Borana Weaves IPO: All You Need to Know Before You Invest

About the Company

Borana Weaves specializes in manufacturing two key products:

• Unbleached Synthetic Grey Fabric: Commonly used for further processing such as dyeing and printing.

• Polyester Textured Yarn (PTY Yarn): Made by heating polyester oriented yarn (POY), which is the main raw material for grey fabric.
  

The company operates three manufacturing units in Surat, Gujarat, equipped with modern textile technologies for texturizing, warping, weaving using water jet looms, and folding. These facilities provide scalability and consistent product quality.

Utilisation of Proceeds

The funds raised through the IPO will be primarily used for:

• Setting up a new manufacturing unit – A significant portion of the capital is allocated towards expansion and infrastructure.

• Meeting working capital requirements – This will support day-to-day operational needs and liquidity.

• General corporate purposes – To be used for miscellaneous business-related needs that support overall growth.

Key Strengths

1. Strategic Location: Surat is a major textile hub, offering access to raw materials, skilled labor, and industry networks.

2. Advanced Infrastructure: With over 700 water jet looms, the company ensures high output and consistent fabric quality.

3. Experienced Leadership: The promoters bring over two decades of experience in the textile industry.

4. Robust Supply Chain: Efficient sourcing from domestic and global suppliers ensures operational stability.

5. Growth-Ready Setup: Manufacturing capabilities are designed to scale in line with rising demand in synthetic textiles.

Risks to Keep in Mind

1. Customer Concentration: The business depends heavily on clients in Gujarat, without long-term contracts, which adds volatility.

2. Order Dependency: Any cancellation or change in large orders could disrupt production and revenue flow.

3. Revenue Reliance on Grey Fabric: Over-dependence on a single product may affect sustainability if demand or pricing fluctuates.

4. Capital-Intensive Operations: Expansion and upgrades require substantial capital, which may increase financial risk.

5. Unsecured Borrowings: The company relies on loans that are repayable on demand, potentially impacting liquidity.

6. Uncertain Dividend Policy: Investors looking for steady income may find the lack of dividend clarity a downside.

Borana Weaves IPO Key Details

• IPO Dates: 20th to 22nd May 2025

• Price Band: ₹205 to ₹216 per share

• Lot Size: 69 shares

• Total Issue Size: ₹144.89 crore

• Retail Quota: 10%

• GMP (Grey Market Premium): 25% (for reference only)

Allotment Link

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matters published here are purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. Any reader making decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in the stock market is subject to unpredictable market-related risks. The author has no plans to invest in this offer and also the author does not recommend investing in any offer published on this website.