Borana Weaves IPO closes today: Check subscription, latest GMP and more
Borana Weaves is selling its shares in the price band of Rs 205-216, which could be applied for a minimum of 69 shares and its multiples to raise a total of Rs 144.89 crore between May 20-22.
- May 22, 2025,
- Updated May 22, 2025 2:05 PM IST
The initial public offering (IPO) of Borana Weaves, a Surat-based manufacturer of unbleached synthetic grey fabric, has attracted significant attention from investors, particularly from retail and high-net-worth individuals. The bidding process, which commenced on May 20, 2025, concludes today, May 22, 2025.
Borana Weaves, established in 2020, specialises in producing unbleached synthetic grey fabric, widely used as a base for further processing in various industries, including fashion and home decor. The company is offering shares within a price band of Rs 205-216, seeking to raise Rs 144.89 crore through this IPO. Investors can apply for a minimum of 69 shares. By 1.45 pm on May 20, bids were received for 30,70,76,841 equity shares, or 83.23 times the offered shares, indicating robust investor interest.
As of the data from BSE until 1.40 pm on Thursday, May 22, the retail portion was oversubscribed 152.31 times, while non-institutional investors (NIIs) subscribed 167.54 times. However, the quota reserved for qualified institutional bidders (QIBs) witnessed a 16.69 times.
The grey market premium (GMP) for Borana Weaves has been stable, standing around Rs 55, suggesting a potential 26 per cent listing gain for investors. This uptick reflects strong demand despite volatile market conditions, highlighting investor confidence in the company's growth prospects.
Despite the positive market response, brokerage firms have noted certain concerns. While acknowledging Borana Weaves' strong market presence and expansion plans, analysts point out the company's high valuations and regional concentration. These factors, coupled with the low market share and heavy reliance on grey fabric sales, have been highlighted as potential risks for investors.
Anand Rathi Shares believes that company’s shift to water jet loom could benefits over long term with high yields further capitalizing its top and bottom lines additionally changing fashion trends, rising brand awareness, and fast-changing styles are boosting demand for India’s synthetic textiles stand to gain in both domestic and exports," it said with 'subscribe for long term' rating.
Borana Weaves has reserved 75 per cent of the IPO for QIBs, 15 per cent for NIIs, and 10 per cent for retail investors. The company successfully raised Rs 65.20 crore from 11 anchor investors, signalling solid institutional backing. Beeline Capital Advisors is acting as the sole book-running lead manager for the issue, with Kfin Technologies serving as the registrar.
Borana Weaves is poised for growth in the synthetic textile market, with India’s polyester demand projected to reach 6.7M tonnes by 2025. Its capacity expansion to 34,60,32,000 meters, advanced water jet looms, and 204 customers in 2024 drive market share gains, expect 20-30 per cent revenue growth with stable margins, said Arihant Capital with a 'neutral' rating.
The allotment of shares is scheduled for finalisation on May 23, 2025, with refunds expected to be initiated shortly thereafter. The shares are anticipated to be credited to investors' Demat accounts by May 26, 2025. Borana Weaves is set to debut on both the BSE and NSE on May 27, 2025, providing a platform for further investor engagement.
The initial public offering (IPO) of Borana Weaves, a Surat-based manufacturer of unbleached synthetic grey fabric, has attracted significant attention from investors, particularly from retail and high-net-worth individuals. The bidding process, which commenced on May 20, 2025, concludes today, May 22, 2025.
Borana Weaves, established in 2020, specialises in producing unbleached synthetic grey fabric, widely used as a base for further processing in various industries, including fashion and home decor. The company is offering shares within a price band of Rs 205-216, seeking to raise Rs 144.89 crore through this IPO. Investors can apply for a minimum of 69 shares. By 1.45 pm on May 20, bids were received for 30,70,76,841 equity shares, or 83.23 times the offered shares, indicating robust investor interest.
As of the data from BSE until 1.40 pm on Thursday, May 22, the retail portion was oversubscribed 152.31 times, while non-institutional investors (NIIs) subscribed 167.54 times. However, the quota reserved for qualified institutional bidders (QIBs) witnessed a 16.69 times.
The grey market premium (GMP) for Borana Weaves has been stable, standing around Rs 55, suggesting a potential 26 per cent listing gain for investors. This uptick reflects strong demand despite volatile market conditions, highlighting investor confidence in the company's growth prospects.
Despite the positive market response, brokerage firms have noted certain concerns. While acknowledging Borana Weaves' strong market presence and expansion plans, analysts point out the company's high valuations and regional concentration. These factors, coupled with the low market share and heavy reliance on grey fabric sales, have been highlighted as potential risks for investors.
Anand Rathi Shares believes that company’s shift to water jet loom could benefits over long term with high yields further capitalizing its top and bottom lines additionally changing fashion trends, rising brand awareness, and fast-changing styles are boosting demand for India’s synthetic textiles stand to gain in both domestic and exports," it said with 'subscribe for long term' rating.
Borana Weaves has reserved 75 per cent of the IPO for QIBs, 15 per cent for NIIs, and 10 per cent for retail investors. The company successfully raised Rs 65.20 crore from 11 anchor investors, signalling solid institutional backing. Beeline Capital Advisors is acting as the sole book-running lead manager for the issue, with Kfin Technologies serving as the registrar.
Borana Weaves is poised for growth in the synthetic textile market, with India’s polyester demand projected to reach 6.7M tonnes by 2025. Its capacity expansion to 34,60,32,000 meters, advanced water jet looms, and 204 customers in 2024 drive market share gains, expect 20-30 per cent revenue growth with stable margins, said Arihant Capital with a 'neutral' rating.
The allotment of shares is scheduled for finalisation on May 23, 2025, with refunds expected to be initiated shortly thereafter. The shares are anticipated to be credited to investors' Demat accounts by May 26, 2025. Borana Weaves is set to debut on both the BSE and NSE on May 27, 2025, providing a platform for further investor engagement.