Borana Weaves Shares Surge 18% Over Issue Price Post Listing

Shares of Borana Weaves Ltd. debuted on the National Stock Exchange at Rs 243 apiece, at a premium of 12.50% over the issue price of Rs 216. The stock listed on the BSE at a similar premium, also at Rs 243 per share.

The company's share price then rose as much as Rs 252 as of 10:00 a.m., marking a nearly 18% premium on the issue price and almost 4% above the listing price.

Borana Weaves' IPO, which closed on May 22, was subscribed 148.78 times, with demand led by non-institutional employees.⁠ The offer consisted of an issue of fresh shares worth Rs 144.89 crore.

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.

Beeline Capital Advisors Pvt. was the sole book running lead manager and Kfin Technologies Ltd. was the registrar to the IPO.

Business

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 company reported a 44.7% year-on-year rise in profit to Rs 23.59 crore in financial year 2024 from Rs 16.3 crore in fiscal 2023. Revenue from operations increased 47% year-on-year to Rs 199.05 crore in fiscal 2024 from Rs 135.4 crore in financial year 2023.