Borana Weaves IPO Starts Today: The much-anticipated Borana Weaves IPO has officially opened for subscription today, May 20, 2025, stirring significant excitement across India’s investment landscape. As one of the most talked-about offerings in the textile sector this year, it’s drawing attention from both retail investors and institutional players. Whether you’re an experienced trader looking for quick listing gains or a long-term investor assessing value and scalability, understanding the price band, lot size, and Grey Market Premium (GMP) can help you make an informed decision.
In this comprehensive article, we’ll break down every important aspect of the Borana Weaves IPO, provide expert insights, and share practical tips to help you decide whether to invest. Our aim is to provide clarity and confidence as you consider this opportunity.
Borana Weaves IPO Starts Today
| Feature | Details |
|---|---|
| IPO Name | Borana Weaves Limited IPO |
| IPO Open Date | May 20, 2025 |
| IPO Close Date | May 22, 2025 |
| Price Band | ₹205 – ₹216 per share |
| Lot Size | 69 shares |
| Minimum Investment | ₹14,904 (at upper band) |
| Issue Size | ₹144.89 crore (Fresh issue of 67.08 lakh shares) |
| Listing Date | May 27, 2025 |
| GMP (Grey Market Premium) | ₹55 – ₹60 |
| Registrar | KFin Technologies |
| Lead Manager | Beeline Capital Advisors Pvt. Ltd. |
| Official Website | boranaweaves.com |
The Borana Weaves IPO stands out with its strong fundamentals, scalable infrastructure, and market enthusiasm. For investors seeking a solid short-term gain or those looking to hold shares in a growth-oriented textile business, this IPO presents a compelling opportunity.
However, it’s essential to do your own due diligence. Read the red herring prospectus, assess your risk tolerance, and understand your financial goals before investing.
What is Borana Weaves and Why This IPO Matters
Borana Weaves Limited is a rising star in India’s textile manufacturing sector. Headquartered in Surat, Gujarat, the company was founded in 2020 and has quickly grown into a major supplier of unbleached synthetic grey fabric and polyester textured yarn (PTY yarn). These are vital raw materials in the production of garments, home furnishings, and industrial textiles.
The company has invested significantly in infrastructure and now operates three state-of-the-art facilities, housing over 700 water jet looms. These high-speed machines are essential for efficient, high-volume production. This capacity has positioned Borana Weaves as a reliable supplier for both domestic and international textile markets.
Why Investors Are Interested
With a Return on Net Worth (RoNW) of 64% and a net profit of ₹29.31 crore in the first 9 months of FY25, Borana Weaves exhibits strong operational and financial fundamentals. Moreover, an annualized Price-to-Earnings (P/E) ratio of just 14.73x makes it more attractive compared to many of its industry peers.
The IPO proceeds will be used for capacity expansion, working capital, and general corporate purposes, all aimed at accelerating growth.
Deep Dive into the IPO Price Band and Lot Size
The price band is the range within which investors can place their bids. For Borana Weaves, it’s between ₹205 to ₹216 per share. This gives you the flexibility to bid at a price you’re comfortable with, though bidding at the upper end increases allotment chances.
- Minimum Lot Size: 69 shares
- Minimum Investment (at ₹216): ₹14,904
Real-World Example:
Suppose you want to apply for two lots. That means buying 138 shares. At the upper price band of ₹216, your total investment would be ₹29,808. This low entry point compared to large-cap IPOs makes Borana Weaves accessible for small investors and first-time IPO applicants.
Understanding Grey Market Premium (GMP) – What It Really Means
The Grey Market Premium (GMP) refers to the price at which shares are being traded in the unofficial market before listing. It’s often seen as a barometer of market sentiment and investor appetite.
Current GMP:
As of May 21, 2025, the GMP for Borana Weaves is hovering between ₹55 to ₹60. This implies an expected listing price of around ₹271 to ₹276, which represents a potential gain of 25% to 28%.
Should You Rely on GMP?
While GMP offers useful insights, it is not regulated and can be volatile. Use GMP as a secondary tool, not the sole reason for applying. Always review the company’s fundamentals, risk factors, and the red herring prospectus before making a decision.
Borana Weaves Financial Performance: A Closer Look
The company’s financial statements reflect healthy growth and operational efficiency:
- Total Revenue (Apr-Dec FY25): ₹215.71 crore
- Net Profit (Apr-Dec FY25): ₹29.31 crore
- Earnings Per Share (3-year average): ₹8.77
- Return on Net Worth (average): 64%
Compared with other listed textile players, Borana Weaves demonstrates a strong profit margin and efficient capital deployment. These factors significantly enhance its appeal to institutional and retail investors alike.
Expert Reviews and Market Sentiment
Top brokerages and investment advisors have weighed in with generally positive feedback. Bajaj Broking, in particular, has advised clients to subscribe for both listing gains and long-term returns.
Analyst Endorsements:
- Efficient Cost Management: Borana Weaves has demonstrated control over operational expenses.
- Scalable Infrastructure: The company’s modern machinery supports its growth ambitions.
- Healthy Cash Flow: A positive signal for future dividend payouts or reinvestments.
Risks to Note:
- Volatility in Raw Material Prices: As with most textile businesses, raw material costs can fluctuate.
- Geographical Concentration: A majority of operations are limited to Gujarat.
- Product Line Dependency: Limited diversification could be a vulnerability if market conditions shift.
Overall, the market sentiment is bullish, especially among retail participants who anticipate strong short-term returns.
How to Apply for the Borana Weaves IPO
Applying for an IPO has become straightforward with the rise of digital trading platforms. Here’s how you can apply easily:
Application Process:
- Log in to your online trading account (e.g., Zerodha, Upstox, Groww)
- Navigate to the IPO section in the app or website
- Select Borana Weaves Limited IPO
- Enter the number of lots and bid price (consider bidding at the upper band for better chances)
- Enter your UPI ID
- Accept the UPI mandate from your bank app
- Wait for confirmation of your application
Important Dates:
- Allotment Date: May 23, 2025
- Listing Date: May 27, 2025
If you don’t get an allotment, your funds will be refunded automatically within 2-3 business days.
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FAQs About Borana Weaves IPO Starts Today
Is it a good idea to invest in Borana Weaves IPO?
Yes, if you’re looking for potential listing gains and can accept the associated market risks. The company’s financials and market buzz support a positive outlook.
How much profit can I expect on listing day?
While nothing is guaranteed, the current GMP suggests a gain of up to 28% on the issue price.
How will I know if I received allotment?
Visit KFin Technologies after the allotment date and enter your PAN or application ID to check the status.
Can I apply for this IPO through my mobile phone?
Absolutely. Most leading brokers offer seamless IPO applications through mobile apps.
What if the IPO is oversubscribed?
If demand exceeds supply, allotment will be based on a lottery system. Not getting shares means your blocked funds will be released automatically.
