Borana Weaves IPO Day 1: Check subscription status, GMP, allotment date & more

The initial public offering (IPO) of Borana Weaves attracted a strong response from the investors during the first day of the bidding process from retail and high-net worth investors. The issue, which kicked off on Tuesday, May 20, shall close for bidding on Thursday, May 22.

Borana Weaves is selling its shares in the price band of Rs 205-216 apiece. Investors can apply for a minimum of 69 shares and its multiples thereafter. It is looking to raise Rs 144.89 crore via IPO, which is entirely a fresh share sale of up to 67,08,000 equity shares.

According to the data, the investors made bids for 1,74,36,231 equity shares, or 4.81 times, compared to the 36,89,457 equity shares offered for the subscription by 1.45 pm on Tuesday, May 20, 2025. The bidding for the issue shall continue for three-days.

The allocation for retail investors was subscribed 16.92 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 6.30 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked only 2 per cent  as of the same time.

Incorporated in 2020, Surat-based Borana Weaves is a manufacturer of unbleached synthetic grey fabric. Its unbleached synthetic grey fabric is often widely used as a base for further processing (including dyeing and printing) in industries such as fashion, traditional textiles, technical textiles, home decor, interior design, etc.

The grey market premium (GMP) of Borana Weaves has seen a decent rise on the back of strong bidding for the issue amid jittered market sentiments. Last heard, the company was commanding a premium of Rs 60 per share in the unofficial market, suggesting a 28 per cent listing gains for the investors. The GMP stood around Rs 55, a day ago.

Brokerage firms mostly have a positive view on this issue.  Strong presence in synthetic textiles markets, capex and expansion plans and highest RoE and RoCE among peers in FY24 are its major positives. However, they have highlighted rich valuations, lowest market shares and dependence of revenue on business in grey fabric sales, regional concentration as major concerns.

"Borana Weaves’ IPO offers a compelling short-term opportunity, with strong listing gain potential driven by robust growth, healthy margins, and attractive GMP. The company's niche positioning and integrated manufacturing give it an edge, but high regional concentration and raw material volatility remain key risks, said Gaurav Garg, Lemonn Markets Desk.

"At a P/E of 17.5 times, valuations seem fair, making it a suitable pick for retail and HNI investors looking to capitalize on debut momentum—while long-term investors may want to monitor execution and expansion before committing," he said.

It raised Rs 65.20 crore from 11 anchor investors. Borana Weaves has reserved 75 per cent of the issue for the qualified institutional bidders (QIBs), while non institutional investors (NIIs) will have 15 per cent of the allocation. Retail investors will have only 10 per cent of allocation in this IPO.

Beeline Capital Advisors is the sole book-running lead manager of the Borana Weaves IPO, while Kfin Technologies is the registrar for the issue. Allotment of the shares shall be finalized on Friday, May 23. Shares of the company shall be listed at both BSE and NSE with May 27, Tuesday as the tentative date of listing.