Surat-based textile manufacturer draws strong institutional demand; IPO opens on 20 May at upper band of INR 216 per share.
Borana Weaves, the Surat-headquartered textile manufacturing company known for its production of synthetic grey fabric and polyester textured yarn, successfully raised INR 65.2 crore (45% of the total issue size) through its anchor book on 19 May 2025, a day ahead of the launch of its Initial Public Offering (IPO). The anchor round saw participation from a diverse set of 11 institutional investors, marking a strong vote of confidence in the company’s growth trajectory and financial fundamentals.
Borana Weaves Anchor Allocation Details
As per regulatory filings, Borana Weaves allocated 30,18,543 equity shares at the upper end of the IPO price band — INR 216 per share — to anchor investors. This price includes a premium of INR 206 on the face value of INR 10 per share. The total anchor book investment stands at INR 65.19 crore, which accounts for roughly 45% of the total issue size earmarked for qualified institutional buyers (QIBs).
The anchor book attracted prominent names in the alternative investment and institutional space. Key investors and their allocations include:
- Pine Oak Global Fund – 5,17,776 shares (INR 11.18 crore)
- Chhattisgarh Investments – 3,47,415 shares (INR 7.50 crore)
- Innovative Vision Fund – 2,66,202 shares (INR 5.75 crore)
- VPK Global Ventures Fund – Scheme 1 – 2,66,202 shares (INR 5.75 crore)
- Aarth AIF Growth Fund – 2,31,564 shares (INR 5.00 crore)
- Saint Capital Fund – 2,31,564 shares (INR 5.00 crore)
- Finavenue Capital Trust – Growth Fund – 2,31,564 shares (INR 5.00 crore)
- Invicta Continuum Fund I – 2,31,564 shares (INR 5.00 crore)
- Nexus Equity Growth Fund – Scheme 1 – 2,31,564 shares (INR 5.00 crore)
- Rajasthan Global Securities – 2,31,564 shares (INR 5.00 crore)
- Sunrise Investment Trust – Opportunities Fund – 2,31,564 shares (INR 5.00 crore)
Borana Weaves IPO – Overview
Borana Weaves is raising INR 144.89 crore through a purely fresh issue of 67.08 lakh equity shares, priced between INR 205 to 216 per share. There is no Offer for Sale (OFS) component. The IPO opens for public subscription on 20 May and closes on 22 May 2025. The minimum bid lot is 69 shares, translating to a retail investment of approximately INR 14,904 at the upper band.
Utilization of Proceeds
The net proceeds from the IPO will be strategically deployed as follows:
- INR 71.35 crore for setting up a new manufacturing facility (“Unit 4”) in Surat to increase grey fabric production capacity.
- INR 26.50 crore for incremental working capital requirements.
- Balance towards general corporate purposes.
Beeline Capital Advisors is the sole Book Running Lead Manager (BRLM) to the issue, while KFin Technologies is the designated registrar.
Company Snapshot
Founded in Surat, Gujarat, Borana Weaves specializes in unbleached synthetic grey fabric, a core input for multiple end-use sectors such as fashion, home textiles, and industrial applications. The company also manufactures polyester textured yarn (PTY), a value-added derivative of partially oriented yarn (POY).
Borana currently operates three manufacturing units with an infrastructure of 700 water jet looms, 15 texturizing machines, and 6 warping machines. Its client base spans several Indian states, including Gujarat, Rajasthan, Delhi, West Bengal, and Haryana.
Financial Performance
Borana Weaves has shown robust financial growth over the past three years:
- Revenue surged from INR 42.33 crore in FY22 to INR 199.06 crore in FY24.
- Net profit increased from INR 1.80 crore in FY22 to INR 23.59 crore in FY24, with a margin expansion from 4.25% to 11.85%.
- For the 9 months ending Dec 2024, revenue stood at INR 211.62 crore with net profit of INR 29.31 crore, pushing margins to 13.85%.
Valuation Metrics
- EPS (FY24): INR 11.85
- PE Ratio (Pre-IPO): 17.29–18.22
- PE Ratio (Post-IPO projected): 13.95–14.70
- Return on Net Worth (FY24): 49.77%
- Debt-to-Equity: Reduced significantly from 15.10 (FY22) to 1.45 (FY24)
Market Buzz: Grey Market Premium (GMP)
The IPO has generated positive traction in the grey market with a reported GMP of INR 56 to 65 per share over the past few days. As of 20 May 2025, the GMP stood at INR 56 per share, indicating a potential listing price of around INR 272 per share, reflecting strong investor sentiment.
Conclusion
With a strong anchor book, aggressive expansion strategy, solid financials, and positive investor sentiment, Borana Weaves appears well-positioned for a successful debut on the bourses. The IPO opens today and will remain open till 22 May 2025, with listing expected on 27 May 2025.
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