Borana Weaves IPO: Check Day Two Subscription Status, GMP, Price Band And More

The initial public offering of Borana Weaves Ltd. has been subscribed 29.46 times so far on its second day of bidding on Wednesday.

The grey market premium of Borana Weaves IPO was Rs 57 as of 5:57 p.m. on Wednesday, according to InvestorGain. This implies shares of the company will likely list at Rs 273 apiece, with a 26.39% gain over the IPO price.

⁠The offer consists of an issue of fresh shares worth Rs 144.89 crore. The price band has been set in the range of Rs 205 to Rs 216 per share.

The company aims to utilise Rs 713 crore toward financing a new manufacturing unit in Surat, to expand grey fabric production, Rs 265 crore toward funding working capital requirements, and the remaining for general corporate purposes.

• Issue opens: May 20.

• Issue closes: May 22.

• Issue price: Rs 205-216.

• Fresh issue: Rs 144.89 crore.

• Total issue size: Rs 144.89 crore.

• Lot size: Minimum 69 shares, and then in multiples thereof.

Borana Weaves is a textile manufacturer based in Surat, specialising in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, across various industries including fashion, traditional textiles, technical textiles, home décor, and interior design.

In addition to grey fabric, Borana Weaves also manufactures polyester textured yarn, which is produced by heating polyester-oriented yarn, a raw material used in the production of its grey fabric.

The IPO has been subscribed 29.46 times as of 5:00 p.m. on Wednesday.

• Qualified institutional buyers: 1.76 times.

• Non-institutional investors: 53.07 times.

• Retail investors: 77.16 times.

The grey market premium of Borana Weaves IPO was Rs 57 as of 2 p.m. on Wednesday, according to InvestorGain. This implies shares of the company will likely list at Rs 273 apiece, with a 26.39% gain over the IPO price.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.

• As of Dec. 31, 2024, over 98% of Borana Weaves' revenue is derived from customers based in Gujarat, with no long-term agreements in place. Changes or cancellations of purchase orders could adversely impact the company's business.

• Borana Weaves has a limited operating history, having commenced operations in 2020.

• The business is heavily reliant on the sale of grey fabric, which accounted for 84.24% of revenue from operations in the nine months ended Dec. 31, 2024. Any decline in sales volume, production capacity, or selling price of grey fabric could negatively affect the company's financial condition.

• The company has incurred significant indebtedness, exposing it to various risks.