Surat-based textile manufacturer, Borana Weaves, has received the much-anticipated approval from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO). SEBI gave its observation letter on 7 March 2025.
Borana Weaves IPO Details
Borana Weaves filed its DRHP with SEBI on 16 November 2024 to raise a fresh issue of 70,00,000 equity shares of face value INR 10 each. The company is being managed by Beeline Capital Advisors Private Limited as the Book Running Lead Manager (BRLM).
Expansion Plans and Utilization of IPO Proceeds
Borana Weaves will utilize the net proceeds from the IPO to expand its manufacturing capacity and to meet its working capital requirements. As per the DRHP, the company plans to set up a new manufacturing unit in Surat, Gujarat for INR 71.35 crore and INR 26.50 crore for incremental working capital. A portion of the proceeds will also be for general corporate purposes.
Borana Weaves IPO: Business Overview
Established in 2020, Borana Weaves is engaged in the manufacturing of unbleached synthetic grey fabric which is used in industries like fashion, technical textiles, home décor and interior design. The company also produces Polyester Textured Yarn (PTY Yarn) which is a key input in synthetic textile production.
The company operates from three manufacturing units in Surat, Gujarat, and has invested in the latest textile manufacturing technologies like texturizing, warping, water jet looms and textile folding. As of 30th September 2024, the company had 15 texturizing machines, 6 warping machines, 700 water jet looms and 10 folding machines in operation.
Borana Weaves IPO: Financial Performance
Borana Weaves has seen impressive growth in recent years. The company has CAGR of 116.84% in the last 3 years.
Key financial highlights include:
- Revenue: INR 199.06 crore in FY 2024, INR 135.40 crore in FY 2023, and INR 42.33 crore in FY 2022
- Profit After Tax: INR 23.59 crore in FY 2024, up from INR 16.30 crore in FY 2023 and INR 1.80 crore in FY 2022.
- EBITDA Margin: Improved from 12.22% in FY 2022 to 20.68% in FY 2024.
Market Potential and Industry Outlook
India’s synthetic textile market is booming due to affordability, durability, and changing fashion trends. Domestic demand for polyester is expected to rise from 4 million tonnes to 6.7 million tonnes by 2025 and Borana Weaves is well positioned for future growth. The global man-made fibers market is also expected to grow at 3.7% by 2025 further boosting the company’s growth.
Listing and Next Steps
Once the IPO process is finalized, Borana Weaves plans to list its equity shares on the BSE and NSE. The company will now proceed with further regulatory filings and determine the IPO pricing and launch date in consultation with the BRLM. Now that SEBI has given its approval, Borana Weaves is ready to take the next big step in the markets. The upcoming IPO is expected to see good interest as the company has strong growth and synthetic textiles demand is growing in India and globally.
In the first two months of 2025, a total of 10 Mainboard IPOs were listed in the Indian markets. These IPOs cumulatively raised INR 15,983.05 crore. Out of these, 3 IPOs delivered negative returns. The average listing returns for the last two months stand at 17.53%. It is quite low compared to 29.15% for the IPOs listed in November and December 2024.
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