Borana Weaves iPo Review – Should You Invest or Avoid?

The textile sector is Buzzing Again, and the latest entrant looking to weave success on the bourses is Borana Weaves Limited. With Its iPo Opening on May 20, 2025, The company is aiming to raise ₹ 144.89 muros through a full fresh issue. In this detailed Borana Weaves iPo Review, We’ll Cover Everything from the Company Profile to Financials, Competitive Strengths, Risks, GMP (Grey Market Premium), and whither investors Should SUBSCRIBE to the ISSUE

About Borana Weaves Limited

Incorporated in 2020, Borana Weaves Limited is Based in Surat, Gojarat, and Is Engaged in the Manufacturing of Unbleached Synthetic Grey Fabric and Polyster Textured Yarn (Pty).

The company cats to multiple industry’s like fashion, traditional textiles, home décor, interior design, and technical textiles. Their three manufacturing units in surat house:

• 15 texturizing machines
• 6 Warping Machines
• 700 Water Jet Looms
• 10 folding machines

This Vertical Integration Gives Borana Weaves Better Control Over Quality, Cost, and Delivery Schedules.

Borana Weaves iPo Details

Competitive strengths

1. Modern infrastructure: Equipped with state-of-the -art textile machinery across three units.
2. Experienced promoters: The Borana Family has long-standing expertise in the textile business.
3. Product Diversification: Offering both green fabric and pty yarn Gives the company flexibility and wider market reach.
4. Operational efficiency: Control over sourcing and processing allows for better margins.
5. Surat Advantage: Being in India’s Textile Hub Helps with Both Procurement and Logistics.

Financial Performance

Borana Weaves has Shown Strong Financial Growth in a Short Span.

• Pat margin: 11.85%
• Roe: 49.45%
• Roce: 27.42%

This exponical growth showcase Strong Execution Capability and Demand for their products.

Objects of the iPO

The ipo proceeds will be used for:

1. Setting up a new manufacturing unit in Surat – ₹ 71.35 Cr
2. Working Capital Requirements – ₹ 26.5 Cr
3. General corporate purposes

This expansion is expected to increase production capacity and Drive Future Revenues.

Peer Comparison – Is Borana Weaves IPO Valuation Attractive?

The IPO Price Band for Borana Weaves is ₹ 205 to ₹ 216 per share.

Let us analyze the p/e (price to earnings) ratio based on different earnings personals:

• If we consider the last 3 years weighted average Eps of ₹ 8.72, The P/E ratio works out to be 24.8x to 26.2x
• If we consider the fy24 EPS (March 2024) of ₹ 11.83, The P/E Ratio Works out to be 17.3x to 18.3x
• If we annualize the 9-month EPS (Dec 2024) of ₹ 10.99, The Projected full-Year EPS is Around ₹ 14.65, and the p/e ratio works out to be 14x to 14x to 14x to 14x

Now let’s compare it with a more listed peers in the text and yarn segment:

📌 compared to peers, Borana Weaves’ iPo Valuation at P/E of 14X to 18x Seems Fully Priceed, Considered it is a relatively new company. It is not significantly undertained but is also not highly expensive. Investors May Consider this IPO if they believe in the company’s expansion potential and growth trafficory.

Reasons to Invest in Borana Weaves iPo

✅ Strong Revenue and Profit Growth over the last 3 years
✅ Presence in High-Demand Textile Segments
✅ Backward Integration with in-House Yarn Production
✅ plans to expand with new manufacturing unit
✅ High Return Ratios (Roe> 45%)

Risk Factors

High Dependence on a Single Product Category – Gray Fabric Forms A Major Part of Revenue
Geographical concentration – All units located in Surat; Operational Risks Remain Centralized
Working Capital Intensive – Textile Business requires High Working Capital, Especially in Peak Seasons
Dilution Risk -Post-Risue EPS DROPS Significantly, Impacting Per-Share Earnings Temporarily
No Previous Market Track Record -Being a first-time issue adds uncertainty

GREY Market Premium (GMP)

As of the latest update, the Gmp for Borana Weaves iPo is Around ₹ 35 – ₹ 40 per share, indicating a 15–18% listing Gain Expectation. However, GMPS are unofficial and Volatile.

How to Apply for Borana Weaves iPo?

You can apply via your broker or using upi through platforms like zerodha, grow, upstox, etc.

Steps:

1. Login to your trading app
2. Navigate to “IPO” Section
3. Select “Borana Weaves iPo”
4. Place bid at cut-off price for retail (₹ 216)
5. Confirm UPI Mandate

Cut-off time for upi confirmation: 5 PM, May 22, 2025

Should you invest in Borana Weaves iPo?

Borana Weaves is Showing Solid Fundamentals, Rapid Growth, and Clear Expantions Plans. Despite Its Short History, it has scled operations efficiently.

High Growth Potential and Strong Financials
Reasonable P/E vs Peers (Pre-Risue)
Short operating history and high equity dilution

High Risk Investors Can Invest for Long-Term Growth.

FAQS – Borana Weaves iPo

Q1. What is the Borana Weaves IPO Price Band?
A: The price band is ₹ 205 to ₹ 216 per equity share.

Q2. What is the lot size for Borana Weaves iPo?
A: minimum 69 shares; Retail Investment Starts at ₹ 14,904.

Q3. Is there an offer for sale (ofs)?
A: No, it is a 100% fresh issue.

Q4. When is the Borana Weaves iPo Allotment Date?
A: Expected on May 23, 2025.

Q5. How is the company’s financial performance?
A: Revenue Grew from ₹ 42 CR in FY22 to ₹ 215 CR (9m FY24); Pat increased significantly.

Q6. Where will Borana Weaves Shares Be Listed?
A: on both bse and nse.

Q7. What’s the expected Gmp for Borana Weaves iPo?
A: ₹ 35 – ₹ 40 per share (indicative, not official).

Disclaimer: This article is purely for educational and informational purposes only and should not be constructed as investment advice. Investing in IPOS, Especially in Emerging Companies, Involves High Risk and May Not Be Suitable for All Investors. Please consult your Financial Advisor or Investment Consultant Before Making Any Investment Decisions. The author and publisher are not liable for any Financial Loss Arising from the use of this information.

Suresh kp is a seasoned financial expert with over 20 years of experience. He is nism Certified Investment Adviser and Research Analyst. For more about his Expertise and Certifications, Visit About Suresh Kp

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