Borana Weaves IPO
- IPO Date20 May, 2025 to 22 May, 2025
- Listing Date27 May, 2025
- Face Value₹10 per share
- Issue Price₹205 to ₹216 per share
- Lot Size69 Shares
- Minimum Investment₹14,904
- Listing AtBSE, NSE
- Total Issue Size67,08,000 Shares
(aggregating up to ₹144.89 Cr) - Fresh Issue67,08,000 Shares
(aggregating up to ₹144.89 Cr)
- Offer for Sale-
- Issue TypeBookbuilding IPO
- Share holding pre issue1,99,37,295
- Shareholding post issue2,66,45,295
IPO Dates
Closing Date
22 May, 2025
Initiation of Refunds
26 May, 2025
Listing Date
27 May, 2025
20 May, 2025
Opening Date
23 May, 2025
Basis of Allotment
26 May, 2025
Credit of Shares
Borana Weaves Lot Size
Investors can bid for a minimum of 69 shares and in multiples thereof. The following table depicts the minimum and maximum investment by Retail Investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 69 | ₹14,904 |
| B-HNI (Min) | 68 | 4692 | ₹10,13,472 |
| Retail (Max) | 13 | 897 | ₹1,93,752 |
| S-HNI (Min) | 14 | 966 | ₹2,08,656 |
| S-HNI (Max) | 67 | 4623 | ₹9,98,568 |
Borana Weaves Promoter Holding
Mangilal Ambalal Borana, Ankur Mangilal Borana, Rajkumar Mangilal Borana, Dhwani Ankur Borana, Mangilal Ambalal Borana HUF, Ankur Mangilal Borana HUF, Rajkumar Mangilal HUF And Borana Filaments Private Limited are the company promoters.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 87.19% | - |
Borana Weaves COMPANY INFORMATION
Borana Weaves IPO is a bookbuilding of ₹144.89 crores. The issue is entirely a fresh issue of 0.67 crore shares. Borana Weaves IPO opens for subscription on May 20, 2025 and closes on May 22, 2025. The allotment for the Borana Weaves IPO is expected to be finalized on Friday, May 23, 2025. Borana Weaves IPO will be list on BSE, NSE with a tentative listing date fixed as Tuesday, May 27, 2025. Borana Weaves IPO price band is set at ₹205 to ₹216 per share. The minimum lot size for an application is 69. The minimum amount of investment required by retail investors is ₹14,145. But it is suggested to the investor to bid at the cutoff price to avoid the oversubscription senerio, which is about to ₹14,904. The minimum lot size investment for sNII is 14 lots (966 shares), amounting to ₹2,08,656, and for bNII, it is 68 lots (4,692 shares), amounting to ₹10,13,472. Beeline Capital Advisors Pvt Ltd is the book-running lead manager of the Borana Weaves IPO, while Kfin Technologies Limited is the registrar for the issue. Refer to Borana Weaves IPO RHP for detailed information.
Incorporated in 2020, Borana Weaves Limited is a manufacturer of unbleached synthetic grey fabric based in Surat, Gujarat. The company's unbleached synthetic grey fabric is often widely used as a base for further processing (including dyeing and printing) in industries such as fashion, traditional textiles, technical textiles, home decor, interior design, etc.
The company also manufactures polyester textured yarn (“PTY Yarn”), which is produced by heating polyester oriented yarn (“POY Yarn”), our raw material used in the production of grey fabric.
Borana Weaves Limited company operates three manufacturing units in Surat, Gujarat, equipped with textile manufacturing technologies for, inter alia, texturizing, warping, water jet looms, and textile folding.
As of September 30, 2024, the company had a total of 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines active at its three units.
Borana Weaves IPO Analysis
In-Depth Analysis of Borana Weaves Limited IPO
Borana Weaves Limited, a Surat-based textile manufacturing company specializing in unbleached synthetic grey fabric and polyester textured yarn, is launching its Initial Public Offering (IPO). Established in 2020, the company has rapidly grown in the synthetic textile space, leveraging advanced machinery and vertical integration to drive efficiency and scale. The IPO comprises a 100% book-built issue of 67,08,000 equity shares.
Business Overview and Strategic Positioning
Borana Weaves focuses on producing grey fabric, a versatile and foundational material used in various downstream applications like fashion, home décor, and industrial textiles. The company operates three active units in Surat, Gujarat, and plans to commission a fourth unit in FY 2025-26. Its operations are vertically integrated, covering processes from texturizing to fabric weaving, giving it control over quality and cost efficiency.
