears reasonable and could attract long-term investors looking for value in underpenetrated segments.
Pros and Cons of Investing in Borana Weaves IPO
✅ Pros
- Strong Revenue Growth: 5x rise in revenue over three years shows robust demand and execution.
- No OFS: Entire IPO proceeds are earmarked for expansion and working capital, supporting future growth.
- First-Mover Advantage: No listed direct competitors in this space could help it gain attention on listing.
- Operational Strength: Advanced manufacturing capacity and vertical integration offer cost and production advantages.
- Institutional Backing: With 75% allocation to QIBs, there’s likely strong institutional interest.
❌ Cons
- Limited Retail Allocation: Only 10% reserved for retail investors, reducing the allotment chances.
- Niche Market: Lack of listed competitors makes peer comparison difficult for retail investors.
- IPO Pricing: Although valuations are modest, the cap price implies a 21.6x multiple, which may seem expensive to some.
Allotment Timeline & Listing Details
- Anchor Allotment: May 19, 2025
- IPO Window: May 20 to May 22
- Allotment Finalisation: May 23
- Refunds/ Demat Credit: May 26
- Listing Date: May 27 on BSE and NSE
Be sure to approve your UPI mandate before the cut-off time to avoid disqualification.
Conclusion
Borana Weaves presents a solid opportunity in India’s expanding textile sector. With focused use of proceeds, no OFS, and impressive revenue figures, this IPO may appeal to investors seeking long-term growth in a niche but essential space. However, limited retail allocation and absence of listed peers may pose some concerns.
If you’re looking for an industrial growth story with real numbers to back it up, this IPO is worth a close look before May 22.
Also Read: Cochin Shipyard Q4 Results: Profit Up 11%, Dividend Announced, Stock Soars Over 25%
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.
