Borana Weaves IPO: Can This Textile Underdog Stitch a Multibagger Story?

The Indian IPO market has seen a flurry of tech companies, fintech plays, and even drone startups hog the limelight. But every once in a while, an old-school sector comes knocking—quietly but confidently. This time, it’s Borana Weaves Limited, a Surat-based textile player that’s been spinning impressive growth threads since 2020.

Started with a simple goal—manufacture grey fabric and polyester yarn—the company has now grown into a robust ₹200+ crore enterprise in less than five years. And no, it’s not just another boring textile mill. With a CAGR of over 116% in revenue, a high PAT margin of 11.85%, and a modern, vertically integrated setup, Borana Weaves is now making a bold debut on Dalal Street.

But here’s the real question:
Is this IPO just weaving hype, or is it a genuine fabric of fortune?

Let’s break down the details—from the price band to peer valuation—so you can make an informed call before subscribing (or swiping left).

Borana Weaves IPO Details

Borana Weaves Limited is gearing up to hit the primary market with a fresh issue of 70,00,000 equity shares, likely opening for subscription on May 20, 2025. The issue proceeds will fund a new manufacturing unit, working capital, and general corporate expenses.

IPO Snapshot

Particulars	Details
IPO Open Date	May 20, 2025
IPO Close Date	May 22, 2025
Listing Date	May 27, 2025 (tentative)
Issue Type	Book Built Issue
Face Value	₹10 per share
Issue Price Band	₹205 to ₹216 per share
Lot Size	69 Shares
Fresh Issue Size	₹144.89 Cr
Offer for Sale (OFS)	None
Total Issue Size	70,00,000 shares [₹144.89 Cr]
Listing At	NSE, BSE
Promoter Holding (Pre)	87.19%
Promoter Holding (Post)	To be updated

IPO Reservation

Category	Shares Offered
QIB (Institutions)	Not less than 75%
NII (HNI)	Not more than 15%
Retail Investors	Not more than 10%

Borana Weaves IPO Objective

What’s the company planning to do with your money? Surprisingly, not buy fancy offices or splurge on marketing. The entire IPO is a fresh issue—which means the funds are going directly into business expansion and operational strength.

Here’s the breakdown:

1️⃣ New Manufacturing Unit – ₹71.3 Cr

Borana Weaves is setting up a brand-new production facility in Surat to expand grey fabric manufacturing capacity. Given their rising demand and consistent customer base, this move could cement their dominance in the unbleached fabric market.

2️⃣ Working Capital – ₹26.5 Cr

Running a textile business means managing a large supply chain—from raw polyester yarn to weaving, texturizing, and folding. This working capital boost will help them manage orders efficiently and avoid cash-flow bottlenecks.

3️⃣ General Corporate Purposes

The rest will go towards brand-building, administration, and other strategic expenses that keep the business humming smoothly.

Business Model: How Borana Weaves Makes Money

Borana Weaves isn’t your typical old-world textile company. Instead, it’s positioned itself as a key B2B manufacturer in the synthetic textile supply chain, with a clear focus on unbleached grey fabric and polyester textured yarn (PTY Yarn).

Think of their grey fabric as a “blank canvas” used by fashion brands, home décor companies, and traditional textile businesses. These clients don’t want finished products—they want base fabric that can be dyed, printed, or customized later. That’s where Borana comes in.

Here’s how the operations flow:

1. Raw Material Procurement: Polyester Oriented Yarn (POY Yarn) is sourced from suppliers.
2. Processing: POY Yarn is converted into PTY Yarn through a heat-based texturizing process.
3. Fabric Manufacturing: The PTY Yarn is then used to weave grey fabric using modern water jet looms.
4. Dispatch: Finished unbleached fabric is sold to processors, exporters, or wholesalers across India.

This vertically integrated approach allows Borana to control quality, reduce costs, and scale operations without depending on third-party vendors.

