Borana Weaves IPO: GMP signal over 25% listing gains; check details

The initial public offering (IPO) of Borana Weaves, which is set to open next week, is signaling a decent listing pop for the investors, if one goes by the current grey market premium (GMP) trends from the unofficial market for the issue. The GMP space has been active since the price band for the issue has been formally announced.

Since the announcement of the price, Borana Weave's IPO is commanding a grey market premium of Rs 55 per share, suggesting a 25.46 per cent gain for the investors. Investors getting the allotment, post issue, can make a profit of Rs 3,795 on every lot of 69 equity shares, if the current trends continue.

The IPO of Borana Weaves shall open for bidding on Tuesday, May 20 and can be subscribed till Thursday, May 22. The company is selling its shares in the range of Rs 205-216 per share, which can be applied in 69 equity shares and its multiples thereafter. The company is looking to raise a total of Rs 144.89, which is entirely a fresh share sale of 67,08,000 equity shares.

Incorporated in 2020, Surat-based Borana Weaves is a manufacturer of unbleached synthetic grey fabric. Its unbleached synthetic grey fabric is often widely used as a base for further processing (including dyeing and printing) in industries such as fashion, traditional textiles, technical textiles, home decor, interior design, etc.

For the nine months ended on December 31, 2024, Borana Weaves reported a net profit of Rs 29.31 crore with a revenue of Rs of Rs 215.71 crore. Its net profit stood at Rs 23.59 crore with a revenue of Rs 199.90 crore in the year 2023-24. The company shall command a net total market capitalization of Rs 575.54 crore.

The company has reserved 75 per cent of the issue for the qualified institutional bidders (QIBs), while non institutional investors (NIIs) will have 15 per cent of the allocation. Retail investors will have only 10 per cent of allocation in this IPO. Anchor book for the issue shall open on Monday, May 19.

Beeline Capital Advisors is the sole book-running lead manager of the Borana Weaves IPO, while Kfin Technologies is the registrar for the issue. Allotment of the shares shall be finalized on Friday, May 23. Shares of the company shall be listed at both BSE and NSE with May 27, Tuesday as the tentative date of listing.