Borana Weaves IPO: A Strategic Move Into The Synthetic Textile Market

Borana Weaves Limited, a textile manufacturer based in Surat, is set to launch its Initial Public Offering (IPO) on May 20, 2025. The company specializes in producing unbleached synthetic grey fabric, catering to both domestic and international markets. Through this IPO, Borana Weaves aims to raise approximately ₹145 crore. The public issue will consist entirely of a fresh issue of 6.7 million equity shares, each carrying a face value of ₹10.

The IPO will remain open for subscription for three days, closing on May 22, 2025. The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), providing wider access and liquidity for investors. The proceeds from the offering are expected to be utilized for capacity expansion, working capital requirements, and general corporate purposes.

This public issue marks a significant milestone for Borana Weaves, signaling its transition from a privately held entity to a publicly listed company. With a strong presence in the synthetic textile segment, the company aims to leverage the funds raised to enhance its production capabilities and strengthen its market position. Investors will be closely watching the subscription figures and listing performance following the IPO.

Company Overview:

Established in 2020, Borana Weaves has rapidly expanded its operations, now operating three manufacturing units in Surat. The company specializes in producing unbleached synthetic grey fabric, a versatile material used in various industries, including fashion, home décor, and technical textiles. In addition to grey fabric, Borana Weaves manufactures polyester textured yarn, which serves as a raw material for its fabric production.

Financial Performance:

Borana Weaves has demonstrated significant growth since its inception. For the fiscal year ending March 31, 2024, the company reported:

Revenue: ₹199 crore
EBITDA: ₹41.17 crore
Profit After Tax (PAT): ₹23.59 crore

In the six months ending September 30, 2024, the company reported

Revenue: ₹133 crore
EBITDA: ₹27.94 crore
PAT: ₹17.9 crore

These figures reflect a robust growth trajectory, underpinned by strategic investments in technology and capacity expansion.

Utilization of IPO Proceeds:

The funds raised through the IPO will be utilized as follows:

Establishment of a new manufacturing unit: ₹71.35 crore
Incremental working capital requirements: ₹26.5 crore
General corporate purposes: The remaining funds will be allocated to general corporate purposes.

Key Dates:

IPO Opening Date: May 20, 2025
IPO Closing Date: May 22, 2025
Allotment Date: May 27, 2025
Listing Date: May 30, 2025
Issue Size & Share Price:
Issue Size: ₹145 crore (fresh issue)
Face Value: ₹10 per equity share
Price Band: To be announced (TBA)
Lot Size: TBA

The final price band and lot size will be determined by the company in consultation with the Book Running Lead Manager (BRLM), Beeline Capital Advisors Private Limited.

Conclusion:

Borana Weaves’ upcoming IPO represents a significant step in the company’s growth strategy, providing the necessary capital to expand its manufacturing capabilities and meet the growing demand in the synthetic textile market. With a strong financial track record and a clear plan for utilizing the IPO proceeds, Borana Weaves is well-positioned to capitalize on the opportunities in the textile industry.