Borana Weaves IPO Review: Apply or Skip?
- Shubham Bhatia
- May 20
- 4 min read
It feels like ages since I last wrote an IPO review that truly captured public attention. Finally, an IPO has arrived that is generating genuine excitement, with investors eagerly looking forward to applying and seeing the company get listed. Over the last two quarters, IPOs have seen muted interest from both long-term and GMP-focused investors. But that dry spell may be ending, as the promising GMP of Borana Weaves Limited is raising hopes among investors.
So let’s dive into my IPO review of the company—should you apply for listing gains or consider holding it long-term?
Borana Weaves IPO Review: Company Overview
Borana Weaves is based in Surat, Gujarat, and operates in the textile industry. More specifically, the company manufactures unbleached synthetic grey yarn, which finds applications across various industries such as home décor and textiles. This type of grey yarn is also produced by several other listed players, most notably Vardhman Textiles.
However, Borana Weaves is not solely focused on grey yarn and has a broader product portfolio.
Here are some key details of the company:
📊 Key IPO & Company Details
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 the upper price band)
Issue Size: ₹144.89 crore (entirely fresh issue of 67.08 lakh equity shares)
Listing Date: May 27, 2025
Listing Exchanges: BSE and NSE
Lead Manager: Beeline Capital Advisors Pvt. Ltd.
Registrar: Kfin Technologies Ltd.
Grey Market Premium (GMP): Approximately ₹55, indicating a potential listing gain of around 25% over the upper price band
🏭 Company Overview
Incorporated: 2020
Headquarters: Surat, Gujarat
Business: Manufacturing of unbleached synthetic grey fabric and polyester textured yarn
Manufacturing Units: Three units equipped with 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines
Clientele: As of September 30, 2024, serving 146 customers, primarily within Gujarat
💰 Financial Highlights
Revenue:
FY22: ₹42.3 crore
FY23: ₹135.4 crore
FY24: ₹199.1 crore
Profit After Tax (PAT):
FY23: ₹16.3 crore
FY24: ₹23.59 crore
Nine Months Ending December 31, 2024:
Revenue: ₹215.71 crore
PAT: ₹29.31 crore
📈 Use of IPO Proceeds
Establishing a New Manufacturing Unit: ₹71.34 crore (49.23%)
Working Capital Requirements: ₹26.50 crore (18.28%)
General Corporate Purposes: Remaining funds
Management and Corporate Overview
While Borana Weaves was incorporated in 2020, this doesn't reflect the true depth of experience within the promoter group. The promoter has extensive industry expertise and also owns another company—Borana Filaments Pvt Ltd, incorporated in 2002. According to their website, the promoter has been involved in the textile industry since the 1970s.
There’s no doubt about the experience and intent of the promoter. The management appears to have a clear vision and strategic direction for scaling the business.
Other Companies Listed by the Promoter Group
Interestingly, the same promoter group is also associated with another listed entity—R&B Denims, which currently has a market cap of approximately ₹840 crore. It’s worth noting that R&B Denims is not solely owned by the Borana Group, as it was established in collaboration with the RawatKhedia Group. The company began operations in 2012 and came out with an SME IPO in 2014, priced at ₹10 per share. At that time, the market cap was around ₹8–9 crore.
Fast forward to today, the stock has delivered a 10x return over the past 10–11 years. However, it’s important to note that returns were relatively muted for the first 6 years, and significant growth has only come post-2020. The company has also moved from SME to the main board.
Honest Opinion About the IPO
Borana Weaves Limited is a strong company within the textile space. The combination of experienced promoters and operational focus is certainly a big plus.
That said, one of the challenges for long-term investors is that textile companies typically do not attract high valuations—either in terms of PE or sales/market cap multiples. This is primarily because textiles are a highly commoditized industry with low margins and minimal entry barriers, which means competition is always a looming threat.
If you're applying purely for listing gains, the GMP suggests there is decent upside, and in that case, this IPO is a clear Apply.
For long-term investors, here are two perspectives:
If you're simply looking for attractive investment opportunities across sectors, there are plenty of other options that offer better growth potential and higher multiples.
However, if you’re keen to invest specifically in the textile sector, Borana Weaves stands out as a solid choiceamong its peers.
📌 Conclusion
Borana Weaves Limited brings a refreshing change to the IPO landscape after a dry spell of lackluster offerings. Backed by experienced promoters and a proven history through associated companies like R&B Denims, the company checks several boxes when it comes to pedigree and sectoral experience.
That said, investors need to recognize the nature of the textile industry—low margins, commoditized products, and high competition—which limits its ability to command premium long-term valuations.
🔹 For listing gains: The IPO looks attractive, with a decent GMP and positive market sentiment. It qualifies as an Apply.
🔹 For long-term investment: If you're bullish on the textile sector and looking to invest within it, Borana Weaves is a strong candidate among its peers. But if your horizon is broader and you're sector-agnostic, there are better opportunities available across sectors with higher growth potential and valuation upside.
Ultimately, Borana Weaves is a solid bet for short-term gainers and selective long-term investors within textiles, but not a must-have for general portfolio building.
This is it for the Borana Weaves Limited IPO Review, Thank you for reading :)
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