Borana Weaves IPO Review – Should You Invest or Avoid?

The textile sector is once again bustling, with the latest participant looking to weave success with the Blues is Borana Weaves Limited. With the opening of the IPO on May 20, 2025, the company aims to procure 144.89 crores through completely fresh issues. With this details Borana weaves IPO The review covers everything from company overview to finance, competitiveness, risk, GMP (Gray Market Premium), and whether investors subscribe to this issue.

About Borana Weaves Limited

Founded in 2020, Borana Weaves Limited is based in Surat, Gujarat, and is engaged in the manufacture of unbleached synthetic grey fabrics and polyester textured yarns (PTY).

The company caters to multiple industries including fashion, traditional textiles, home decoration, interior design, and technical textiles. Three manufacturing units in Surathaus:

• 15 Texturing Machines
• 6 distortion machines
• 700 Water Jet Loom
• 10 folding machines

This vertical integration gives Borana better control over quality, cost and delivery schedules.

Borana weave IPO details

Competitiveness

1. Modern infrastructure: Three units are equipped with cutting-edge textile machines.
2. Experienced promoter: The Borana family has years of expertise in the textile business.
3. Diversification of products: Offering both grey fabric and Pty Yarn, the company offers flexibility and a wider market reach.
4. Operational efficiency:Sourcing and processing control allows for better margins.
5. Surat’s advantage: Being in a textile hub in India helps both procurement and logistics.

Financial Performance

Borana Weaves shows strong financial growth in the short term.

• Pat Margin:11.85%
• egg: 49.45%
• Loin:27.42%

This exponential growth demonstrates strong execution capabilities and product demand.

IPO objects

IPO revenue is used for:

1. Set up a new manufacturing unit in Surat – £71.35 cr
2. Working Capital Requirements – £26.5 cr
3. General business purposes

The expansion is expected to increase production capacity and drive future revenues.

Peer Comparison – Does Borana weave IPO ratings?

Borana Weaves’ IPO price bands range from £205-216 per share.

Analyze P/E (price-to-revenue) ratios based on different revenue perspectives.

• Considering the weighted average EPS £8.72 over the last three years, the P/E ratio is 24.8 to 26.2 times
• Considering the £11.83 FY24 EPS (March 2024), the P/E ratio is 17.3 to 18.3 times
• For the annual 10.99 pound nine-month EPS (December 2024), the forecast full-year EPS is around 14.65, with a P/E ratio of 14x to 14.7x

So let’s compare some of them Listed peers In textile and thread segments:

Compared to PEERS, Borana Weaves’ IPO ratings at P/E seem to be totally priced, considering it is a relatively new company. It’s not underestimated much, but it’s not very expensive. Investors may consider this IPO if they believe in the company’s expansion potential and growth trajectory.

Why invest in Borana Weaves IPOs?

✅ Strong revenue and profit growth over the past three years
It exists in high demand textile segments
Backward integration with huse internal thread generation
BULT plans to expand with new manufacturing units
▽High return ratio (ROE>45%)

Risk factors

⚠⚠️ High dependence on a single product category – Gray fabric forms the majority of revenue
⚠⚠️ Geographical concentration – All units in Surat. Operational risk remains centralized
⚠⚠️ Working capital intensive – Textile business needs high working capital, especially during peak season.
⚠⚠️ Dilution risk – EPS after issuance will drop significantly, temporarily affecting earnings per share
⚠⚠️ No previous market track record – Being a first-time publisher adds uncertainty

Grey Market Premium (GMP)

As of the latest update, the Borana Weaves IPO’s GMP is around 35-40 pounds per share, showing a 15-18% list gain forecast. However, GMP is informal and volatile.

How do I apply for a Borana Weaves IPO?

You can use the UPI through brokers or via platforms such as Zerodha, Grow, Upstox.

Steps:

1. Log in to the trading app
2. Go to the IPO section
3. Select “Borana Weaves IPO”
4. Bid at retail cutoff price (£216)
5. Check UPI Mandate

UPI confirmation cutoff time:5pm, May 22, 2025

Should I invest in a Borana Weaves IPO?

Borana Weaves demonstrates strong fundamentals, rapid growth and a clear expansion plan. Despite its short history, it efficiently expands its operations.

✅ High growth potential and strong financials
✅ Reasonable P/E vs. Peer (pre-published)
❌ Short operational history and high dilution

Highly risky investors can invest for long-term growth.

FAQ -Borana Weaves IPO

Q1. What is Borana Weaves IPO Price Band?
A: The price range is £205-216 per share.

Q2. What is the lot size for the Borana Weaves IPO?
A: Minimum 69 shares. Retail investments start at £14,904.

Q3. Are there any sales offers (OFS)?
A: No, that’s a 100% fresh question.

Q4. When will Borana weave the date of IPO allocation?
A: It is expected on May 23, 2025.

Q5. How is the company’s financial performance?
A: Revenue increased from 42 CR in FY22 to 215 CR (9M FY24). PAT has increased significantly.

Q6. Where are the stocks in Borana Weaves listed?
A: Both BSE and NSE.

Q7. What is the expected GMP for the Borana Weaves IPO?
A: 35-40 pounds per share (indicator, not official).

Disclaimer: This article is for purely educational and informational purposes only and should not be construed as investment advice. Investing in IPOs, especially start-ups, can be risky and not suitable for all investors. Consult with your financial advisor or investment consultant before making an investment decision. The authors and publishers are not liable for any financial losses arising from their use of this information.

Suresh KP is a veteran financial expert with over 20 years of experience. He is a NISM certified investment advisor and research analyst. For more information about his expertise and certification, please visit Suresh KP

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