Borana Weaves Limited, established in 2020 and headquartered in Surat, Gujarat, is a leading manufacturer of synthetic grey fabric and polyester textured yarn. The company operates three advanced production units with a combined annual capacity of over 233 million meters and is expanding further with a new facility set to boost capacity by 48% by June 2025. The Borana Weaves IPO, opening from May 20 to May 22, 2025, is a pure fresh issue aiming to raise up to ₹144.89 crore at a price band of ₹205 – ₹216 per share.
₹40
₹216
₹243
Expert Opinions
Borana Weaves IPO is generating positive market sentiment, supported by strong financial growth and the company’s strategic expansion plans. Its key strengths include rapid revenue and profit growth-FY2024 revenue rose to ₹199.60 crores with a PAT margin of 11.85%-and a focus on high-quality synthetic fabrics backed by advanced technology and capacity expansion in Surat, a major textile hub. The company’s impressive FY2024 metrics-Return on Equity of 49.45%, ROCE of 27.42%, and NAV of ₹23.77-reflect efficient capital use and strong profitability.
However, risks include a high debt-to-equity ratio of 1.87, exposure to raw material price volatility, and competition in the synthetic textile sector. From a long-term perspective, Borana Weaves’ ongoing investments in technology and production capacity position it well to capitalize on India’s growing demand for synthetic fabrics, though prudent debt management and sustained innovation will be critical for enduring success.
Investor Considerations
Borana Weaves IPO has posted strong financial growth, with FY2024 revenue at ₹199.60 crores and a PAT margin of 11.85%, reflecting solid profitability and operational efficiency. The company’s fundamentals are further supported by an impressive EBITDA margin of 20.68%, though its debt/equity ratio of 1.87 signals notable leverage. The sector outlook is favorable, as India’s synthetic textile industry is set for expansion, driven by rising global and domestic demand, ongoing capacity additions, and government support for technical textiles.
Borana Weaves’ growth prospects are anchored in its planned capacity expansion and technological upgrades, positioning it to benefit from these industry trends. However, risks include high competition, raw material price volatility, and the company’s elevated debt levels, which could impact future profitability. Short-term investors may experience volatility, while long-term investors could see value if Borana Weaves maintains growth momentum and manages leverage prudently in a dynamic textile market.
| Date | GMP | Trend |
|---|---|---|
| 26 May 2025 11.33 | ₹40 | --- |
| 25 May 2025 11.09 | ₹40 | Up |
| 24 May 2025 10.57 | ₹30 | Down |
| 23 May 2025 10.53 | ₹40 | --- |
| 22 May 2025 18.53 | ₹40 | Down |
| 21 May 2025 15.54 | ₹60 | --- |
| 20 May 2025 19.27 | ₹60 | Up |
| 19 May 2025 15.41 | ₹55 | Down |
| 18 May 2025 12.09 | ₹60 | --- |
| 17 May 2025 11.36 | ₹60 | --- |
| 16 May 2025 13.43 | ₹60 | Down |
| 15 May 2025 20.26 | ₹70 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Borana Weaves’s listing performance. While the GMP of ₹40 predicted a premium of 18.52% over the issue price, the stock delivered a gain of 12.50%. With a relatively small prediction error of 5.08%, the GMP effectively captured both the positive listing direction and approximate magnitude of gains, though slightly overestimated the final listing premium.
Borana Weaves IPO Current GMP is ₹40.
Borana Weaves IPO Expected Returns is 18.52%.
Borana Weaves IPO estimated listing price is ₹256.