Borana Weaves IPO Day 2: After strong investor response, GMP soars to 28%. Check subscription

Synopsis

Borana Weaves' IPO continued to attract strong interest on Day 2, with overall subscription reaching 8.5 times and the retail portion booked 25 times. The IPO's grey market premium (GMP) surged to Rs 60, indicating a potential 28% listing gain. The issue aims to raise Rs 144.89 crore and closes on May 22.

Borana Weaves’s IPO, which opened for subscription on Monday, saw strong traction from investors on the first day of bidding, particularly in the retail segment. The issue, which is set to raise Rs 144.89 crore through a 100% fresh equity sale, received 8.5 times subscription overall from investors. The category reserved for retail investors was booked 25 times, followed by non-institutional investors at 12 times, and qualified institutional investors at 1.6 times.

With the retail portion already fully booked and strong interest from HNIs and institutional investors expected in the coming days, market participants will be closely watching the subscription figures ahead of the final day.

Borana Weaves IPO last GMP is at around Rs 60, which indicates a listing premium of 28% over the issue price.

The IPO is priced in the range of Rs 205 to Rs 216 per share, and the minimum lot size for retail investors is 69 shares. At the upper price band, the minimum investment for retail applicants stands at Rs 14,904. The IPO will remain open for bidding until Wednesday, May 22.

Beeline Capital Advisors is the sole book-running lead manager, while KFin Technologies is acting as the registrar for the issue. Shares of the company are proposed to be listed on both BSE and NSE, with a tentative listing date of May 27.

Borana Weaves, incorporated in 2020, is a Surat-based textile manufacturer known for its unbleached synthetic grey fabric and polyester textured yarn (PTY yarn). The company caters to a range of industries, including fashion, traditional textiles, home décor, and technical textiles. Its three manufacturing facilities are equipped with advanced machinery, including 700 water jet looms, which contribute to its high production capacity.

The company intends to use the IPO proceeds to set up a new grey fabric manufacturing facility in Surat, meet incremental working capital needs, and for general corporate purposes.

On the financial front, Borana Weaves reported a strong performance for the nine-month period ending December 2024, with revenues of Rs 215.71 crore and net profit of Rs 29.31 crore. The company’s robust growth, along with improving sector sentiment, has driven optimism around the IPO.

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