Borana Weaves IPO Opens Tomorrow: GMP Signals Over 25% Listing Gains

Borana Weaves Ltd. is set to launch its initial public offering on May 20. The Gujarat-based company aims to raise nearly Rs 145 crore through the IPO. The company is a manufacturer of unbleached synthetic grey fabric and polyester textured yarn.

Investors who want to participate in the mainboard issue can check the following details before taking an investment call.

Borana Weaves IPO is a book-building issue worth Rs 144.89 crore. It comprises a fresh issue of 67 lakh shares. 

The IPO price band has been set between Rs 205 and Rs 216 per share. 

Retail investors can invest in the IPO with a minimum lot size of 69 shares, requiring an investment of at least Rs 14,904. Small Non-Institutional Investors (sNII) need to apply for a minimum of  966 shares, amounting to an investment of Rs 2,08,656. Big NIIs (bNII) can invest with a minimum lot size of 4,692 shares, requiring an investment of Rs 10,13,472.

Borana Weaves IPO will remain open for subscription from May 20 to May 22. The allotment of shares is scheduled to be finalised on May 23. The company will initiate refunds and transfer of shares to the Demat accounts on May 26.

Shares of Borana Weaves are tentatively scheduled to be listed on the NSE and BSE on May 27. 

A minimum of 75% of the net issue is reserved for Qualified Institutional Buyers (QIBs). Retail investors will be allotted a maximum of 10% of the net issue. NIIs are entitled to a maximum of 15% of the issue. 

Beeline Capital Advisors Pvt. is the book-running lead manager of the IPO. Kfin Technologies Ltd. is the registrar for the issue.

According to Investorgain, the latest grey market premium (GMP) for the Borana Weaves IPO stood at Rs 55 as of 2:31 p.m. on May 19. It indicates a listing price of Rs 271 at a premium of 25.46%.

The GMP saw a slight decline on Monday after being steady at Rs 63 a piece for the last couple of days.

Note: GMP does not represent official data and is based on speculation.

Borana Weaves is a manufacturer of unbleached synthetic grey fabric and polyester textured yarn. It has three manufacturing units in Gujarat. Its products are used in industries such as traditional textiles, technical textiles and home decor.

The company will use proceeds from the IPO for general corporate purposes, funding incremental working capital requirements and to set up a new manufacturing unit for producing grey fabric.

The company reported a 44.7% year-on-year (YoY) rise in profit after tax (PAT) to Rs 23.59 crore in FY24 from Rs 16.3 crore in FY23. Revenue from operations increased 47% YoY to Rs 199.05 crore in FY24 from Rs 135.4 crore in FY23.

For the nine-month period ended Dec. 31, 2024, PAT stood at Rs 29.31 crore, while the revenue was reported at Rs 215.71 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.