Financial Performance Snapshot
Borana Weaves has demonstrated strong financial growth over the past three years.
FY 2024 Revenue: ₹1,991 million (up from ₹423 million in FY 2022)
FY 2024 EBITDA: ₹414 million (EBITDA margin 21.75%)
FY 2024 PAT: ₹236 million (PAT margin 12%)
RoE (FY 2024): 49.45%, RoCE: 27.42%
Operating cash flows improved significantly from a negative ₹832.62 lakh in FY 2022 to ₹2,213.26 lakh in FY 2024
The company’s strong operational metrics reflect robust demand for its products and effective cost control strategies.
IPO Objectives and Utilization of Funds
The key objectives of the IPO include:
Financing capital expenditure for expanding manufacturing capacity.
Repayment or prepayment of certain borrowings.
Meeting working capital requirements.
General corporate purposes.
The expansion includes increasing the installed capacity to 311.36 million meters by FY 2025-26 with 1,048 machines.
SWOT Analysis
Strengths
Technological Edge: Equipped with 700+ advanced water-jet looms.
Vertical Integration: Seamless control from yarn to fabric enhances efficiency.
Strong Financials: High margins and growth in cash flows.
Reputed Promoter Group: Promoters with over two decades of experience in the textile sector.
Weaknesses
High Operational Costs: Advanced machinery requires ongoing investment.
No Global Footprint: Business operations are currently limited to the domestic market.
Customer Concentration: Revenue from top 10 customers is significant, posing a risk if any key client exits.
Opportunities
International Expansion: Export opportunities in global textile markets.
Rising Demand for Sustainable Fabrics: Positioned to benefit from eco-conscious consumer trends.
Capacity Expansion: Scaling up with an additional 348 machines in the pipeline.
Threats
Intense Competition: From both established and emerging players in the textile industry.
Raw Material Price Volatility: Fluctuating prices of polyester and synthetic fibers.
Regulatory Risks: Changes in environmental or labor laws could impact operations.
Economic Slowdown: Consumer demand for textiles could weaken in downturns.
Peer Comparison
Borana Weaves has outperformed many larger peers in terms of margins:
| Company | Revenue (INR Mn) | EBITDA Margin | PAT Margin |
|---|---|---|---|
| Borana Weaves | 1,991 | 21% | 12% |
| KPR Mill Ltd. | 40,537 | 20% | 14% |
| Arvind Ltd. | 71,005 | 11% | 4% |
| Jindal Worldwide Ltd. | 1,861,424 | 8% | 4% |
This suggests that Borana Weaves is highly efficient despite being a relatively smaller player.
Pros and Cons
H3: Pros
Strong revenue and profit growth year-on-year.
High operational efficiency with consistently improving margins.
Strategic vertical integration across manufacturing stages.
Well-executed capacity expansion plans.
Competitive edge in niche grey fabric segment.
H3: Cons
Heavy dependence on domestic market.
High capital intensity due to continuous investment in technology.
Vulnerability to regulatory and economic changes.
Relatively high customer concentration increases revenue risk.
FAQs on Borana Weaves IPO
Borana Weaves IPO will open on 20 May, 2025 and close on 22 May, 2025. Investors must apply within this period to participate.
The Borana Weaves IPO price band is set between ₹205.00 and ₹216.00 per share. The minimum lot size is 69, requiring an investment of at least ₹14904.00.
The Borana Weaves IPO shares are expected to be listed on 27 May, 2025, subject to regulatory approvals and final allotment.
You can track your Borana Weaves IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Borana Weaves IPO will be listed on major stock exchanges such as NSE and BSE, where you can trade shares once they are listed.
Borana Weaves manufactures unbleached synthetic grey fabric and polyester textured yarn used across fashion, home décor, and industrial textile segments.
The company’s revenue grew from ₹423 million in FY 2022 to ₹1,991 million in FY 2024, with improving EBITDA and PAT margins reflecting sound financial health.
The IPO proceeds will be used for capital expansion, repayment of debts, working capital needs, and other general corporate purposes.
Despite being smaller in scale, Borana Weaves has outperformed larger peers in terms of EBITDA and PAT margins, indicating strong operational efficiency.
Key risks include high competition, raw material price fluctuations, regulatory challenges, and dependency on domestic demand and a limited customer base.
Yes, the company identifies international markets as a key growth opportunity, although no current operations exist outside India.
Given its profitability, scalability, and market positioning in a growing segment, Borana Weaves presents a promising long-term investment opportunity, albeit with certain inherent industry risks.