Borana Weaves IPO sees strong start, subscribed 8.54x on Day 1; details here

The initial public offering (IPO) of Borana Weaves Ltd commenced on May 20, 2025, drawing solid interest from investors, set to conclude on May 22. The shares are available in a price band of Rs 205-216 each. Investors are required to apply in lots of at least 69 shares. The IPO aims to raise Rs 144.89 crore through a fresh issue of up to 67,08,000 equity shares.

On the first day, the IPO received bids for 3,15,01,122 equity shares, around 8.54 times the 36,89,457 shares offered. The IPO has seen solid interest across investor categories, notably with retail investors subscribing 25 times their reserved portion. Non-institutional investors (NIIs) have also shown substantial interest, with their portion being subscribed 11.55 times. The segment for qualified institutional bidders (QIBs) saw a subscription of 1.55 times.

The strong demand from investors has bolstered the grey market premium (GMP) for Borana Weaves, which was last noted at Rs 63 per share. This suggests potential listing gains of around 29%.

The company's IPO has allocated 75% of shares to QIBs, 15% to NIIs, and the remaining 10% to retail investors. This allocation strategy reflects a balanced approach to engaging different segments of the investing community, aiming to draw substantial interest across the board. Borana Weaves raised Rs 65.20 crore from 11 anchor investors before the IPO, providing a solid foundation and indicating strong institutional backing.

Beeline Capital Advisors is the sole book-running lead manager of the issue, and Kfin Technologies is the registrar. The company plans to finalise share allotment by May 23, with listing on the BSE and NSE expected on May 27.

Borana Weaves, a company in the textiles sector, is focusing on utilising the capital raised through this IPO to expand its operations.

Anand Rathi has assigned a 'Subscribe for long term' rating to the IPO. "On valuation parse, based on annualised FY25 it is seeking PE of 14.7 times, FY24 earnings PE stands at 24.4 times and post issue market cap comes at Rs 575.5 crore with this the issue is fully priced. We believe that company’s shift to water jet loom could benefits over long term with high yields further capitalising 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 stated.

Gaurav Garg of Lemonn Markets Desk believes that the issue has 'fair' valuations. "At a P/E of ~17.5x, valuations seem fair, making it a suitable pick for retail and HNI investors looking to capitalise on debut momentum—while long-term investors may want to monitor execution and expansion before committing," Garg said.

Key dates for this IPO include the opening on May 20, closing on May 22, with the basis of allotment on May 23. Refunds will be initiated shortly after, with shares credited to demat accounts and trading expected to begin on May 27. Interested parties should ensure all application steps, including UPI mandate confirmation, are completed by the cut-off time to secure participation.