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Borana Weaves IPO Day 2: The initial public offering (IPO) of Borana Weaves entered its second day of bidding on Wednesday, May 21, receiving a robust response from investors following a strong debut on Day 1.
As of 11:10 am on Wednesday, the IPO was subscribed 13.80 times, with total bids reaching 5,08,96,332 shares against 36,89,457 shares on offer. The retail investor segment continued to lead, with a subscription of 40 times, having received bids for 2,68,34,514 shares against the 6,70,800 shares allocated, according to BSE data.
The non-institutional investors (NII) category followed with 20.95 times subscription, having received bids for 2,10,75,774 shares against an available 10,06,200. The qualified institutional buyers (QIBs) segment also saw positive interest, with bids for 31,91,733 shares against 20,12,457 on offer, translating to a subscription of 1.59 times.
Borana Weaves IPO Day 1: Subscription status
The IPO, which opened for public subscription on Tuesday, May 20, is scheduled to close on Thursday, May 22. On its opening day, the issue was subscribed 8.54 times by 5 pm, according to data available on the BSE. Retail participation was particularly strong, with that segment alone oversubscribed 25 times, while the NII category saw 11.55 times subscription.
Borana Weaves’ public issue is a book-built IPO consisting solely of a fresh issue of 6.7 million equity shares. There is no offer-for-sale (OFS) component in this issue. The company has allocated not less than 75 percent of the net offer to QIBs, not more than 15 percent to NIIs, and up to 10 percent to retail investors.
Borana Weaves IPO: Price band, lot size, allotment timeline & more
The IPO is priced in a band of Rs 205 to Rs 216 per share, with a minimum bid lot of 69 shares. A single lot for retail investors would require an investment of Rs 14,904, while the maximum permissible investment for a retail investor, capped at 13 lots (897 shares), would amount to Rs 1,93,752.
The allotment of shares is expected to take place on Friday, May 23. Successful applicants will receive shares in their demat accounts by Monday, May 26. Borana Weaves is expected to list on the BSE and NSE on Tuesday, May 27. KFIN Technologies is the registrar to the issue, and Beeline Capital Advisors is acting as the sole book-running lead manager.
Borana Weaves IPO: Use of proceeds
As per the company’s Red Herring Prospectus, Borana Weaves plans to utilise the proceeds from the IPO to set up a new manufacturing unit in Surat, Gujarat, aimed at expanding its production capabilities for grey fabric. The funds will also support incremental working capital requirements and general corporate purposes.
Borana Weaves company overview: Surat-based textile manufacturer
Borana Weaves, incorporated in 2020, is based in Surat and specialises in manufacturing unbleached synthetic grey fabric. This fabric is widely used in industries such as fashion, home décor, and technical textiles. The company also produces polyester textured yarn, derived from polyester oriented yarn, used as raw material for grey fabric.
Currently, Borana Weaves operates three manufacturing units in Surat, equipped with advanced technologies including texturizing, warping, water jet looms, and textile folding machinery. As of September 30, 2024, the company operated 15 texturizing machines, six warping machines, 700 water jet looms, and 10 folding machines across its facilities.
Financial snapshot
Financially, the company has demonstrated strong growth. Its total assets rose to Rs 149.67 crore by December 31, 2024, from Rs 137.05 crore in March 2024 and Rs 74.98 crore in March 2023. Revenue for the nine months ended December 2024 reached Rs 215.71 crore, already surpassing the Rs 199.60 crore reported for the full financial year 2023–24. 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.
The company’s net worth increased significantly, reaching Rs 76.55 crore by December 2024, up from Rs 47.39 crore in FY24 and Rs 24.11 crore in FY23. Reserves and surplus followed a similar upward trajectory, rising to Rs 56.87 crore in the latest period. Borana Weaves has also brought down its total borrowings to Rs 54.03 crore by December 2024, from Rs 69.10 crore in FY24, reflecting prudent financial management despite earlier increases.
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