Borana Weaves Limited, headquartered in Surat, Gujarat, is launching its Initial Public Offering (IPO) in May 2025, aiming to raise ₹144.89 crore through a fresh issue of equity shares. This IPO offers investors an opportunity to tap into India’s expanding synthetic textile industry. The subscription period runs from May 20 to May 22, 2025.
Borana Weaves Company Overview: Leading Synthetic Textile Manufacturer
Founded in 2020, Borana Weaves specializes in producing unbleached synthetic grey fabric and polyester textured yarn (PTY), both of which are essential components in various textile applications. The company operates three manufacturing units in Surat, all equipped with advanced water jet looms.
It supplies products to textile-intensive states across India, including Gujarat, Rajasthan, Uttar Pradesh, West Bengal, Haryana, and Delhi. The company was converted to a public limited entity in 2024, and it is led by promoters with over two decades of experience in the textile industry.
Borana Weaves IPO 2025 Details: Issue Dates, Price Band, and Lot Size
The IPO comprises a total fresh issue of 67.08 lakh equity shares. The price band for the issue is set between ₹205 and ₹216 per share, with a face value of ₹10. For retail investors, the minimum application size is one lot of 69 shares, which would require an investment of approximately ₹14,145 to ₹14,904.
The IPO opens for public subscription from May 20 to May 22, 2025, while anchor investors can place bids on May 19. The shares are expected to be listed on both the BSE and NSE by May 27, 2025.
Borana Weaves IPO Objectives: Purpose and Use of Proceeds
The proceeds from the IPO will primarily be used to establish a fourth manufacturing unit in Surat, aimed at expanding synthetic fabric production capacity. A portion of the funds will also be allocated for working capital needs and general corporate purposes, allowing the company to scale operations and remain financially agile.
Key use of funds includes:
- Setting up a new production facility (Unit 4) in Surat
- Enhancing working capital for daily operations
- Supporting overall corporate growth and flexibility
Borana Weaves Financial Performance: Revenue, Profit, and Growth Analysis
Borana Weaves has shown remarkable growth since FY22. Its revenue has jumped from ₹42.30 crore in FY22 to ₹199.10 crore in FY24. Similarly, profit after tax (PAT) increased sharply from ₹2.00 crore to ₹23.58 crore during the same period.
Although Return on Equity (ROE) has decreased from a high 125.8% in FY22 to 66.0% in FY24, it remains strong. Return on Capital Employed (ROCE) has remained stable at around 31.5%, while the debt-to-equity ratio has improved from 1.7 to approximately 1.45—indicating better financial leverage and operational efficiency.
Borana Weaves Strengths: Key Competitive Advantages and Market Position
Borana Weaves benefits from multiple strategic and operational strengths that enhance its competitive edge in the synthetic textile sector. Its presence in Surat offers easy access to raw materials, skilled labor, and established distribution networks.
Key strengths include:
- Strategic location in Surat, India’s textile hub
- Integrated production with 700+ high-speed water jet looms
- Leadership with over 20 years of domain expertise
- Wide customer base across key Indian states
- Use of environmentally friendly and less polluting machinery
Borana Weaves IPO Risks and Concerns: Factors to Consider Before Investing
Despite its impressive growth, the company faces several business and operational risks that investors should consider. A large portion of its revenue comes from Gujarat, and it lacks long-term contracts with customers and suppliers.
Additional risks include:
- Heavy reliance on Gujarat-based customers, with limited diversification
- Dependence on a promoter-related supplier without formal agreements
- Exposure to intense competition in the price-sensitive textile sector
- Geographic concentration increasing vulnerability to regional issues
- Possible delays in executing the Unit 4 expansion plan
- Seasonal demand fluctuations and limited brand recognition in a crowded market
Borana Weaves IPO Grey Market Premium (GMP): Current Market Sentiment
As of May 16, 2025, the Grey Market Premium (GMP) for Borana Weaves IPO is approximately ₹58 per share. This implies a potential listing price of around ₹274, which translates to an estimated 27% gain over the upper end of the price band.
However, it is important to remember that GMP is speculative, influenced by market sentiment, and does not guarantee actual listing performance.
Indian Textile Industry Outlook and Borana Weaves’ Growth Potential
India’s textile sector is poised for long-term growth, with the overall market projected to reach $350 billion by 2030 at a 10% CAGR. The synthetic fabric segment, in particular, has shown steady expansion with a CAGR of about 5.19% from FY19 to FY24.
Growth drivers include:
- Rising urbanization and consumer demand
- Government support through schemes like PLI (Production-Linked Incentives)
- Export opportunities and global textile demand
- Increasing focus on sustainability, automation, and digitization
Major players in this space include Reliance Industries, Arvind, Vardhman Textiles, and Raymond.
How to Apply for Borana Weaves IPO 2025: Step-by-Step Guide for Investors
To participate in the Borana Weaves IPO, investors must have a Demat account, a PAN card, and a linked bank account enabled for ASBA (Application Supported by Blocked Amount).
Follow these steps:
- Log in to your broker’s online IPO platform or visit your bank for an offline ASBA form
- Apply for at least one lot (69 shares)
- Enter your UPI ID for online ASBA authorization
- Submit the application before the deadline (May 22, 2025)
- Apply at the cut-off price to maximize allotment chances
- Note that only one IPO application per PAN is permitted