Borana Weaves IPO Evaluation – Ought to You Make investments or Keep away from?

The textile sector is buzzing once more, and the newest entrant trying to weave success on the bourses is Borana Weaves Restricted. With its IPO opening on Might 20, 2025, the corporate is aiming to lift ₹144.89 crores by way of a totally contemporary subject. On this detailed Borana Weaves IPO overview, we’ll cowl every part from the corporate profile to financials, aggressive strengths, dangers, GMP (Gray Market Premium), and whether or not buyers ought to subscribe to the problem or not.

About Borana Weaves Restricted

Included in 2020, Borana Weaves Restricted relies in Surat, Gujarat, and is engaged within the manufacturing of unbleached artificial gray cloth and polyester textured yarn (PTY).

The corporate caters to a number of industries like style, conventional textiles, residence décor, inside design, and technical textiles. Their three manufacturing items in Surat home:

• 15 Texturizing Machines
• 6 Warping Machines
• 700 Water Jet Looms
• 10 Folding Machines

This vertical integration provides Borana Weaves higher management over high quality, value, and supply schedules.

Borana Weaves IPO Particulars

Aggressive Strengths

1. Trendy Infrastructure: Geared up with state-of-the-art textile equipment throughout three items.
2. Skilled Promoters: The Borana household has long-standing experience within the textile enterprise.
3. Product Diversification: Providing each gray cloth and PTY Yarn provides the corporate flexibility and wider market attain.
4. Operational Effectivity: Management over sourcing and processing permits for higher margins.
5. Surat Benefit: Being in India’s textile hub helps with each procurement and logistics.

Monetary Efficiency

Borana Weaves has proven sturdy monetary progress in a brief span.

• PAT Margin: 11.85%
• ROE: 49.45%
• ROCE: 27.42%

This exponential progress showcases sturdy execution capabilities and demand for his or her merchandise.

Objects of the IPO

The IPO proceeds will probably be used for:

1. Organising a New Manufacturing Unit in Surat – ₹71.35 Cr
2. Working Capital Necessities – ₹26.5 Cr
3. Basic Company Functions

This growth is anticipated to extend manufacturing capability and drive future revenues.

Peer Comparability – Is Borana Weaves IPO Valuation Engaging?

The IPO value band for Borana Weaves is ₹205 to ₹216 per share.

Allow us to analyze the P/E (Value to Earnings) ratio primarily based on totally different earnings views:

• If we think about the final 3 years weighted common EPS of ₹8.72, the P/E ratio works out to be 24.8x to 26.2x
• If we think about the FY24 EPS (March 2024) of ₹11.83, the P/E ratio works out to be 17.3x to 18.3x
• If we annualize the 9-month EPS (Dec 2024) of ₹10.99, the projected full-year EPS is round ₹14.65, and the P/E ratio works out to be 14x to 14.7x

Now let’s examine it with a number of listed friends within the textile and yarn section:

📌 In comparison with friends, Borana Weaves’ IPO valuation at P/E of 14x to 18x appears absolutely priced, contemplating it’s a comparatively new firm. It’s not considerably undervalued however can be not extremely costly. Buyers might think about this IPO in the event that they imagine within the firm’s growth potential and progress trajectory.

Causes to Put money into Borana Weaves IPO

✅ Sturdy income and revenue progress over the past 3 years
✅ Presence in high-demand textile segments
✅ Backward integration with in-house yarn manufacturing
✅ Plans to broaden with new manufacturing unit
✅ Excessive return ratios (ROE > 45%)

Threat Components

⚠️ Excessive Dependence on a Single Product Class – Gray cloth kinds a serious a part of income
⚠️ Geographical Focus – All items situated in Surat; operational dangers stay centralized
⚠️ Working Capital Intensive – Textile enterprise requires excessive working capital, particularly in peak seasons
⚠️ Dilution Threat – Publish-issue EPS drops considerably, impacting per-share earnings quickly
⚠️ No Earlier Market Monitor File – Being a first-time issuer provides uncertainty

Gray Market Premium (GMP)

As of the newest replace, the GMP for Borana Weaves IPO is round ₹35–₹40 per share, indicating a 15–18% itemizing acquire expectation. Nonetheless, GMPs are unofficial and unstable.

How one can Apply for Borana Weaves IPO?

You’ll be able to apply by way of your dealer or utilizing UPI by way of platforms like Zerodha, Groww, Upstox, and many others.

Steps:

1. Login to your buying and selling app
2. Navigate to “IPO” part
3. Choose “Borana Weaves IPO”
4. Place bid at cut-off value for retail (₹216)
5. Affirm UPI mandate

Reduce-off Time for UPI Affirmation: 5 PM, Might 22, 2025

Ought to You Put money into Borana Weaves IPO?

Borana Weaves is exhibiting stable fundamentals, fast progress, and clear growth plans. Regardless of its brief historical past, it has scaled operations effectively.

✅ Excessive progress potential and robust financials
✅ Affordable P/E vs friends (pre-issue)
❌ Quick working historical past and excessive fairness dilution

Excessive threat buyers can make investments for long-term progress.

FAQs – Borana Weaves IPO

Q1. What’s the Borana Weaves IPO value band?
A: The worth band is ₹205 to ₹216 per fairness share.

Q2. What’s the lot measurement for Borana Weaves IPO?
A: Minimal 69 shares; retail funding begins at ₹14,904.

Q3. Is there an Supply for Sale (OFS)?
A: No, it’s a 100% contemporary subject.

This autumn. When is the Borana Weaves IPO allotment date?
A: Anticipated on Might 23, 2025.

Q5. How is the corporate’s monetary efficiency?
A: Income grew from ₹42 Cr in FY22 to ₹215 Cr (9M FY24); PAT elevated considerably.

Q6. The place will Borana Weaves shares be listed?
A: On each BSE and NSE.

Q7. What’s the anticipated GMP for Borana Weaves IPO?
A: ₹35–₹40 per share (indicative, not official).

Disclaimer: This text is only for instructional and informational functions solely and shouldn’t be construed as funding recommendation. Investing in IPOs, particularly in rising firms, includes excessive threat and is probably not appropriate for all buyers. Please seek the advice of your monetary advisor or funding marketing consultant earlier than making any funding choices. The writer and writer should not chargeable for any monetary loss arising from using this info.

Suresh KP is a seasoned monetary skilled with over 20 years of expertise. He’s NISM Licensed Funding Adviser and Analysis Analyst. For extra about his experience and certifications, go to About Suresh KP

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