Borana Weaves Limited IPO Review: The Borana Weaves Limited initial public offering (IPO), which launches on May 20, 2025, and ends on May 22, 2025, intends to raise 144.89 crore by issuing 67.08 lakh equity shares at a price of 205–216 each. According to Business Today, the IPO has generated excitement with a grey market premium (GMP) of ₹60, indicating a potential 28% listing gain (estimated listing price: ₹276). It is tentatively scheduled to debut on May 27, 2025, and is listed on the BSE and NSE. With more than 100 million UPI users, 2 crore demat accounts, and a thriving textile industry that is expected to reach $102.2 billion by 2026, Borana Weaves, a Surat-based producer of unbleached synthetic grey cloth, presents a strong potential. But vigilance is necessary due to hazards including raw material volatility and geographical concentration.
This article helps retail investors, HNIs, and salaried professionals in Tier-2 towns like Surat or cities like Mumbai and Delhi make decisions on whether to subscribe or forego the Borana Weaves IPO by analysing its financials, strengths, risks, and expert ratings. It gives you the ability to match investments with objectives like wealth-building (10% CAGR) or financing houses (₹50 lakh+) thanks to its plethora of India-specific data, budgeting advice, and tools.
Key Information for Borana Weaves Limited’s IPO
- Dates of the IPO: May 20–22, 2025 (May 19, 2025, anchor bidding).
- Issuance Size: 67,08,000 equity shares (fresh issuance, no offer-for-sale, ₹144.89 crore).
- Share price range: ₹205–₹216 (face value: ₹10).
- Lot Size: 69 shares; at ₹216, the minimum retail investment is ₹14,904.
- Allocation: According to Business Today, the allocation is 75% QIB, 15% NII, and 10% retail.
- Market Cap: Market capitalisation (post-issue): ₹575.54 crore.
- Listing: (tentative: May 27, 2025): BSE, NSE.
- Lead Manager: Beeline Capital Advisors Pvt Ltd is the lead manager.
- Registrar: Kfin Technologies Limited is the registrar.
- GMP: According to Groww, GMP was ₹60 on May 20, 2025, which indicates a 28% listing gain (₹276/share).
- Subscription (Day 1): According to Livemint, the overall subscription (Day 1) was 8.54x (Retail: 25x, NII: 6.3x, QIB: 2%).
Context: According to the RBI, retail investors in Gujarat, which produces 90% of India’s synthetic fabric, and metro areas utilise Groww or Zerodha to apply via UPI/ASBA, with the Sensex trading at 82,530.74 and more than 17,000 SBI offices offering demat accounts.
Goal: According to RHP, the money would be used for general corporate objectives, working capital (₹26.50 crore), and a new production facility in Surat (₹71.35 crore).
Overview of the Company: Borana Weaves Limited
Based in Surat, Gujarat, Borana Weaves was established in 2020 and specialises in polyester textured yarn (PTY) and unbleached synthetic grey fabric, which are essential components for interior design, fashion, home décor, and technical textiles. According to Business Today, it serves 204 clients (mainly wholesalers in Gujarat, plus Rajasthan, UP, and Haryana) through three production facilities that have 15 texturising machines, 6 warping machines, 700 water jet looms, and 10 folding machines.
- Revenue Growth: According to Livemint, revenue increased from ₹42.36 crore in FY22 to ₹199.60 crore in FY24, or ₹215.71 crore (9M FY25).
- Net Profit: ₹29.31 crore (9M FY25); ₹23.59 crore (FY24) compared to ₹16.30 crore (FY23).
- EBITDA margin: According to SMIFS, the greatest EBITDA margin among peers was 21% in FY24.
- ROE/ROCE: according to Business Standard, 49.45% and 36.29% (FY24).
- P/E ratio: Per Lakshmishree Investment, the P/E ratio is 18.26x, which is appropriate when compared to rivals.
