Borana Weaves IPO, listed on the mainboard at ₹243 price with a premium of 12.50%

Borana Weaves Limited is an emerging company in the textile manufacturing industry. The company has launched an Initial Public Offering from the period May 20 to May 22, 2025. The company is based out of Surat, Gujarat, where it produces unbleached synthetic grey fabric and polyester textured yarn. These materials are used in different categories, like clothes, home items like curtains and sofas, and also in factories for different purposes.

In a short time, Borana Weaves has already grabbed an excellent reputation through its modern machinery and well-managed plants. Hence, the IPO will help in the further upward growth of the company so that it can reach more customers throughout the country.

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Borana Weaves IPO Listing Details

The IPO price band for Borana Weaves Limited is set between ₹205 to ₹216 per share. The minimum application size is 69 shares, so retail investors need to invest at least ₹14,145 at the lower end or ₹14,904 at the upper end of the price band.

Listing Price: Borana Weaves IPO shares price is listed on the mainboard platform on May 27, 2025, at ₹243, with an estimated market capitalisation of around ₹575.54 crore.

Investor Sentiment: Investors are showing interest in this IPO due to the company’s strong ROE of 49.45% and steady growth in the textile sector.

First-Day Trading Performance Outlook

Borana Weaves Limited got listed at ₹243 per share. This price is compared to the IPO price band, which went up to ₹216. On the first day, the stock was actively traded. Many investors showed interest in the company. The strong listing shows that the market has a positive view of Borana Weaves and its business.

Market Sentiment and Analysis

Borana Weaves started in 2020 and has become well-known in the textile industry for making unbleached synthetic grey fabric and polyester textured yarn. The company’s consistent rise in revenue, strong profitability, and a high ROE of 49.45% have caught the attention of investors looking for growth in the fabric and textile sector.

Investor Response: With steady financial performance and modern production facilities, the IPO has gained interest from long-term investors, especially those looking to invest in manufacturing and textile businesses.

Growth Highlights: The company’s revenue grew from ₹42.36 crore in FY22 to ₹215.71 crore by December 2024. Net profit also improved from ₹1.80 crore to ₹29.31 crore in the same period, showing strong financial progress.
 

Growth Drivers and Challenges

Borana Weaves Limited has shown strong growth in a short time, backed by rising demand and efficient operations. However, like any growing company, it also faces some industry-related risks. Below are the key growth drivers and challenges that may impact its future performance.

Growth Drivers:

• High Demand: Grey fabric is widely used in fashion, home, and technical textiles.
• Modern Machinery: Uses water jet looms and texturising units for better quality.
• Financial Growth: Revenue grew from ₹42.36 Cr (FY22) to ₹199.60 Cr (FY24); profit grew from ₹1.80 Cr to ₹23.59 Cr.
• B2B Focus: Supplies fabric to textile businesses with regular demand.

Challenges:

• Rising Input Costs: Polyester yarn price changes may affect profits.
• Tough Competition: Many players in the textile market.
• New in Market: Started in 2020, still building experience.
• Demand Uncertainty: Market shifts or export issues may impact growth.

Utilisation of IPO Proceeds

Borana Weaves Limited plans to use the funds raised through the IPO for business growth and operational needs. The major areas where the money will be used are:

• New Manufacturing Unit: A large part of the funds (₹71.35 crore) will be used to set up a new unit in Surat to increase grey fabric production.
• Working Capital: ₹26.5 crore will be used to manage day-to-day business expenses and ensure smooth operations.
• General Corporate Purposes: The remaining amount will be used for regular business activities, improvements, and future planning.
   

Financial Performance of Accretion Pharmaceuticals

Borana Weaves Limited has shown strong financial performance over the past few years:

• Revenue Increase: The company recorded revenues of ₹215.71 crore till 31 December 2024, driven by rising demand for grey fabric and polyester yarn in the B2B textile market.
• Profitability Rebound:  It posted a profit of ₹29.31 crore up to December 2024, reflecting improved margins and better operational efficiency.
• Net Worth Strengthens: The net worth grew from ₹1.81 crore in FY22 to ₹76.55 crore as of December 2024, showing strong capital growth supported by rising profits and business expansion.

The textile company Borana Weaves Limited managed to develop quickly with strong revenues and profits and a very modern plant. The money from the IPO will help the company expand further. There are a few risks involved, but on the basis of its past performance, there seems to be good scope for long-term growth. On the other hand, investors who want to invest for steady growth in the manufacturing sector will find this IPO an ideal choice.