Borana Weaves Limited is coming up with an IPO with a fresh issue of 67,08,000 shares worth INR 144.89 crores. The company aims to set up a new manufacturing unit, meet working capital requirements and fund general corporate purposes. 

Borana Weaves IPO – Important Dates

Borana Weaves Limited IPO – Company Profile

Borana Weaves Limited specialises in producing unbleached synthetic grey fabric and polyester textured yarn (PTY Yarn), used extensively in fashion, traditional textiles, technical textiles, home décor, and interior design industries. 

With three manufacturing units in Surat, Gujarat, the company is equipped with advanced machinery for texturising, warping, water jet weaving, and textile folding. It also produces PTY Yarn by processing polyester oriented yarn (POY Yarn), a key raw material for grey fabric.

Borana Weaves Limited caters to a broad range of textile demands through its versatile fabric offerings and plays a vital role in the textile supply chain by supporting further fabric enhancement processes across various sectors.

Borana Weaves Ltd IPO Fundamental Analysis

Borana Weaves Limited’s financial analysis reveals a mixed performance. Revenue has shown strong growth along with rising profits and assets, with improved liquidity. However, the Return on Net Worth (RoNW) has decreased, which could be a source of concern among investors. 

• Revenue Trend: The revenue increased from ₹13,552.84 lakhs in March 2023 to ₹19,960.47 lakhs in March 2024. The revenue for the 9-month period ended December 2024 is ₹21,570.70 lakhs.    
• Equity and Liabilities: Equities have shown a consistent increase over the periods, reflecting potential growth and expansion. The debt-equity ratio has decreased, indicating reduced reliance on debt financing.
• Profitability: The profit after tax (PAT) has increased from ₹1,630.09 lakhs in March 2023 to ₹2,358.64 lakhs in March 2024, boosting investor confidence. The profit for the period ending December 2024 is ₹2,930.63 lakhs.
• Earnings per Share (EPS): The diluted EPS has increased from ₹10.88 in March 2023 to ₹11.83 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the 9-month period ended in December 2024 is ₹14.70. 
• Return on Net Worth (RoNW): The RoNW has decreased from 67.61% to 49.77%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
• Financial Position: Total assets have increased, suggesting potential business growth. The current ratio has also increased, indicating stronger liquidity and a better ability to meet short-term obligations. 

Borana Weaves IPO Financial Analysis

Borana Weaves Limited IPO Peer Comparison

Jindal Worldwide leads in revenue and EBITDA but lags in margins. KPR Mill shows strong profitability with 20% EBITDA and 14% PAT margins. Borana Weaves has the highest margins despite lowest revenue. Vardhman balances scale with solid margins.

Borana Weaves Ltd IPO Objective

The main objective of Borana Weaves Limited is to set up a new manufacturing unit, fund working capital requirements and meet general corporate purposes. 

1. New manufacturing Unit: The company proposes to utilise INR 7,134.77 lakhs from the Net Proceeds to set up a new manufacturing unit in Surat, Gujarat, India, to expand its product capabilities to produce fabric. 
2. Working Capital Requirement: The company intends to utilise INR 2,650 lakhs from the Net Proceeds to fund working capital requirements. 
3. General Corporate Purposes: The company plans to utilise the remaining proceeds to meet general corporate purposes. 

Borana Weaves IPO Risks And Challenges

Borana Weaves Limited’s risk includes dependency on obtaining certain approvals or permits, reliance on Gujarat-based customers for major revenue, and geographical concentration for raw material supplies, which could adversely impact operations, profitability, and business performance. 

• The company’s operation is dependent on obtaining approvals and permits to operate the Proposed Unit 4. Any failure to obtain approval/licenses or permits may adversely affect their business, financial condition, cash flows and operational results. 
• The company’s major revenue is derived from customers based in Gujarat, with no long-term agreements in place. Any cancellation or changes in orders or inability to accurately forecast demand may negatively impact business performance and financial health.
• The company’s Registered and Corporate Office, manufacturing units, and 90% of raw material (POY Yarn) suppliers are concentrated in Gujarat. This geographical dependence exposes it to region-specific risks such as natural disasters, labour unrest, terrorist attacks, or regulatory challenges, which may disrupt operations and impact overall business. 

Borana Weaves Ltd IPO – Industry & Market Potential

The Indian readymade garments sector has grown rapidly, positioning India as one of the largest global manufacturers and exporters. Apparel manufacturing supports 12.3 million jobs, while the domestic market is among the fastest-growing and most lucrative worldwide.

However, economic uncertainty and inflation have led to a slowdown in both domestic and export demand. Order bookings for the festive season are projected to decline by 25–30% due to high input costs. 

Still, the apparel market is expected to reach USD 135 billion by 2025, growing at a 10% CAGR from 2019–20. Cotton remains dominant, with India contributing nearly 24% of global cotton output and maintaining a 60:40 cotton-to-synthetic consumption ratio, significantly higher than the global average.

Borana Weaves Limited IPO – Type of Offer

Borana Weaves Limited is coming up with an IPO with a fresh issue of 67,08,000 shares worth INR 144.89 crores. The company aims to set up a new manufacturing unit, meet working capital requirements and general corporate purposes. 

Borana Weaves IPO Offer Size

The offer size of Borana Weaves Limited is INR 144.89 Crores, consisting of a fresh issue of 67,08,000 shares. The company aims to set up a new manufacturing unit, fund working capital requirements and general corporate purposes. 

Borana Weaves Limited IPO Allotment Structure

Borana Weaves Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs 2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs 2 lakhs. 

How to apply for the Borana Weaves IPO?

To apply for the Borana Weaves Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Borana Weaves Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Borana Weaves Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Borana Weaves IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Borana Weaves Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Borana Weaves Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Borana Weaves Limited IPO:

● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Borana Weaves Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Borana Weaves Ltd IPO Offer Registrar

The registrar for the Borana Weaves Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFin Technologies Limited Selenium,

Tower-B, Plot No. 31 and 32 

Financial District, Nanakramguda, Serilingampally

Hyderabad 500 032 Telangana, India

Tel: +91 40 6716 2222

E-mail: [email protected]

Website: www.kfintech.com 

Borana Weaves IPO – FAQs