Context: According to Business Standard, Borana takes advantage of Surat’s role as a textile powerhouse, as the country’s polyester demand is expected to reach 6.7 million tonnes by 2025 and the demand for man-made fibre is expected to rise at a rate of 3.7% globally. According to Upstox, promoters (including Mangilal Ambalal Borana and Ankur Borana) provide more than 24 years of experience.
The Borana Weaves IPO’s advantages
Robust Financial Development:
- According to Livemint, capacity expansion and 204 customers drove a revenue CAGR of over 117% from FY22 to FY24.
- According to Business Today, profit increased from ₹23.59 crore (FY24) to ₹29.31 crore (9M FY25).
- High margins: according to SMIFS, 21% EBITDA, 49.45% ROE, and 36.29% ROCE (FY24).
Strategic Growth:
- According to Arihant Capital, the new Surat operation would increase capacity to 34.6 crore meters with a revenue growth objective of 20–30%.
- According to Business Standard, investments in folding machines and water jet looms increase productivity.
Industry Winds:
- According to Liquide, the Indian clothing industry is expected to increase from $74.5 billion in 2022 to $102.2 billion in 2026.
- According to Business Today, Surat produces 90% of India’s synthetic textiles, which fuel demand and affordability.
Attractive valuation:
- According to Lakshmishree, a P/E of 18.26x is appropriate (compared to peers like Siyaram Silk, which have a 22x).
- According to Livemint, the P/BV was 5.63 before the IPO and 2.60 after.
- According to Groww, a robust GMP of ₹60 (28% premium) indicates a listing price of ₹276 and ₹4,140 profit per lot.
Broking Assistance:
- SMIFS: According to Business Standard, “Subscribe” for strong profits and growth.
- According to Business Today, Anand Rathi: “Subscribe for long-term” because of regional presence.
- According to an X post, Tradeswift: “Subscribe for listing gains.”
Context: According to AMFI, retail investors with more than two crore SIP accounts in Bangalore and rural Gujarat view Borana as a bet on the country’s textile growth and use Angel One for IPO applications.
Considerations for Risks
Concentration by Region:
- According to Upstox, the majority of clients and suppliers (such as POY yarn from RB Industries and R&B Denims) are headquartered in Gujarat and run the danger of being disrupted by natural catastrophes or changes in regulations.
- According to Economic Times, little export reach (concentration on domestic distributors).
The volatility of raw materials
- According to Upstox, relying on POY yarn from promoter-group companies runs the risk of supply or pricing problems.
- According to Gaurav Garg of Lemonn Markets, changes in the price of polyester throughout the world have an effect on margins.
Restricted Experience in Operations:
- According to Arihant Capital, Borana was founded in 2020 and does not have the same track record as its counterparts, such as Siyaram Silk.
- lowest market share, according to SMIFS, among peers.
Rich Estimates:
- According to Business Today, a P/E of 18x is reasonable but not inexpensive when compared to the whole market (Nifty 50: 15x).
- According to Livemint, a high retail subscription rate (25x on Day 1) raises the probability of post-listing volatility.
Minimal Retail Quota:
- According to Business Standard, only 10% for retail compared to 75% QIB reduces the likelihood of allocation.
- According to Livemint, oversubscription (8.54x on Day 1) reduces the likelihood of retail allocation.
Market Attitude:
- According to Economic Times, listing may be impacted by Sensex volatility (82,530.74, May 2025) and the Q4 results season.
- According to X report, several experts have rated the anchor book (₹65.2 crore) as “not satisfactory.”
Context: According to the RBI, investors in Tier-2 cities like Jaipur, which depend on SBI’s 17,000+ branches, have trouble getting resources since they require Hindi-language tools like Groww.
Analysis of Finances
- Revenue: according to Livemint, ₹199.60 crore (FY24) compared to ₹135.53 crore (FY23); ₹215.71 crore (9M FY25).
- PAT: ₹29.31 crore (9M FY25); ₹23.59 crore (FY24) compared to ₹16.30 crore (FY23).
