The Borana Weaves IPO is set to close today, May 22, 2025. The price range for the shares is between Rs 205 and Rs 216. The IPO has garnered significant interest, being oversubscribed 29 times, especially among retail investors.
GMP of Borana Weaves IPO
The grey market premium (GMP) for the Borana Weaves IPO is currently around Rs 52 to Rs 60. This suggests a potential listing gain of approximately 24% to 28% over the issue price, which is set between Rs 205 and Rs 216 per share. The IPO is expected to close today, May 22, 2025.
Overview of Borana Weaves
Borana Weaves Limited, established in 2020, has quickly positioned itself as a leading manufacturer of unbleached synthetic grey fabric in Surat, Gujarat. The company's grey fabric is versatile, serving as a base for dyeing and printing, and caters to various industries, including fashion, home decor, and technical textiles.
Key Highlights:
Product Range: Borana Weaves specializes in unbleached synthetic grey fabric and also produces polyester textured yarn (PTY) by processing polyester oriented yarn (POY), which is a crucial raw material for its grey fabric.
Manufacturing Infrastructure: The company operates three advanced manufacturing units in Surat, equipped with:
- 15 texturizing machines
- 6 warping machines
- 700 water jet looms
- 10 folding machines
This robust infrastructure enables high-quality production for both domestic and international markets.
Technological Advancements: By employing cutting-edge textile technologies, Borana Weaves ensures efficient production processes and maintains high standards of quality, which supports its growth trajectory.
Borana Weaves Limited's focus on advanced manufacturing capabilities and a diverse product range positions it well in the competitive textile industry, driving its growth and market presence.
Promoters of Borana Weaves Limited
The promoters of Borana Weaves Limited include:
1. Mangilal Ambalal Borana
2. Ankur Mangilal Borana
3. Rajkumar Mangilal Borana
4. Dhwani Ankur Borana
Additionally, the promoter group includes family entities such as:
- Mangilal Ambalal Borana HUF
- Ankur Mangilal Borana HUF
- Rajkumar Mangilal Borana HUF
- Borana Filaments Private Limited
These promoters bring valuable knowledge and experience in the textile industry, guiding the company's strategic direction and operational decisions. Their expertise is instrumental in navigating the competitive landscape and driving the growth of Borana Weaves Limited.
Financial Analysis of Borana Weaves Limited
Borana Weaves Limited has demonstrated impressive financial growth over recent years:
Financial Performance:
Revenue Growth:
- FY23: ₹135.53 crore
- FY24: ₹199.60 crore
- Growth: 47.27%
Net Profit Growth:
- FY23: ₹16.30 crore
- FY24: ₹23.59 crore
- Growth: 44.72%
Compound Annual Growth Rate (CAGR):
- Revenue CAGR: 117.07% over the last two years
- Net Profit CAGR: 262.02% over the last two years
Performance in 9M FY25:
- Revenue: ₹215.71 crore
- Net Profit: ₹29.31 crore
Borana Weaves Limited has shown robust growth in both revenue and net profit, reflecting strong operational performance and market demand. The significant CAGR figures indicate a rapidly expanding business, positioning the company favorably within the textile industry.
Strengths And Weaknesses of Borana Weaves Limited
Strengths of Borana Weaves:
1. Strong Growth Trajectory: The company has demonstrated significant growth in both income and profits.
2. Advanced Manufacturing Capabilities: Borana Weaves utilizes advanced manufacturing technologies, including water jet looms, which enhance production efficiency and quality.
3. Focus on Niche Products: The company specializes in unbleached synthetic grey fabric, catering to specific market needs.
Weaknesses of Borana Weaves:
1. Recent Establishment: Founded in 2020, Borana Weaves is relatively new in the market, which may present challenges in establishing brand recognition and customer loyalty.
2. Market Competition: As a new entrant, the company may face stiff competition from more established players in the textile industry.
While Borana Weaves has strong growth potential and advanced manufacturing capabilities, its recent establishment may pose challenges in a competitive market.
Conclusion
The Borana Weaves IPO presents a compelling opportunity for investors, driven by the company's strong growth trajectory and robust operational capabilities. With a significant increase in revenue and net profit over the past fiscal years, the company demonstrates its potential for continued expansion in the textile industry. The advanced manufacturing facilities and strategic location in Surat, a textile hub, further enhance its operational efficiency and market competitiveness.
However, potential investors should also consider the inherent risks associated with the IPO. The company's heavy reliance on the textile sector exposes it to market fluctuations, and its limited geographical diversification compared to larger competitors may restrict growth opportunities. Additionally, the absence of historical market performance as a newly public entity adds a layer of uncertainty.
Borana Weaves Limited shows promise with its strong fundamentals and experienced leadership, investors should weigh the strengths against the weaknesses and market risks before making investment decisions. The IPO could be an attractive option for those looking to invest in a growing company within the textile sector, but due diligence is essential to understand the associated risks.
NOTE- This is not any recommendation or advice to any Stock or Fund please consult your financial adviser before any investment.
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