Borana Weaves Limited, a manufacturer of synthetic fabrics, is launching its initial public offering (IPO) worth ₹144.89 crores. The subscription window runs from May 20 to May 22, 2025, with the company offering 0.67 crore fresh shares to the public. The price band has been established at ₹205 to ₹216 per share, with a lot size of 69 shares, requiring retail investors to commit a minimum of ₹14,145 to participate.
Following the subscription period, share allotment is scheduled for May 23, 2025, with the textile company's shares expected to commence trading on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on May 27, 2025. This offering represents an opportunity for investors to acquire equity in a textile company positioned for market expansion and potential growth.
Borana Weaves Limited IPO is a fundraise worth ₹144.89 crores comprising fresh issue of 0.67 crore shares. The IPO will be available for subscription from May 20, 2025, to May 22, 2025, providing an opportunity for investors looking to gain a stake in the textile sector.
| Borana Weaves IPO date | May 20, 2025 - May 22, 2025 |
| Price band | ₹205 to ₹216 per share |
| Face value | ₹10 per share |
| Lot size | 69 shares |
| Issue type | Book-built issue IPO |
| Fresh issue | 67,08,000 shares amounting to ₹144.89 crores |
| Total issue size | 67,08,000 shares amounting to ₹144.89 crores |
| Listing at | BSE, NSE |
| Share holding post issue | 2,66,45,295 shares |
| Share holding pre issue | 1,99,37,295 shares |
The Borana Weaves Limited IPO opens for subscription on May 20, 2025, and closes on May 22, 2025, with allotment slated for May 23, 2025.
| IPO open date | May 20, 2025 (Tuesday) |
| IPO close date | May 22, 2025 (Thursday) |
| Basis of allotment | May 23, 2025 (Friday) |
| Initiation of refunds | May 26, 2025 (Monday) |
| Credit of shares to demat account | May 26, 2025 (Monday) |
| Listing date on exchanges | May 27, 2025 (Tuesday) |
| Cut-off time for UPI mandate confirmation | 5 PM on May 22, 2025 (Thursday) |
Established in 2020, Borana Weaves Limited is a Surat-based manufacturer specializing in unbleached synthetic grey fabric, which serves as a foundational material for various industries including fashion, traditional and technical textiles, and home décor. The company also produces polyester textured yarn (PTY) through a heating process applied to polyester oriented yarn (POY), their primary raw material.
Operating from three manufacturing facilities in Surat, Gujarat, Borana Weaves maintains a robust production infrastructure featuring advanced textile technologies. As of September 2024, their operational capacity includes 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines distributed across their manufacturing units.
Borana Weaves Limited plans to allocate the IPO proceeds toward three strategic initiatives: primarily establishing a new manufacturing facility in Surat, Gujarat (₹713.48 million) to expand its grey fabric production capabilities, supporting incremental working capital requirements (₹265 million), and addressing general corporate purposes, collectively positioning the company for enhanced production capacity and operational growth.
The Borana Weaves Limited IPO showcases a healthy market capitalization of ₹575.54 crores. Key performance indicators, as on March 31, 2024 reflect the company's financial health, with a Return on Equity (RoE) of 49.45%, Return on Capital Employed (RoCE) of 27.42%, and Return on Net Worth (RoNW) of 49.77%. The Price-to-Book Value (P/BV) is seen at 9.09 and the PAT Margin is 11.85.
| Period Ended | December 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 149.67 | 137.05 | 74.98 | 31.90 |
| Revenue | 215.71 | 199.60 | 135.53 | 42.36 |
| Profit After Tax | 29.31 | 23.59 | 16.30 | 1.80 |
| Net Worth | 76.55 | 47.39 | 24.11 | 1.81 |
| Reserves & Surplus | 56.87 | 47.66 | 24.07 | 1.80 |
| Total Borrowing | 54.03 | 69.10 | 38.89 | 27.31 |
Amount in ₹ crores
Borana Weaves Limited has established itself as a leading manufacturer of synthetic grey fabric in Surat, leveraging advanced manufacturing technologies including 700 water jet looms that ensure superior quality and production efficiency. The company benefits from strong leadership under experienced promoters, particularly Chairman and Managing Director Mangilal Ambalal Borana, who brings over 24 years of textile industry experience. This leadership has translated into impressive financial results with significant revenue and profitability growth since inception.
The company maintains a strategic regional presence in Gujarat with proximity to major textile hubs like Ahmedabad and Mumbai, enhancing market connectivity. Their focused product strategy specializing in grey fabric allows for efficient resource utilization and targeted market penetration. Customer satisfaction is evidenced by a remarkable 98% repeat order rate, and the company has implemented sustainable practices including water recycling initiatives. Additionally, their expansion plans with Unit 4 will add 112.75 million meters of production capacity by June 2025.
Borana Weaves faces significant customer concentration risk with its top 10 customers accounting for over 98% of revenue in FY23, all based in Gujarat and operating without long-term contracts. This regional dependency extends to its supply chain, with offices, manufacturing units, and 90% of raw material suppliers located in Gujarat, exposing the company to region-specific risks including regulatory changes and natural disasters. The company's heavy reliance on grey fabric (84.24% of revenue in the first nine months of FY25) creates vulnerability to demand or pricing fluctuations in this single product category.
The company operates in a highly competitive and fragmented textile industry with continuous pricing pressures that reduce operating margins. Borana Weaves depends heavily on key raw materials like POY yarn, which is subject to price volatility and is primarily sourced from promoter group entities without long-term agreements. Additional challenges include high operating costs associated with advanced machinery, vulnerability to regulatory and environmental compliance requirements, limited global presence, risks related to unregistered trademarks, and the pending approval from the Gujarat Pollution Control Board for its Unit 4 expansion project.
The Borana Weaves Limited IPO presents investors with an enticing entry point into the textile industry during the company's initial public phase, though prudent participation demands comprehensive assessment of its operational foundations, competitive position, and expansion trajectory before committing capital; potential shareholders should undertake meticulous due diligence to confirm alignment between this investment opportunity and their individual financial goals and risk appetite, thereby converting an appealing market prospect into a calculated portfolio decision.
What is the Borana Weaves IPO?
The Borana Weaves Limited IPO is a main-board offering consisting entirely of a fresh issue of 0.67 crore equity shares with a face value of ₹10 per share, aiming to raise ₹144.89 crores. The share price is set between ₹205 and ₹216, with a minimum order quantity of 69 shares. This IPO will be open for subscription from May 20, 2025, to May 22, 2025. Kfin Technologies Limited is the registrar while Beeline Capital Advisors Pvt Ltd is the book-running lead manager.
When will the Borana Weaves IPO open?
The Borana Weaves Limited IPO will open for subscription on May 20, 2025, and will close on May 22, 2025.
When is the Borana Weaves IPO listing date?
The tentative listing date for the Borana Weaves Limited IPO is Tuesday, May 27, 2025.
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