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The IPO of Borana Weaves enters Day 2 on a strong note with 8.53 times subscription, as retail investors poured in money.
The ₹145-crore initial public offering received bids for about 3.15 crore shares against 36,89,457 shares on offer.
Borana Weaves’ IPO that opened on Tuesday at a price band of ₹205-216 will close on Thursday. The entire offer is a fresh issue of shares of 67.08 lakh shares from the company. Investors can bid for a minimum of 69 shares and in multiples thereof.
The quota for retail investors was subscribed 24.96 times, while the category for non-institutional investors fetched 11.54 times subscription. The portion for Qualified Institutional Buyers (QIBs) attracted 1.55 times subscription.
The company has reserved up to 75 per cent for institutional investors (QIBs), 10 per cent for retail investors and the remaining 15 per cent for non-institutions (HNIs).
The company intends to use ₹71.35 crore to establish a new manufacturing facility in Gujarat that will increase the production capacity for grey fabric. Apart from expanding infrastructure, the proceeds will also help meet working capital requirements and take care of other corporate expenses.
Meanwhile, the textile major has raised ₹65.2 crore from 11 anchor investors, including Pink Oal Global Fund, Innovative Vision Fund, Aarth EIF Growth Fund, Saint Capital Fund, Nexus Equity Growth Fund, and Sunrise Investment Trust.
The company, in its filing to exchanges, said it has finalised the allocation of 30,18,543 equity shares to anchor investors at ₹216 per equity share.
Borana Weaves Ltd, a textile manufacturer based in Surat, specialises in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries, including fashion, traditional textiles, technical textiles, home décor and interior design. The company is engaged in the business with B2B model.
The company commenced its operations in 2020, and production from its first unit, Unit 1 located at Plot No. AA/93/P, Hojiwala Industrial Estate, SUSML, Surat, Gujarat, was subsequently started in 2021. As on date, it operates three manufacturing units in Surat, Gujarat, equipped with textile manufacturing technologies for, inter alia, texturising, warping, water jet looms, and textile folding.
The versatility of grey fabric allows it to complement a range of unbleached fabrics across different styles, making it a valuable resource in the textile supply chain. In addition to grey fabric, the company also manufactures polyester textured yarn, which is produced by heating polyester-oriented yarn, its raw material used in the production of grey fabric.
As of December 31, 2024, it had 666 employees on its payroll. Its capacity utilisation has been around 80 per cent on an average since FY23.
Beeline Capital Advisors is the sole merchant banker for Borana Weaves’ IPO.
Published on May 21, 2025
This article first appeared on The Hindu Business Line
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