- EPS: according to Livemint, ₹8.77 (three-year average).
- ROE: According to SMIFS, ROE was the highest among peers at 49.45% (FY24).
- Expenditure: According to Business Standard, expenditure was ₹179.39 crore (9M FY25); ₹171.21 crore (FY24, +48.1% YoY).
- P/E: 18.26x, according to Lakshmishree (compared to peers: 20–25x).
- NAV: according to Livemint, ₹38.40 before the IPO and ₹83.11 after.
Context: According to the NSE, investors in Pune evaluate Borana’s metrics on Screener.in, which correspond with the Nifty 50’s 15% CAGR objective, with ₹6.81 lakh crore in digital transactions.
Should You Skip or Subscribe?
Motives for Subscribing
- Short-Term Gains: According to Groww, a GMP of ₹60 indicates a 28% listing gain (₹4,140 per lot), which is attractive to flippers.
- Long-Term Potential: According to Arihant Capital, capacity expansion and textile development (6.7 million tonnes of polyester are expected by 2025) support 20–30% revenue growth.
- Strong financials: according to SMIFS, a high ROE (49.45%), an EBITDA margin of 21%, and a fair P/E ratio of 18x.
- Broking Support: According to Business Today, SMIFS, Anand Rathi, and Tradeswift advise “Subscribe.”
- Cost-effective: according to Zerodha, a minimum investment of ₹14,904 is appropriate for individual investors, whose annual pay ranges from ₹5 to 10 lakh.
Context: According to Forbes India, professionals in Mumbai apply through Paytm for listing gains (savings: ₹10,000/month).
Reasons for Skipping
- Low Allotment Odds: According to Livemint, a 10% retail quota and a 25x subscription lower possibilities.
- Regional risks: According to Upstox, regional risks include activities focused on Gujarat and reliance on suppliers.
- Volatility risks: According to Economic Times, volatility risks include changes in the price of raw materials and the Sensex.
- Limited Track Record: According to Arihant Capital, the company has only been in business for five years, compared to competitors like Siyaram Silk, which has been in business for forty or more.
- Anchor Concerns: According to X post, a weak anchor book indicates cautious institutional interest.
Context: According to the RBI, risk-averse investors in Bihar who use SBI branches can like FDs (7.25%) or SGBs (2.5% yield).
Expert Opinion
- Short-Term (Listing Benefits): Sign up. According to Business Today, GMP (₹60) and 8.54x subscription suggest a 25–28% pop. Use Zerodha to apply at the cutoff (₹14,904), but be prepared for a small allocation.
- Long-Term (1–3 Years): Use caution when subscribing. According to Gaurav Garg of Lemonn Markets, growth prospects (20–30% sales) and high ROE are promising; nevertheless, keep an eye on raw material concerns and expansion execution.
- Investors that are risk averse: skip. According to ClearTax, safer solutions like FDs or SGBs are preferred due to low retail quota, geographical hazards, and market volatility.
Context: According to AMFI, students in Delhi (saving ₹10,000) aim for listing returns, whereas HNI investors in Surat (investing ₹2–10 lakh) subscribe for long-term textile growth.
Tips for Investments and Budgeting
Depending on your interest in IPOs, here’s how to approach the Borana Weaves IPO on a budget (₹10,000–₹50,000):
1. Use a Strategic Approach
- How: According to Business Today, bid at the cut-off price of ₹216 per share or ₹14,904 per lot using Zerodha or Upstox with UPI/ASBA.
- For instance, one deal costs ₹14,904; the possible profit is ₹4,140 (28% GMP). In accordance with Livemint, apply for 13 lots (₹1,93,752) if HNI.
- Advice: According to Groww, check the allocation status on Kfintech’s webpage (May 23, 2025).
Context: According to the RBI, SBI NetBanking is used by Bangalore retail investors for ASBA.
2. Apply the Rule of 50/30/20
- Rent (₹15,000), EMI (₹10,000), and food (₹5,000) make up 50% of needs.
