Borana Weaves, a Surat-based textile manufacturer specializing in unbleached synthetic grey fabric, has launched its Initial Public Offering (IPO) with strong investor interest. The IPO, which opened on May 20, 2025, aims to raise ₹144.89 crore through a fresh issue of 70 lakh equity shares.
📈 IPO Subscription Status & Grey Market Premium (GMP)
On the first day of bidding, the IPO witnessed an overwhelming response, being subscribed 8.5 times overall. Retail investors led the charge with a 25-fold subscription, followed by non-institutional investors at 12 times, and qualified institutional buyers at 1.6 times. Reflecting this enthusiasm, the grey market premium (GMP) surged to 28%, indicating strong market sentiment and anticipated listing gains.
🏭 Company Overview & Expansion Plans
Established in 2020, Borana Weaves has rapidly grown, operating three manufacturing units in Surat equipped with advanced machinery. The company produces unbleached synthetic grey fabric and polyester textured yarn, catering to industries like fashion, home décor, and technical textiles.
The IPO proceeds are earmarked for setting up a new manufacturing facility in Surat, costing ₹71.3 crore, to expand grey fabric production. Additionally, ₹26.5 crore will be allocated for incremental working capital requirements, with the remainder for general corporate purposes.
💰 Financial Performance
Borana Weaves has demonstrated robust financial growth. For the fiscal year ending March 31, 2024, the company reported revenue of ₹199 crore and a net profit of ₹23.59 crore. The first half of FY2025 continued this trend, with revenue reaching ₹133 crore and a net profit of ₹17.9 crore.
📊 Should You Apply?
Given the strong subscription numbers, healthy GMP, and the company’s solid financials, Borana Weaves’ IPO presents a compelling opportunity for investors. The company’s strategic expansion plans and position in the growing synthetic textile market further bolster its prospects. However, as with any investment, potential investors should assess their risk tolerance and investment goals before applying.