Borana Weaves IPO: Price band set at ₹205-216 per share; check issue details, key dates, more

Borana Weaves IPO: Borana Weaves IPO price band has been fixed in the range of ₹205 to ₹216 per equity share of the face value of ₹10 for its upcoming public issue. Borana Weaves IPO date of subscription is from Tuesday, May 20 to Thursday, May 22. The allocation to anchor investors for Borana Weaves IPO is scheduled to take place on Monday, May 19.

The IPO floor price is 20.5 times the face value of the equity shares, and the cap price is 21.6 times the face value of the equity shares. The price-to-earnings ratio based on diluted EPS for fiscal 2024 at the lower end of the price band is 17.33 times, and at the upper end of the price band is 18.26 times. 

Investors can apply for Borana Weaves IPO in a lot size of 69 equity shares, and in multiples thereafter.

Borana Weaves IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional investors (NII), and not more than 10% of the offer is reserved for retail investors.

Tentatively, Borana Weaves IPO basis of allotment of shares will be finalised on Friday, May 23, and the company will initiate refunds on Monday, May 26, while the shares will be credited to the demat account of allottees on the same day following the refund. Borana Weaves share price is likely to list on BSE and NSE on Tuesday, May 27.

About Borana Weaves

Borana Weaves Limited is a producer of unbleached synthetic grey fabric located in Surat, Gujarat. The company’s unbleached synthetic grey fabric is commonly utilised as a foundation for additional processing (including dyeing and printing) in sectors such as fashion, traditional textiles, technical textiles, home decor, and interior design.

Additionally, the firm produces polyester textured yarn (PTY Yarn), which is made by heating polyester oriented yarn (POY Yarn), the raw material used in creating grey fabric.

Borana Weaves Limited operates three manufacturing facilities in Surat, Gujarat, that are equipped with textile manufacturing technologies for various processes, including texturising, warping, operating water jet looms, and folding textiles.

As of September 30, 2024, the company had 15 operational texturising machines, 6 warping machines, 700 water jet looms, and 10 folding machines in its three facilities.

According to the red herring prospectus (RHP), there are no listed industry competitors in India or overseas, which could pose challenges in comparing and assessing their financial performance against other firms within the same sector.

Borana Weaves has shown impressive growth over the last three fiscal years. In FY 2024, the company disclosed revenue of ₹199.10 crore, representing a significant rise from ₹135.40 crore in FY 2023 and ₹42.30 crore in FY 2022.

Borana Weaves IPO details

Borana Weaves IPO, which is worth ₹144.89 crore, comprises of fresh issue of 67,08,000 equity shares. There's no offer-for-sale (OFS) component.

Borana Weaves IPO objective is to use the net proceeds from the offering for several purposes, including financing the establishment of a new manufacturing facility to enhance its production capacity for grey fabric in Surat, Gujarat, India; providing additional working capital; and covering general corporate needs.

Beeline Capital Advisors Pvt Ltd serves as the book-running lead manager for Borana Weaves IPO, and Kfin Technologies Limited acts as the registrar for this offering.

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