- 30% of the wants are travel, OTT, and dining (₹7,500).
- 20% Investment/Savings: ₹5,000 (₹3,000 FD, ₹2,000 IPO).
Example Plan (Monthly Salary: ₹50,000):
- Requirements: ₹25,000 for utilities and rent.
- Desires: ₹15,000 for lifestyle.
- Savings: ₹10,000 (₹2,000 emergency money, ₹3,000 SBI FD at 7%, and ₹14,904 for one Borana lot).
- Result: According to ClearTax, ₹4,140 listing gain (if granted) finances short-term objectives.
- According to Forbes India, use Moneycontrol’s Budget Planner.
Context: According to AMFI, families in Patna (savings: ₹10,000/month) apply through CSC facilities.
3. Spread Out Your Investments
- Why: According to Economic Times, IPO volatility (25 times retail subscription) need balance.
- How: Set aside 10% for initial public offerings (IPOs), 30% for equities (TCS, HAL), 30% for mutual funds, and 30% for foreign direct investments (FDs) (PNB: 7.25%).
- For instance, a ₹50,000 budget would include ₹14,904 for the Borana IPO, ₹15,000 for HAL, ₹15,000 for Quant Small Cap Fund, and ₹5,096 for FD.
- NSE India’s Market Watch is a good resource for stock recommendations.
Context: According to Forbes India, joint families in Uttar Pradesh use Groww to diversify for objectives like weddings (₹10–20 lakh).
4. Keep an eye on subscriptions and GMP
- According to Business Today, track: GMP (₹60, 28% rise) and subscription (8.54x on Day 1) using Groww or IPOwatch.in.
- Advice: According to Livemint, a high retail subscription rate (25x) indicates high demand but limited allocation; lower expectations.
Context: According to AMFI, rural investors in Rajasthan benefit from Hindi applications like Angel One.
5. Manage Risks
- Sell if the listing price falls below ₹250, which is 15% less than the GMP forecast, according to HDFC Securities.
- Research: According to Forbes India, follow Pranjal Kamra or CA Rachana Ranade on YouTube.
- Advice: According to ClearTax, consult SEBI-registered experts through Vakilsearch (₹2,000–₹5,000).
Context: According to the RBI, rural investors in Bihar seek advice from PNB’s 7,000+ branches.
Resources and Tools
- IPO Trackers: Groww, Chittorgarh.com, and IPOwatch.in for GMP/subscription.
- Platforms for applications: Paytm for UPI/ASBA, Upstox, and Zerodha.
- Financial Analysis: Tickertape and Screener.in for metrics.
- Calculators: according to BankBazaar, the Investment Calculator.
- Learning resources: include YouTube (Ankur Warikoo), SEBI, and NSE India.
- Community: According to Reddit, the community is r/IndiaInvestments, Zerodha Varsity.
Context: According to the RBI, accessibility is guaranteed by more than 17,000 bank branches (SBI, PNB) and 100 crore UPI users.
Conclusion
According to Business Today, the ₹205–₹216 Borana Weaves Limited IPO makes a good case with a 28% GMP (₹276 listing estimate) and solid financials (49.45% ROE, 21% EBITDA), supported by India’s textile expansion ($102.2 billion by 2026). According to Arihant Capital, you can subscribe for short-term listing gains (₹4,140 per lot) through Zerodha or keep for a long-term revenue rise of 20–30%. However, regional hazards, raw material volatility, and low retail allocation (10%) all point to caution; if you’re risk averse, steer clear and choose FDs (7%) or SGBs (2.5%), according to ClearTax. Apply before May 22, 2025, to take advantage of this textile play, but diversify with mutual funds and stocks (HAL, TCS), since the Sensex is aiming for 90,000 and there are more than 2 crore demat accounts. Take action right now to meet your financial objectives!
Call to Action: Share your plan in comment, follow GMP on Groww, and apply for the Borana Weaves IPO on Upstox!
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