IPO Listing: Borana Weaves Shares debut at nearly 13% premium

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Mumbai: Shares of textile manufacturer Borana Weaves kicked off its innings at Dalal Street on Tuesday, May 27. The stock listed at a premium of 12.50% at ₹243 on both the BSE and the NSE, This compares to an issue price of ₹216. Ahead of its debut, the grey market premium (GMP) for the company’s shares stood at ₹43.

The IPO, which was open for bidding between May 20 and May 22, received a bumper response from investors across all categories. The issue was booked 148.77 times overall, with the retail portion subscribed 200.50 times, NII segment 237.41 times, and QIBs 87.21 times.

The company raised a total of ₹144.89 crore via IPO, which was entirely a fresh issue of up to 67.08 lakh equity shares. Borana Weaves will use the proceeds from the IPO to finance the cost of setting up a new manufacturing unit to expand capabilities to produce grey fabric at Surat, Gujarat, funding incremental working capital requirements, and for general corporate purposes.

“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,” Borana Weaves’ Chairman and MD Mangilal Ambalal Borana said.

Incorporated in 2020, Borana Weaves engaged 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, home decor, and interior design.

On the earnings front, the company reported revenue of ₹215.71 crore and a net profit of ₹29.31 crore for the nine months ended December 2024.