Borana Weaves IPO Price Band Fixed at ₹205-216; Subscription Starts May 20

Market Performance and IPO Overview

Borana Weaves has announced its IPO price band between ₹205 and ₹216 per share, with a face value of ₹10 each. The public subscription window opens on May 20 and closes on May 22, 2025.

• Anchor investor allocation is scheduled for May 19, 2025.
• The IPO valuation translates to a price-to-earnings (P/E) ratio of 17.33x at the floor price and 18.26x at the cap price based on fiscal 2024 earnings.
• Investors may apply in a lot size of 69 equity shares, with additional applications allowed in multiples thereafter.

Borana Weaves has reserved:

• At least 75% of shares for Qualified Institutional Buyers (QIBs),
• Up to 15% for Non-Institutional Investors (NIIs),
• Up to 10% for Retail Investors.

The basis of allotment will be finalized on May 23, refunds processed by May 26, and the shares are scheduled to be listed on the BSE and NSE on May 27, 2025.

Main News: Borana Weaves IPO Key Highlights

Borana Weaves Limited is set to raise around ₹144.89 crore through this IPO, comprising a fresh issue of 67.08 lakh equity shares. There is no offer-for-sale (OFS) component in this issue.

The company plans to use the IPO proceeds for:

• Establishing a new manufacturing facility to boost grey fabric production capacity in Surat,
• Supplementing working capital,
• Meeting general corporate expenses.

Company Details: Borana Weaves at a Glance

Borana Weaves operates from Surat, Gujarat, specializing in producing unbleached synthetic grey fabric. This fabric is essential as a base material for further processing, such as dyeing and printing, catering to industries like fashion, traditional textiles, technical textiles, home decor, and interior design.

Key production details include:

• Manufacturing polyester textured yarn (PTY Yarn) by processing polyester oriented yarn (POY Yarn),
• Three manufacturing units in Surat operate and are equipped with advanced textile technologies.

As of September 30, 2024, Borana Weaves had the following machinery:

• 15 texturising machines,
• 6 warping machines,
• 700 water jet looms,
• 10 folding machines.

Notably, there are no listed industry competitors within India or internationally, which makes direct financial comparison difficult.

Financial Performance Summary

Borana Weaves has demonstrated strong growth over the past three fiscal years:

• Revenue surged from ₹42.30 crore in FY 2022 to ₹135.40 crore in FY 2023,
• Further increased to ₹199.10 crore in FY 2024.

This consistent revenue growth reflects the company's expanding operations and market demand.

Summary

The Borana Weaves IPO offers investors a chance to participate in a growing textile company with a robust manufacturing base in Surat. With a price band of ₹205-216 per share and subscription dates from May 20 to 22, 2025, this public issue aims to raise ₹144.89 crore primarily for capacity expansion and working capital needs. The company's impressive revenue growth and specialized product line make this IPO notable in the textile sector.