Borana Weaves Limited IPO: Everything You Need to Know

Borana Weaves Limited, a Surat-based textile manufacturer, is set to launch its Initial Public Offering (IPO) on May 20, 2025. Specializing in unbleached synthetic grey fabric and polyester textured yarn (PTY), the company is poised to capitalize on its strong regional presence and growing demand in the textile sector. This article provides a comprehensive overview of the IPO, the company’s operations, financial performance, promoters, and more.

IPO Details at a Glance

• Company Name: Borana Weaves Limited

• Sector: Textile (Non-SME)

• IPO Opening Date: May 20, 2025

• IPO Closing Date: May 22, 2025

• Listing Date: May 27, 2025

• Price Band: INR 205 - 216 per share

• Lot Size: 69 shares (Cost: INR 14,904 at the upper price band)

• Offer Size: 67,08,000 shares (INR 144.89 Cr, Fresh Issue)

• Offer for Sale (OFS): None

• Market Cap: INR 575 Cr (post-IPO)

• Total Shares Post-IPO: 2,66,45,295

• Promoter Holding: Pre-IPO: 87.19% | Post-IPO: 65.23%

• Dilution: 21.96%

• Price-to-Earnings (P/E) Ratio: 16x

1. Company Overview

Borana Weaves Limited, headquartered in Surat, Gujarat, is a key player in the textile industry, focusing on the production of unbleached synthetic grey fabric and polyester textured yarn (PTY). The grey fabric serves as a versatile base material for industries like fashion, traditional textiles, technical textiles, home décor, and interior design, where it undergoes further processing such as dyeing and printing. The PTY yarn, produced by heating polyester-oriented yarn (POY), caters to a variety of textile applications.

Manufacturing Capabilities

The company operates three manufacturing units in Surat, equipped with advanced textile manufacturing technologies, including:

• 15 texturizing machines

• 6 warping machines

• 700 water jet looms

• 10 folding machines (as of December 31, 2024)

These facilities enable Borana Weaves to meet the demands of its primary customer base—wholesalers in Gujarat—while supporting its growth trajectory.

Revenue Segments

Borana Weaves derives its revenue from grey fabric and PTY yarn sales.

Key Performance Indicators (KPIs)

The company has shown robust operational performance, though detailed KPIs (e.g., production capacity, utilization rates) are not fully disclosed here.

2. Promoters of Borana Weaves Limited

The company is led by a seasoned trio of promoters with deep expertise in the textile industry:

• Mr. Mangilal Ambalal Borana (Chairman and Managing Director)

  • Over 21 years as a director at Borana Filaments Private Limited.

  • Previously associated with Sachin Paper Mills Private Limited.

  • Brings more than two decades of textile industry experience.

• Mr. Ankur Mangilal Borana (Executive Director and CEO)

  • Holds a bachelor’s degree in commerce (Advanced Accounting & Auditing) from South Gujarat University, Surat.

  • Promoter and Executive Director of R & B Denims Limited.

  • Over a decade of experience in textiles.

• Mr. Rajkumar Mangilal Borana (Executive Director and CFO)

  • Also holds a bachelor’s degree in commerce (Advanced Accounting & Auditing) from South Gujarat University, Surat.

  • Promoter and Executive Director of R & B Denims Limited.

  • More than 10 years of experience in the textile sector.

This experienced leadership team has been instrumental in driving the company’s growth and operational efficiency.

3. Financial Performance

Borana Weaves has demonstrated impressive financial growth over the past few years, reflecting its strong market position and operational scalability. Below is a summary of its financial performance:

Particulars (INR Cr)	FY22	FY23	FY24	9MFY25
Total Revenue	42	135	199	212
Net Profit	2	16.5	23.5	29.5

Key Financial Highlights

• Revenue Growth: The company achieved a remarkable 42% sales growth in the last year, showcasing strong demand for its products.

• Profit Growth: Net profit has grown consistently, from INR 2 Cr in FY22 to INR 29.5 Cr in 9MFY25, reflecting operational efficiency and market expansion.

• P/E Ratio: At 16x, the IPO valuation appears reasonable, offering potential value for investors.

4. Purpose of the IPO

Borana Weaves is raising INR 144.89 Cr through a fresh issue of 67,08,000 shares priced between INR 205 - 216 per share. The funds will be utilized for the following purposes:

• Expansion of Manufacturing Capacity: INR 71.3 Cr to establish a new manufacturing unit in Surat to enhance grey fabric production.

• Working Capital Requirements: INR 26.5 Cr to support incremental working capital needs.

• General Corporate Purposes: INR 47.05 Cr for strategic initiatives and operational flexibility.

This strategic allocation aims to bolster the company’s production capabilities and sustain its growth momentum.

5. Valuation and Peer Comparison

According to the Red Herring Prospectus (RHP), Borana Weaves has no listed peers, making direct comparisons challenging. However, the company’s P/E ratio of 16x and a post-IPO market cap of INR 575 Cr suggest a balanced valuation, especially given its consistent profit growth and strong regional presence in Gujarat’s textile hub.

Why Consider Borana Weaves IPO?

• Strong Financial Growth: Consistent revenue and profit growth, with a 42% sales increase in the last year.

• Strategic Expansion: Funds raised will enhance production capacity, positioning the company for future growth.

• Experienced Leadership: Promoters with over a decade of textile industry expertise.

• Attractive Valuation: A P/E ratio of 16x offers a compelling investment opportunity in the textile sector.

Final Thoughts

Borana Weaves Limited’s IPO presents an exciting opportunity for investors looking to tap into the growing textile industry. With a strong foothold in Gujarat, a clear expansion strategy, and robust financials, the company is well-positioned for future success.