Revenue Breakdown: Fabric Is King

Borana Weaves’ revenue is clearly anchored in grey fabric, which accounts for the lion’s share of sales. But the company also benefits from the sale of polyester textured yarn (PTY Yarn)—a key input in its fabric production—along with minor contributions from byproducts like downgraded material and beam sales.

Here’s the breakdown of product-wise revenue over the last few years:

Revenue by Product Category

Particulars	H1 FY25 (₹ lakh)	% of Ops	FY24 (₹ lakh)	% of Ops	FY23 (₹ lakh)	% of Ops	FY22 (₹ lakh)	% of Ops
Grey Fabric	10,517.51	79.06%	14,366.13	72.17%	8,541.31	63.08%	1,941.08	45.85%
PTY Yarn	2,643.68	19.87%	5,260.17	26.43%	4,572.53	33.77%	2,149.76	50.78%
Other Products	142.29	1.07%	279.26	1.40%	426.06	3.15%	142.57	3.37%
Total Revenue	13,303.48	100.00%	19,905.56	100.00%	13,539.90	100.00%	4,233.40	100.00%

📌 Insight: Over the years, the company has transitioned from being yarn-heavy to fabric-focused. This shift suggests greater value addition and aligns with Borana’s vision of becoming a key supplier in the post-processing textile value chain.

Customer Base: Wide But Improving Concentration

Borana Weaves has managed to expand its clientele while gradually reducing its over-reliance on a few large buyers—a great sign for long-term business stability.

Let’s look at the customer concentration:

Top Customer Contribution

Metric	H1 FY25 (%)	FY24 (%)	FY23 (%)	FY22 (%)
Top 1 Customer	10.83%	16.49%	26.15%	34.77%
Top 5 Customers	35.76%	39.00%	50.22%	65.53%
Top 10 Customers	52.64%	54.75%	63.18%	79.65%

📌 Takeaway: The share of the top 10 customers in overall revenue has decreased significantly—from nearly 80% in FY22 to 52.64% in the first half of FY25. That’s a positive trend, showing that Borana is building a more diversified and resilient revenue base.

Financials: Lean, Profitable, and Fast-Growing

Despite being a relatively young company—established just in 2020—Borana Weaves has turned in a solid financial report card that most legacy textile firms would envy. With surging revenues, widening profit margins, and improving asset strength, it’s stitching a story that combines both growth and profitability.

Here’s a summary of its financials over the last three years and the latest half-year period:

Restated Consolidated Financials (₹ in Crore)

Particulars	H1 FY25 (Sep 2024)	FY24	FY23	FY22
Revenue	₹137.08	₹199.60	₹135.53	₹42.36
PAT (Profit After Tax)	₹17.90	₹23.59	₹16.30	₹1.80
Total Assets	₹139.37	₹137.05	₹74.98	₹31.90
Reserves & Surplus	₹45.47	₹47.66	₹24.07	₹1.80
Total Borrowings	₹66.13	₹76.74	₹42.41	₹22.86

What Do the Numbers Say?

• Revenue has jumped nearly 5x in 3 years, from ₹42 crore in FY22 to ₹200 crore in FY24.
• Profit after tax (PAT) has also multiplied over 13x, showing strong operational leverage and cost control.
• Total borrowings have increased, but in proportion to growth. The company appears to be using debt efficiently for expansion.
• Reserves & Surplus have grown consistently, reflecting retained profits and business reinvestment.

Key Ratios That Matter

Metric	Value	What It Means
ROE	49.45%	Outstanding return on equity; shows efficient use of capital.
ROCE	27.42%	Strong return on total capital employed in the business.
RoNW	49.77%	High returns on net worth—a sign of value-generating growth.
PAT Margin	11.85%	Very healthy for a textile firm; shows solid profitability.

📌 Interpretation: These are stellar numbers for any manufacturing company, let alone one that’s barely five years old. Borana Weaves has managed to scale fast without compromising on margins—a rare feat in the price-sensitive textile industry.

