SOURCE : NEW18 NEWS
Last Updated:May 22, 2025, 18:03 IST
Unlisted shares of Borana Weaves Ltd are currently trading at Rs 268 apiece in the grey market, which is a 24.07 per cent premium or GMP over the IPO price of Rs 216.
Shares of Borana Weaves will be listed on both BSE and NSE.
Borana Weaves IPO Day 3: The initial public offering of Borana Weaves Ltd, which has been closed on Thursday at 5:00 pm, has received an overwhelming response from investors. Till 5:00 pm on the final day of bidding on Thursday, the Rs 144.89-crore IPO received a strong 147.85 times subscription, garnering bids for 54,54,99,303 shares as against 36,89,457 shares on offer.
The retail and NII participation stood at 200.50 times and 237.41 times, respectively. The qualified institutional buyers (QIB) category has received a 85.53 times subscription on Day 3 so far.
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The IPO received an 8.66 times subscription on the first day of bidding on Tuesday, and a 29.67 times subscription on Day 2 on Wednesday.
The bidding will be closed on Thursday, May 22.
The price has been fixed at Rs 216 apiece.
Borana Weaves IPO GMP Today
According to market observers, unlisted shares of Borana Weaves Ltd are currently trading at Rs 268 apiece in the grey market, which is a 24.07 per cent premium or GMP over the IPO price of Rs 216. It indicates a strong listing gains for investors on May 27, the tentative listing date.
The shares will be listed on both BSE and NSE.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Borana Weaves IPO: Analysts’ Recommendations
Most analysts have give a ‘subscribe for long-term’ call for the IPO, and also for the listing gains.
Lemonn Markets Desk’s Gaurav Garg, said, “The Borana Weaves IPO offers a compelling short-term opportunity, with strong listing gain potential driven by robust growth, healthy margins, and attractive GMP. The company’s niche positioning and integrated manufacturing give it an edge, but high regional concentration and raw material volatility remain key risks.”
At a P/E of ~17.5x, valuations seem fair, making it a suitable pick for retail and HNI investors looking to capitalize on debut momentum—while long-term investors may want to monitor execution and expansion before committing, he added.
Brokerage firm Anand Rathi in its note said, “Borana Weaves is well-placed to establish direct and strategic regional presence to ensure efficient product delivery and maintain high levels of service responsiveness, thereby reinforcing customer trust and loyalty. With the global market for man-made fibres set to grow by 3.7 per cent by 2025, India’s synthetic textile industry stands to gain, with strong growth chances in both local use and exports.”
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 5,755 Mn 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 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. Therefore, we recommend the issue can be consider as ‘Subscribe for long term’, Anand Rathi added.
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit of Rs 42.36 crore / Rs 1.80 crore (FY22), Rs 135.53 crore / Rs 16.30 crore (FY23), and Rs 199.61 crore / Rs 23.59 crore (FY24). For 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs 29.31 crore on a total income of Rs 215.71 crore.
Giving a ‘Subscribe for Long Term’ rating for the IPO, Bajaj Broking in its note said, “For the last three fiscals, the company has posted an average EPS of Rs 8.77 (simple average) and an average RoNW of 64%. The issue is priced at a P/BV of 5.63 based on its NAV of Rs. 38.40 as of December 31, 2024, and at a P/BV of 2.60 based on its post-IPO NAV of Rs. 83.11 per share (at the upper cap).”
“If we attribute FY25 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 14.73. Based on FY24 earnings, the P/E stands at 24.41. Thus, the issue is fully priced,” it added.
Borana Weaves IPO: More Details
The Borana Weaves IPO is entirely a fresh issue of 67.08 lakh shares. Its price has been fixed at Rs 216 per share.
For investors, the minimum lot size for an application is 69. The minimum amount of investment required by retail investors Rs 14,145. The minimum lot size investment for small NII is 14 lots (966 shares) amounting to Rs 2,08,656. For big NII, the minimum is 68 lots (4,692 shares) is Rs 10,13,472.
Proceeds from the IPO will be utilised to finance the cost of setting up a new manufacturing unit to expand capabilities to produce grey fabric at Surat, Gujarat, funding incremental working capital requirements, and for general corporate purposes.
“Over the past few years, we have grown our manufacturing capabilities in the synthetic textile segment. The proceeds from the IPO will support the expansion of our production infrastructure and help us address our working capital needs. This step aligns with our long-term strategy of scaling operations while maintaining focus on product quality and operational efficiency,” Borana Weaves’ Chairman and MD Mangilal Ambalal Borana said.
Incorporated in 2020, Borana Weaves engaged in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries, including fashion, traditional textiles, home decor, and interior design.
Beeline Capital Advisors is the book running lead manager and KFin Technologies is the registrar to the issue.
- First Published:
May 22, 2025, 10:24 IST
