As an investor, deciding whether the IPO is Good or Bad to invest in can often be challenging. If you are confused and worried about whether to Apply or Not the Borana Weaves IPO. Then worry not, here we are describing 10 important key points & an in-depth, detailed Borana Weaves IPO review which will help you to make the decision.
Strengths and Weaknesses of Borana Weaves IPO
Strengths:
- Borona Weaves is one of the leading companies involved in the manufacturing of synthetic grey fabric based in Surat. They are in a good position to benefit from this growing demand in this market.
- They have invested in water jet looms that offer smooth, uniform fabric and set up fully integrated manufacturing units that will benefit the production of the synthetic grey fabric.
- So far, the company has shown incredible financial results with a strong increase in revenues and profitability.
- Its promoters, Chairman, and Managing Director, Mangilal Ambalal Borana, have played a significant role in growing the company, having over 24 years of experience in the textile industry.
Weaknesses:
- The company has applied to the Gujarat Pollution Control Board for a ‘Consent to Establish’ license for its Unit 4 project. If it failed to secure the approval of the board or didn’t receive the license, then it could negatively affect the business and its financial performance.
- Most of their customers are from Gujarat, that too without any long-term contract. So, if they cancel any order or the company doesn’t understand the order correctly can lead to a loss in business.
- The company’s revenue and income are mainly generated through the sale of the grey fabric. Any reduction in sales, if the price they sell their products falls, or any issues related to production occur, can negatively impact the business, cash flow, and overall financial performance.
- The success of its business depends on the satisfaction of our customers, how well the customers receive the orders, and any reduction in the demand for the products could negatively harm the business, impacting the company’s financial performance.
- Its business only runs through its manufacturing units; unexpected shutdowns, slowdowns, or unwanted interruptions will negatively impact the business.
Borana Weaves IPO Details
| IPO Date: | May 20, 2025 to May 22, 2025 |
| IPO Size: | ₹144.89 Crores |
| Offer-for-sale: | No offer-for-sale |
| Fresh issue: | ₹144.89 Crores |
| Price band: | ₹205 to ₹216 |
| Purpose of IPO: | Fresh Issue |
Borana Weaves IPO Open and closing date?
Borana Weaves IPO will be opening for subscription on May 20, 2025, and will be closed for subscription on May 22, 2025.
What is the size of the Borana Weaves IPO?
The company planned to raise funds of around ₹144.89 crores via IPO. This IPO comprises only a fresh issue of ₹144.89 crores and no Offer-for-sale component with a face value of ₹10 each.
What are the subscription details of the Borana Weaves IPO?
The Borana Weaves IPO price range is set at ₹205 to ₹216 per share. In this IPO, a total of 69 shares were available in 1 lot size for the minimum Retail category, and for the maximum retail category, 897 shares in 13 lot sizes were available, and for the S-HNI Minimum category, 966 shares were available in 14 lot sizes. While for the B-HNI Minimum category, 4,692 shares were available in 68 lot sizes.
To invest in this IPO, each investor category has specific investment amounts:
- Retail Investors: Minimum investment of ₹14,904 and maximum investment of ₹1,93,752.
- Small HNI (S-HNI): Minimum investment of ₹2,08,656.
- Big HSI (S-HNI): A minimum investment of ₹10,13,472 is required.
What is the Borana Weaves IPO listing Date?
Borana Weaves is a Mainboard IPO shares will be listed on May 27, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
What are the objectives of the Borana Weaves IPO Issue?
The proceeds raised from the fresh issue will be used to handle the cost of building a new manufacturing unit in order to widen its production capabilities at Surat, India. Some of the funds will be used to manage the working capital requirements. Lastly, the remaining proceeds will be utilized for the company’s general corporate purposes.
About Borana Weaves
Incorporated in 2020, Borona Weaves Limited is one of the well-known textile manufacturers in India, involved in the manufacturing of unbleached synthetic grey fabric. Grey fabric is something that is widely used as a base in various industries, including fashion, traditional textiles, technical textiles, home decor, and interior design etc. What makes them unique is their diversity to work in a diverse range of unbleached fabrics of different designs. Moreover, Borona Weaves also engaged in the manufacturing of polyester textured yarn (“PTY Yarn”). The manufacturing of synthetic grey fabric uses textile technology and low-pollution machines and tools. The company has an availability of a total of 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines as of September 30, 2024.
Borana Weaves IPO Financials
The company reported revenue of ₹199.60 crores in 2024 against ₹135.53 crores in 2023. The company reported a profit of ₹23.59 crores in 2024 against a profit of ₹16.30 crores in 2023.
Borana Weaves IPO Promoters
Mangilal Ambalal Borana, Ankur Mangilal Borana, Rajkumar Mangilal Borana, Dhwani Ankur Borana, Mangilal Ambalal Borana HUF, Ankur Mangilal Borana HUF, Rajkumar Mangilal HUF And Borana Filaments Private Limited are the promoters of the company.
Who are the Borana Weaves IPO lead managers and registrar?
Beeline Capital Advisors Pvt Ltd is the lead manager of Borana Weaves, while KFin Technologies Limited is the registrar of the company.
Should you Apply or not for the Borana Weaves IPO?
Borona Weaves started its business in 2020 as a growing manufacturer of synthetic grey fabric in India, used in various industries, including fashion, traditional textiles, technical textiles, home decor, and interior design. With a total of 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines active at its three units, the company has established a notable name in this growing industry. Their products are not only high-quality but also affordable, durable, and easy to maintain. Most of its customers are based in Gujarat, other than that, they sell their products in various states like Rajasthan, Uttar Pradesh, West Bengal, Haryana, and Delhi. In the time period of March 31, 2024, the company generated a revenue of ₹19,905.56. Also showed the rise in the Profit After Tax (PAT) by ₹2,358.64.
So, now the question is, should you apply or not for the Borana Weaves IPO? The incredible combination of solid financial and well-defined growth strategy in the manufacturing of unbleached synthetic grey fabric makes Borana Weaves an attractive choice to invest in. However, we recommend always doing a good financial background check on the company you want to invest in, and investing in it at your own risk.
