The initial public offering (IPO) of Borana Weaves received an enthusiastic response from investors on Day 1 of its bidding process, particularly from retail and high-net-worth individuals (HNIs). The issue opened for subscription on Tuesday, May 20, and will remain open until Thursday, May 22.
Priced in the range of ₹205–₹216 per share, investors can apply for a minimum lot of 69 shares and in multiples thereafter. The company aims to raise ₹144.89 crore through this IPO, which comprises a fresh issue of 67.08 lakh equity shares.
As of 1:45 pm on May 20, the IPO was already subscribed 4.81 times, with bids for 1,74,36,231 equity shares against the 36,89,457 shares available for subscription. The retail investor quota was oversubscribed 16.92 times, and the non-institutional investor (NII) portion saw a 6.30x subscription. However, the qualified institutional buyer (QIB) segment was subscribed only 2% at that time.
Founded in 2020 and based in Surat, Borana Weaves manufactures unbleached synthetic grey fabric, a foundational textile widely used in fashion, home decor, technical textiles, and traditional clothing industries. The company has carved out a niche in this space, serving as a critical supplier for further processing like dyeing and printing.
The grey market premium (GMP) for Borana Weaves shares has been trending upward due to strong demand despite volatile market conditions. The stock was last seen commanding a GMP of ₹60, suggesting a potential 28% listing gain. A day earlier, the premium hovered around ₹55.
Brokerage firms largely hold a positive outlook on the IPO, citing the company’s stronghold in synthetic fabrics, expansion plans, and superior return ratios (RoE and RoCE) as highlights. However, concerns have been raised around its rich valuations, limited market share, regional dependence, and vulnerability to raw material price fluctuations.
Gaurav Garg of Lemonn Markets Desk commented, “Borana Weaves’ IPO offers a compelling short-term opportunity, with strong listing gain potential driven by robust growth, healthy margins, and attractive GMP. While its integrated operations give it an edge, high regional concentration and raw material volatility remain key risks.”
Valued at a P/E of 17.5x, analysts believe the offering is reasonably priced, making it attractive for retail and HNI investors eyeing short-term gains. However, long-term investors may prefer to watch how the company executes its expansion plans before making a commitment.
Ahead of the IPO, Borana Weaves raised ₹65.20 crore from 11 anchor investors. The allocation structure reserves 75% for QIBs, 15% for NIIs, and only 10% for retail investors.
Beeline Capital Advisors is managing the issue as the sole book-running lead manager, while Kfin Technologies acts as the registrar. The share allotment is scheduled for Friday, May 23, and the tentative listing date is Tuesday, May 27, on both BSE and NSE.
