Borana Weaves IPO Anchor Allocation at 45.00%

Borana Weaves IPO received a strong anchor allocation response, with 45.00% of the total IPO size subscribed by anchor investors. Out of the 67,08,000 shares on offer, anchor investors were allocated 30,18,543 shares, demonstrating significant market confidence. The anchor allocation details were reported to the stock exchanges on May 19, 2025, just ahead of the IPO opening on May 20, 2025.

The book-built issue of ₹144.89 crores is entirely a fresh issue of 67,08,000 shares. The price band is set at ₹205 to ₹216 per share, with a face value of ₹10 per share. This includes a share premium of ₹206 per share at the upper end of the price band.

The anchor allocation process, which took place on May 19, 2025, saw robust participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹216 per share, highlighting strong demand and confidence in the company's growth potential.

After the anchor allocation, the overall allocation of the IPO looks as follows:

The lock-in period for anchor investors is a critical aspect of the allocation. For Borana Weaves IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): June 22, 2025
• Lock-in Period (Remaining Shares): August 21, 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, contributing to stock price stability post-listing.

Anchor Investors in Borana Weaves IPO

Anchor investors, typically large institutional investors, are allotted shares in an IPO before it opens to the public. The anchor allocation process plays a pivotal role in price discovery and instilling confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and influences the overall subscription levels.

On May 19, 2025, Borana Weaves IPO completed the bidding for its anchor allocation. A total of 30,18,543 shares were allotted to anchor investors at the upper IPO price band of ₹216 per share, resulting in an overall anchor allocation of ₹65.20 crore. This represents 45.00% of the total issue size of ₹144.89 crore, indicating robust institutional demand.
 

Borana Weaves IPO Key Details:

• IPO Size: ₹144.89 crores
• Shares Allocated to Anchors: 30,18,543
• Anchor Subscription Percentage: 45.00%
• Listing Date: May 6, 2025
• IPO Opening Date: April 28, 2025

About Borana Weaves and How to Apply

Incorporated in 2020, Borana Weaves Limited is a manufacturer of unbleached synthetic grey fabric based in Surat, Gujarat. The company's unbleached synthetic grey fabric is widely used as a base for further processing (including dyeing and printing) in industries such as fashion, traditional textiles, technical textiles, home decor, and interior design. The company also manufactures polyester textured yarn ("PTY Yarn"), which is produced by heating polyester oriented yarn ("POY Yarn"), their raw material used in the production of grey fabric. Borana Weaves operates three manufacturing units in Surat, Gujarat, equipped with advanced textile manufacturing technologies for texturizing, warping, water jet looms, and textile folding. As of September 30, 2024, the company had a total of 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines active across its three units. The company has demonstrated strong financial performance with significant growth in revenue and profitability, achieving a return on equity (ROE) of 49.45% and a return on capital employed (ROCE) of 27.42% for the fiscal year ended March 31, 2024. The company's shift from conventional processes to water jet loom processing has yielded significant benefits, contributing to their improved operational efficiency and financial performance.