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Incorporated in 2020, Borana Weaves Limited is a manufacturer of unbleached synthetic grey fabric based in Surat, Borana Weaves IPO looks to raise ₹144.89 crores. The issue is entirely a fresh issue.

About Borana Weaves IPO:

• Company manufactures grey fabric from polyester yarn after doing sizing/texturizing operations and sells its product to the local market in Surat.
• The manufactured grey fabric has multipurpose use in garments interlining, dress materials and tent-making.
• The company had three units in Surat with installed capacity of 816 Lakh metre per annum (424 water-jet looms; 8 texturizing
• machines, and 4 warping machines).
• It has total 793 Employees.

Financials : Borana Weaves Limited

Anchors: Borana Weaves IPO

11 anchor investors, bid as anchor investors and includes names like:

• Pink Oal Global Fund
• Innovative Vision Fund
• Aarth EIF Growth Fund
• Saint Capital Fund
• Nexus Equity Growth Fund
• Sunrise Investment Trust

Salient Points: Borana Weaves IPO

• The issue constitutes 25.18% of the post-IPO paid-up equity capital
• he IPO is entirely a fresh issue.
• Borana Weaves is vertically integrated, producing both polyester textured yarn and grey fabric, which supports operational efficiency and margin stability.
• The company operates in the synthetic grey fabric segment, a key input for various industries, ensuring steady demand
• Company has heavy reliance on the satet of Gujarat.
• They have significantly increased their manufacturing capabilities in the synthetic textile sector in recent years. The funds from the IPO will be used mainly for expanding their production capacity and fulfilling their working capital requirements.
• Capacity utilisation:
  • FY24 – 80.5%
  • FY23 – 79.5%
• Borana Weaves is vertically integrated, producing both polyester textured yarn and grey fabric. This supports operational efficiency and margin stability.
• Company is going for fresh capex which will enhance its capacity by almost 50%.
• The company operates in the synthetic grey fabric segment, a key input for various industries, ensuring steady demand
• I intend to apply in Borana Weaves IPO. Company’s valuation does not look excessive, given its financial and trajectory. Anchor response has been good. PE multiple of 12-13x looks attractive.
• GMP as per social media is around Rs. 55 (25%).
• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.