Borana Weaves IPO Day 3: Issue oversubscribed 50.34 times; retail portion booked 115.33x so far on its last day

Borana Weaves IPO: The initial public offering (IPO) of Borana Weaves Limited entered its third and final day of bidding on Thursday, May 22, after witnessing robust investor interest during the first two days. As of 11:24 am on Day 3, the issue was oversubscribed 50.34 times, with total bids received for 18,57,13,293 shares against the 36,89,457 shares on offer.

The Qualified Institutional Buyers (QIBs) portion was subscribed 1.99 times, receiving bids for 40,14,006 shares against a quota of 20,12,457 shares. The Non-Institutional Investors (NIIs) segment recorded an impressive 103.69 times subscription, with 10,43,34,486 shares bid for against the 10,06,200 shares reserved for this category. Retail Individual Investors (RIIs) continued their strong show of interest, subscribing their portion by 115.33 times, with 7,73,64,801 shares bid for as against the 6,70,800 shares earmarked for them.

Borana Weaves IPO Day 2: Subscription status

On its second day of bidding, by 4:57 pm, data from the BSE showed that the issue was subscribed 29.44 times in total. Retail and non-institutional investors were the most active participants. Retail investors alone bid for over 5.16 crore shares against just 6.70 lakh shares reserved for them, which means their portion was subscribed more than 77 times. 

Non-institutional investors also showed massive interest, applying for over 5.33 crore shares against a little over 10 lakh on offer — a 53 times oversubscription. Even institutional investors weren’t far behind, bidding for around 35.46 lakh shares compared to the 20.12 lakh allocated to them, which pushed their portion to 1.76 times subscription.

Borana Weaves IPO: Price band, lot size, allotment timeline & more

This IPO is a completely fresh issue, meaning no existing shareholders are selling their stake. The company is offering 67 lakh new shares. Out of the total offer, 75 per cent is reserved for institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail buyers. 

The price band is set between Rs 205 and Rs 216 per share. For retail investors, the minimum application size is one lot of 69 shares, which will cost Rs 14,904 at the upper price band. Retail investors can apply for up to 13 lots  or 897 shares  which would cost about Rs 1.93 lakh. The basis of allotment will likely be finalised by Friday, May 23, with shares expected to be credited to demat accounts by Monday, May 26. 

The stock is scheduled to list on the NSE and BSE on Tuesday, May 27. KFIN Technologies is handling the registrar work for this IPO, and Beeline Capital Advisors is the sole lead manager.

Borana Weaves IPO: Use of proceeds

The company plans to use the money raised from the IPO to set up a new manufacturing unit in Surat, Gujarat. This unit will help Borana Weaves expand its capacity to produce grey fabric. Apart from this, some of the funds will be used for working capital needs and general corporate expenses.

Borana Weaves company overview

Borana Weaves, founded in 2020 and based in Surat, manufactures unbleached synthetic grey fabric, which is used widely in fashion, home furnishings, and technical textiles. It also produces polyester textured yarn, a key material used in making grey fabric. The company currently runs three manufacturing units in Surat. As of September 2024, its facilities are equipped with 15 texturising machines, six warping machines, 700 water jet looms, and 10 textile folding machines.

Financial snapshot

The company has been growing fast financially. Its total assets stood at Rs 149.67 crore by December 2024, up from Rs 137.05 crore in March 2024 and Rs 74.98 crore in March 2023. For the nine months ending December 2024, it clocked revenue of Rs 215.71 crore  already more than the Rs 199.60 crore it earned in all of FY24. Profit after tax came in at Rs 29.31 crore for the nine-month period, compared to Rs 23.59 crore in FY24 and Rs 16.30 crore in FY23. Net worth rose to Rs 76.55 crore by the end of 2024, while reserves grew to Rs 56.87 crore. Importantly, the company also brought down its total borrowings to Rs 54.03 crore by December 2024 from Rs 69.10 crore in March.