Valuation: A Niche Play With No Listed Peers

Here’s the challenge with valuing Borana Weaves: There are no direct listed competitors in India—or even globally—with the same business mix of unbleached grey fabric and in-house polyester yarn manufacturing.

Unlike FMCG or tech IPOs that come with a buffet of listed peers, Borana operates in a narrow B2B textile niche that hasn’t hit the stock market limelight yet. The company even acknowledged this in its DRHP, stating:

“The Company does not have any listed industry peers in India or abroad and it may be difficult to benchmark and evaluate our financial performance against other companies that operate in the same industry as that of Company.”

So How Do We Value It?

In absence of listed comparables, investors typically look at a few key aspects:

1. Earnings Growth: With PAT rising from ₹1.8 Cr in FY22 to ₹23.6 Cr in FY24, Borana has delivered a CAGR of over 200% in bottom-line growth.
2. Return Ratios: An ROE of 49.45% and ROCE of 27.42% would make even large-cap manufacturing firms jealous. These are signs of capital efficiency and high internal rate of return.
3. Profitability: A PAT margin nearing 12% in textiles is not just healthy—it’s exceptional. Most listed textile firms operate at sub-5% margins.
4. Debt-to-Equity: Though borrowing has increased, the company’s balance sheet still shows strength, supported by growing reserves.

If priced reasonably, Borana Weaves could enter the market as a valuation trailblazer, potentially setting the benchmark for future textile IPOs in its niche.

Listing Gain Outlook: Borana Weaves IPO Buzzes with Strong GMP

The Borana Weaves IPO has caught the attention of the market, and the grey market premium (GMP) reflects strong investor interest. Though GMP is unofficial, it offers a sneak peek into possible listing day performance.

Here’s how the premium has moved over the last two days:

GMP Date	IPO Price	GMP	Estimated Listing Price	Estimated Profit*
16-May-2025	₹216.00	₹58 ⬇️	₹274 (26.85%)	₹4,002 per lot
15-May-2025	₹216.00	₹63 ⬆️	₹279 (29.17%)	₹4,347 per lot

Even with a slight dip in GMP from ₹63 to ₹58, the expected listing price remains comfortably above the issue price—suggesting a potential gain of over ₹4,000 per lot. That’s a strong 26–29% upside, making Borana Weaves one of the most talked-about mainboard IPOs this month.

📌 Note: GMP is unofficial and can change quickly. Use it as an indicator, not a guarantee.

Conclusion: Listing Pop or Long-Term Compounder?

Borana Weaves IPO is not your typical front-page, flashy unicorn story. But behind the quiet name is a company that has:

✅ Grown revenue at a 100%+ CAGR
✅ Delivered industry-beating margins
✅ Built a diversified customer base
✅ Expanded operations without over-leveraging

From a listing perspective, the IPO is priced fairly, so it may offer a decent debut pop, especially if grey market activity picks up and broader market sentiment remains supportive.

But the real opportunity lies in the long term. Borana is quietly building itself into a backbone supplier for downstream textile processors in India’s ever-growing fashion, home, and technical fabric industry. With its promoters bringing decades of experience and its manufacturing already scaled, the company could be well-positioned to keep growing profitably post-listing.

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FAQs: Borana Weaves IPO

What is the Borana Weaves IPO date?

The IPO is tentatively scheduled to open on May 20, 2025, and close on May 22, 2025.

What does Borana Weaves do?

The company manufactures unbleached synthetic grey fabric and polyester textured yarn (PTY Yarn), used across fashion, home décor, and technical textile sectors.

Is Borana Weaves a profitable company?

Yes, the company reported a PAT of ₹23.6 crore in FY24 with an 11.85% PAT margin and an ROE of 49.45%.

Is there any GMP available?

As of now, Grey Market Premium (GMP) for Borana Weaves IPO has not started. It typically becomes active a few days before the IPO.

Should I invest in Borana Weaves IPO?

If you’re looking for a high-growth, niche textile manufacturer with strong financials and low customer concentration risk, this IPO is worth considering—especially for long-term gains.

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