Borana Weaves IPO Day 3: GMP, subscription status to review. Apply or not as bidding ends in few hours?

Borana Weaves IPO: Bidding for the Initial Public Offering (IPO) of Borana Weaves Limited opened on 20 May 2025 and will remain open until 22 May 2025. This means investors have just a few hours to apply for the Borana Weaves IPO. The book build issue has received a strong response from the primary market investors in the first two days of bidding. According to the Borana Weaves IPO subscription status, the public issue has been booked over 29 times in the first two days. The Indian grey market is also bullish on Borana Weaves shares, trading at a premium of ₹61 per equity share.

Borana Weaves IPO GMP today

According to stock market observers, Borana Weaves' IPO GMP (Grey Market Premium) today is ₹61, ₹5 higher than Wednesday's GMP of ₹56 apiece. Experts said positive sentiments on Dalal Street could be the reason for the rise in grey market sentiments on Borana Weaves' IPO. They predicted further upside on the grey market sentiment if the Indian stock market continues to trade upside on the subsequent two sessions of the week.

Borana Weaves IPO subscription status

By 3:03 PM on day three of bidding, the book build issue had been subscribed to 125.16 times. The retail portion of the public offer had been filled 179.47 times, the NII segment had been booked 221.78 times, and the QIB portion had been subscribed 58.75 times.

Borana Weaves IPO review

Giving a 'subscribe' tag to the public issue, Gaurav Goel, Founder & Director at Fynocrat Technologies, said, "Borana Weaves offers a compelling growth story in the synthetic textile sector. The company can scale profitably with a vertically integrated model, high-capacity utilization, and efficient water jet loom technology investment. While the IPO is priced fairly based on future earnings (with an estimated P/E of 14.7x for FY25), meaning it's not cheap, the company's strong fundamentals and positive industry trends support a favourable long-term outlook. Investors with a long-term horizon may consider subscribing to this IPO."

INDSEC Securities has also assigned a 'subscribe' tag to the book build issue: "At an upper price band of ₹216, Borana Weaves is valued at a PE of 24.4x on FY24 earnings vs Industry peer set average PE of 35x. The company manufactures specialized synthetic grey fabric and polyester-textured yarn. The demand for polyester in India is projected to grow from 4 Mnt to 6.7 Mnt by 2025. Also, the global end-use market for artificial fibres will expand by 3.7% by 2025. Over FY22-24, the company's Revenue/EBITDA/APAT has registered a CAGR of 116.8%/182.1%/262.1%, respectively. Within 9M of FY25, revenue has already surpassed FY24 reported revenue, owing to scale in capacity utilisation of unit 3, which got commercialised in Q4 FY24. Through IPO proceeds, the company intends to set up a new manufacturing unit to reach a 346 million meters per annum capacity and continue capitalising on the growing demand for synthetic fabric. Additionally, foraying into producing high-margin technical textiles is expected to improve business margins further. In FY24, the company's ROE and ROCE were at 49.5% and 24.3%, respectively. We have a "Subscribe" rating for the IPO on account of strong industry growth tailwinds, higher capacity utilisation (>75%) in the existing facility, coupled with the new facility and diversifying into high-margin products."

Borana Weaves IPO details

The company has offered Borana Weaves IPO at a price band of ₹205 to ₹216 apiece. The most likely Borana Weaves IPO allotment date is 23 May 2025, and the most likely Borana Weaves IPO listing date is 27 May 2025.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.