Borana Weaves Limited IPO Opens on Tuesday, May 20, 2025

 

Left to Right

1. CS Nevil Savjani

2. Mr Rajkumar Borana

3. CA Viral Vora

• Fresh Issue Size - Up to 67,08,000 Equity Shares of ₹ 10 each

• Issue Size - ₹ 144.89 Crore (At Upper Band)

• Price Band - ₹ 205 - ₹ 216 Per Share

• Lot Size - 69 Equity Shares

Mumbai, May 16, 2025 – Borana Weaves Limited, (“Borana”, The Company) specializing in the production of unbleached synthetic grey fabric, proposes to open its Initial Public Offering on Tuesday, May 20, 2025 whereas, the anchor bidding will open on Monday, May 19, 2025 and the bid/ issue will close on Thursday, May 22, 2025. The Company aims to raise ₹ 144.89 Crore and list its Equity Shares on the main board platforms of BSE Limited and National Stock Exchange of India Limited.

The issue size is up to 67,08,000 Equity Shares with a price band of ₹ 205 - ₹ 216 per Equity Share and face value of ₹ 10 each.

Equity Share Allocation

● Qualified Institutional Buyer - Not less than 75% of the Issue

● Non-Institutional Investors - Not more than 15% of the Issue

● Retail Individual Investors - Not more than 10% of the Issue

The net proceeds from the IPO will be utilized to finance the cost of establishing a new manufacturing unit to expand its production capabilities to produce grey fabric at Surat, Gujarat, India (“Proposed Unit 4”), funding incremental working capital requirements, and for general corporate purposes. 

The Company has appointed Beeline Capital Advisors Private Limited as the Book Running Lead Managers to the Issue and KFIN Technologies Limited as the Registrar to the Issue.

Mr. Mangilal Ambalal Borana, Chairman and Managing Director of Borana Weaves Limited expressed, "The launch of our Initial Public Offering marks a significant milestone for Borana Weaves Limited. Over the past few years, we have grown our manufacturing capabilities in the synthetic textile segment. The proceeds from the IPO will support the expansion of our production infrastructure and help us address our working capital needs. This step aligns with our long-term strategy of scaling operations while maintaining focus on product quality and operational efficiency. We look forward to continuing our growth journey with greater capacity and enhanced operational resilience."

About Borana Weaves Limited

Borana Weaves Limited (The Company, Borana) is a textile manufacturer headquartered in Surat specializing 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 versatility of grey fabric allows it to complement a wide range of unbleached fabrics across different styles, making it a valuable resource in the textile supply chain. 

Since commencing operations in 2021, the company has expanded to three manufacturing units in Surat, equipped with 15 texturizing machines, 6 warping machines, 700 water jet looms, and 10 folding machines.

With the global end-use market for man-made fibers expected to expand by 3.7% by 2025, the Indian synthetic textile industry is well-positioned to benefit, with growth opportunities in both domestic consumption and exports (Source: D&B Report). Our majority customer base (comprising of wholesalers) in Gujarat has contributed to our growth. With our office, manufacturing units, and operational activities also based in this state, we have endeavoured to foster strong connections with our customers. Our direct presence in the region has helped us deliver products to our customers.

In FY24, the Company achieved a revenue of ₹ 19,905.56 lakhs, EBITDA of ₹ 4,117.31 lakhs, & PAT of ₹ 2,358.64 lakhs.

As of December 31, 2024, the Company achieved a revenue of ₹ 21,161.52 lakhs, EBITDA of ₹ 4,603.16 lakhs, & PAT of ₹ 2,930.63 lakhs

Disclaimer

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

This press release includes certain external industry data and projections that have been obtained from industry publications, surveys and forecasts. Accordingly, the Company and the BRLM to the Issue and their respective affiliates, advisers and representatives make no representation as to the accuracy or completeness of that data, and this data involves risks and uncertainties and is subject to change based on various factors. No representation or claim is made that the results contained in this press release will actually be achieved. All industry data contained in this press release involve significant elements of subjective judgment and analysis, which may or may not be correct. 

The information contained in this press release is not to be taken as any recommendation made by the Company or by any other person to enter into any agreement with regard to any investment. You will be solely responsible for your own assessment of the market and the market position of the Company, and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. It should be understood that subsequent developments may affect information contained in this press release, which neither the Company, nor its affiliates, advisors or representatives are under an obligation to confirm. 

The Company is proposing to make an initial public issue of its equity shares and has filed the draft red herring prospectus dated November 16, 2024 (“DRHP”) and red herring prospectus dated May 14, 2015 (“RHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP and RHP is available on the website of SEBI at www.sebi.gov.in, on the websites of the Stock Exchanges, i.e., BSE at www.bseindia.com, and NSE at www.nseindia.com, where the equity shares are proposed to be listed, the website of the BRLM, i.e., Beeline Capital Advisors Private Limited.

The equity shares offered in the Issue have neither been recommended, nor approved by

the SEBI, nor does SEBI guarantee the accuracy or adequacy of the contents of the RHP. Specific attention of the readers is invited to “Risk Factors” on page 40 of the RHP.

This press release contains information from the report titled “Synthetic Readymade Garments and Synthetic Grey Fabric”, dated April 14, 2024, which has been prepared by Dun & Bradstreet Information Services India Private Limited, and has been commissioned and paid for by the Company for the purposes of the Issue.

The BRLM, directly and/or through its affiliates, is acting for the Company and not the recipient of this press release and the receipt of this press release by any recipient is not to be taken as the giving of investment advice by the BRLM or its respective affiliates to that recipient, nor to constitute such person a customer or client of the BRLM or its respective affiliates.