As Borana Weaves prepares to launch its IPO next week, investors are presented with a unique opportunity to participate in the growth journey of one of India’s fastest-growing textile manufacturers. With a niche focus on unbleached synthetic grey fabric and a robust financial track record, Borana Weaves is stepping into the public market amid a wave of interest in mid-sized manufacturing firms showing strong profitability and regional dominance.
Here’s a deep dive into the key aspects of the company, the IPO details, financial metrics, growth strategy, and whether it’s a stock worth considering for your portfolio.
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Borana Weaves IPO Details
✅Opening Date: 20 – 22 May 2025
✅Issue Type: Fresh Issue
✅Total Offer Size: 67,08,000 shares (INR 137.51 – 144.89 crore)
✅Listing Exchanges: NSE and BSE
✅Lead Manager: Beeline Capital Advisors
✅Registrar: KFIN Technologies
There is no offer for sale (OFS), meaning all proceeds will directly benefit the company’s growth plans, a positive sign for investors looking at capital utilization efficiency.
Use of IPO Proceeds
Borana Weaves plans to utilize the net proceeds primarily for:
- Establishing a fourth manufacturing unit in Surat – INR 71.35 crore
- Incremental working capital requirements – INR 26.50 crore
- General corporate purposes
Borana Weaves IPO – Business Overview
Established in 2020 and based out of Surat, Gujarat, Borana Weaves is a vertically integrated textile company that deals in unbleached synthetic grey fabric which is a key input in various downstream industries like fashion, home décor, technical textiles and interior design.
Borana’s focus on synthetic textiles is in line with the macro trends: India’s polyester demand is expected to grow from 4 million tonnes to 6.7 million tonnes by 2025 due to affordability, durability and fast evolving fashion trends.
Key Highlights of Borana Weaves IPO
- Manufacturing Units: 3 fully operational units in Surat, with Unit 4 under development
- Machines in Operation (as of December 2024):
- 700 water jet looms
- 15 texturizing machines
- 6 warping machines
- 10 folding machines
- Utilization Rates:
- Unit 1: 98.01% (H1 FY25)
- Unit 2: 62.84%
- Unit 3: 82.98%
This high utilization, especially at Unit 1 and the ramp-up at Unit 3, highlights the company’s operational efficiency and ability to scale quickly.
Borana Weaves IPO – Financial Performance
Borana Weaves has clocked an astounding 370% revenue growth in just three years, emerging as one of the fastest-scaling players in India’s synthetic fabric industry.
| FY 2022 | FY 2023 | FY 2024 | 9M FY 2025 | |
| Revenue | 42.33 | 135.40 | 199.06 | 211.62 |
| Expenses | 40.17 | 115.63 | 171.21 | 179.40 |
| Net income | 1.80 | 16.30 | 23.59 | 29.31 |
| Margin (%) | 4.25 | 12.04 | 11.85 | 13.85 |
| ROCE (%) | 12.23 | 34.93 | 27.42 | 27.11 |
| EBITDA (%) | 12.22 | 19.25 | 20.68 | 21.75 |
| RoE (%) | 99.45 | 67.61 | 49.45 | 38.16 |
| Debt/Equity | 15.10 | 1.61 | 1.45 | 0.70 |
Notably, the company has managed to maintain high EBITDA and PAT margins, which outpace many industry giants.
Peer Comparison: Punching Above Its Weight
| Revenue (INR Cr) | EBITDA Margin (%) | PAT Margin (%) | |
| Jindal Worldwide | 1,86,142.4 | 8 | 4 |
| Vardhman Textiles | 9,299.0 | 14 | 7 |
| Arvind Ltd. | 7,100.5 | 11 | 4 |
| KPR Mill | 4,053.7 | 20 | 14 |
| Borana Weaves | 199.1 | 21 | 12 |
Despite being significantly smaller in scale, Borana Weaves has superior operating margins compared to many large players, a testament to its capital-efficient, tech-driven model.
Customer Base and Concentration
The company had 170 customers in FY 2024 and revenue of INR 199.06 crore. But top 10 customers contributed 54.75% of the revenue in FY 2024 as against 79.65% in FY 2022—indicating diversification.
Geographic Footprint:
While currently concentrated in Gujarat (98.05% of H1 FY25 sales), Borana is beginning to expand to states like Rajasthan, Haryana, Delhi, West Bengal, and Uttar Pradesh.
Key Strengths
✅Focused Niche Market: Borana Weaves’ concentration on grey fabric gives it deep market understanding and production efficiency.
✅Advanced Machinery: 700 water jet looms provide scalability and fabric uniformity, critical for downstream textile applications.
✅Vertical Integration: With in-house spinning and texturizing, Borana reduces dependency on third parties and controls quality.
✅Tech-Driven Growth: Automation and pollution-light machinery make production cost-effective and environmentally sustainable.
Risks and Challenges
- The funding plan for the company does not include any external appraisal for INR 71.35 crore for Proposed Unit 4 and is based on internal estimates.
- The cost for Proposed Unit 4 is based on a Dun & Bradstreet report dated 12 November 2024 which is based on vendor quotations provided by the company without any verification.
- Any cost overruns or delay in Surat expansion can impact financials, cash flows and overall growth.
- Promoters and group members have given personal guarantees of INR 87.08 crore; revocation can trigger loan recall or more stringent financing terms.
- INR 0.23 crore of unsecured loans are repayable on demand and can create liquidity risk if repayment is enforced suddenly.
- INR 62.20 crore of outstanding loans have restrictive covenants which can limit operational flexibility in areas like business changes, dividends or ownership structure.
- The company has INR 9.82 crore of contingent liabilities by way of bank guarantees which can impact financial stability if they materialize.
- The company has had negative cash flows in the past (e.g. -INR 48.07 crore in FY 2024) which can impact funding of operations and growth.
- High capex of INR 49.55 crore in FY 2024 will require sustained financing which may not be available at reasonable terms.
Capacity Expansion: Roadmap to Growth
Borana Weaves plans to scale from 226.8 million meters in FY 2024–25 to 311.36 million meters in FY 2025–26 and 339.55 million meters by FY 2026–27.
| Machines | Installed Capacity (Mn Meters) | |
| FY 2024–25 | 700 | 226.8 |
| FY 2025–26 | 1,048 | 311.36 |
| FY 2026–30 | 1,048 | 339.55 (annual) |
The upcoming Unit 4 is central to this strategy and is expected to become operational in FY 2025–26.
Investment Verdict
Pros:
- Industry-leading margins (EBITDA and PAT)
- Fastest-growing textile company in its segment (CAGR of 116.84% over three years)
- Modern, scalable operations in India’s textile heartland
- Strong promoter background and vertically integrated model
Cons:
- Limited national and no international footprint (yet)
- Customer concentration still a moderate concern
- IPO pricing risk as the final valuation band is awaited
Final Words for Borana Weaves IPO
Borana Weaves presents a compelling growth story rooted in solid financials, operational excellence, and smart capacity expansion. Its entry into public markets gives investors a rare chance to invest early in a high-margin manufacturing company with a niche market edge.
For medium- to long-term investors looking to tap into India’s synthetic textile boom and willing to weather short-term volatility, Borana Weaves could be a promising addition to the portfolio.