Borana Weaves IPO Day 1: Issue subscribed over 2 times within 80 minutes; retail portion booked 7.95 times

Borana Weaves IPO Day 1: Surat-based textile manufacturer Borana Weaves Limited made a strong debut on Dalal Street as its initial public offering (IPO), which opened for subscription on Monday, May 20, was fully subscribed within hours of the bidding window opening.

According to data from the BSE, the issue was subscribed 1.79 times by 11 am, receiving 66,07,233 bids against 36,89,457 shares offered. The retail investor segment led the enthusiasm, with the portion booked 6.84 times—attracting 45,90,708 bids for 6,70,800 shares. As per BSE data, non-institutional investors also showed interest, subscribing 1.72 times and receiving 17,37,898 bids against 10,06,200 shares on offer.

The IPO, which comprises a fresh issue of 67.08 lakh equity shares, aims to raise Rs 144.88 crore at the upper end of the price band. The public issue will close on Thursday, May 22.

Borana Weaves IPO details: price band, lot size, and structure

The IPO is a book-built issue with no offer-for-sale (OFS) component. The company has fixed the price band between Rs 205 and Rs 216 per share, with a lot size of 69 shares. Retail investors can bid for a minimum investment of Rs 14,904 for one lot and up to Rs 1,93,752 for a maximum of 13 lots (897 shares).

As per the IPO structure, 75 per cent of the net offer is reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors.

Borana Weaves IPO: Allotment and listing dates

Post the closure of the subscription window on May 22, the basis of allotment is expected to be finalised by Friday, May 23. Shares will be credited to successful investors’ demat accounts by Monday, May 26, and the company is likely to list its shares on both BSE and NSE on Tuesday, May 27, 2025.

KFIN Technologies is the registrar for the issue, while Beeline Capital Advisors is acting as the sole book-running lead manager.

Use of proceeds: Expanding production capabilities

According to its Red Herring Prospectus (RHP), Borana Weaves plans to use the IPO proceeds to set up a new manufacturing unit in Surat to produce grey fabric, a core component in various industries including fashion, home decor, and technical textiles. The funds will also be used to meet incremental working capital needs and for general corporate purposes.

Borana Weaves: About the company

Founded in 2020, Borana Weaves Limited is a fast-growing manufacturer of unbleached synthetic grey fabric and polyester textured yarn (PTY Yarn). The company operates three manufacturing units in Surat, which house 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 textile folding machines as of September 30, 2024.

Its grey fabric products are used as a base material for dyeing and printing across a range of industries, while its PTY Yarn is produced by heating POY Yarn, which is used as a key raw material in fabric manufacturing.

Borana Weaves : Financial performance

Borana Weaves has witnessed a sharp rise in both revenue and profitability in recent years. For the nine-month period ended December 31, 2024, the company reported revenue of Rs 215.71 crore, already surpassing the Rs 199.60 crore reported for the entire FY24. In comparison, it had clocked Rs 135.53 crore in FY23 and Rs 42.36 crore in FY22.

The profit after tax stood 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, showing strong earnings momentum.

The company’s net worth also saw a significant jump, rising to Rs 76.55 crore as of December 2024 from Rs 47.39 crore in March 2024, while reserves and surplus grew to Rs 56.87 crore. At the same time, total borrowings declined to Rs 54.03 crore, reflecting Borana Weaves’ effort to streamline its balance sheet.