Borana Weaves Limited, a textile manufacturer based in Surat, Gujarat, is launching its Borana Weaves Limited IPO. The company specializes in producing unbleached synthetic grey fabric and polyester textured yarn (PTY Yarn), catering to various industries including fashion, home decor, and technical textiles.
Borana Weaves Limited IPO Timeline
- Closing Date: May 22, 2025
- Basis of Allotment: May 23, 2025
- Refunds Initiation: May 26, 2025
- Credit to Demat Accounts: May 26, 2025
- Listing Date: May 27, 2025
Borana Weaves Limited IPO Details
- Issue Type: Book Built Issue
- Total Issue Size: 70,00,000 equity shares
- Fresh Issue: 70,00,000 equity shares
- Offer for Sale: None
- Face Value: ₹10 per share
- Price Band: To be announced
- Lot Size: To be announced
- Listing Exchanges: BSE and NSE
- Retail Quota: 10%
- QIB Quota: 75%
- NII Quota: 15%
Promoters of Borana Weaves Limited
- Mangilal Ambalal Borana
- Ankur Mangilal Borana
- Rajkumar Mangilal Borana
- Dhwani Ankur Borana
- Borana Filaments Private Limited
- Mangilal Ambalal Borana HUF
- Ankur Mangilal Borana HUF
- Rajkumar Mangilal Borana HUF
Mr. Mangilal Ambalal Borana
- Designation: Chairman
- Director Identification Number (DIN): 01091167
Mr. Rajkumar Mangilal Borana
- Designation: Whole-Time Director & Chief Financial Officer
- DIN: 01091166
Mr. Ankur Mangilal Borana
- Designation: Whole-Time Director & Chief Executive Officer
- DIN: 01091164
Ms. Dhwani Ankur Borana
- Designation: Individual Promoter
- DIN: 08937899
- Background: Ms. Dhwani Ankur Borana has been associated with Borana Weaves Private Limited since its incorporation in 2020. She has served as a director and is considered an individual promoter of the company.
These promoters collectively hold a significant share in the company and have been instrumental in its growth and strategic direction.
Their combined expertise spans various facets of the textile industry, including manufacturing, finance, and corporate governance.
Borana Weaves Limited IPO Promoter Holding
As of the latest available information, the promoter holding in Borana Weaves Limited is as follows:
- Pre-Issue Promoter Holding: 87.19%
- Post-Issue Promoter Holding: Data not yet disclosed
These promoters collectively held 87.19% of the company’s shares prior to the IPO. The exact post-issue shareholding will depend on the final allotment and subscription details, which are yet to be announced.
Grey Market Premium (GMP)
As of now, there is no available data on the Grey Market Premium (GMP) for the Borana Weaves IPO.
Company Overview
Borana Weaves operates three manufacturing units equipped with:
- 15 texturizing machines
- 6 warping machines
- 700 water jet looms
- 10 folding machines
The company serves a diverse customer base across Gujarat, Rajasthan, Uttar Pradesh, West Bengal, Haryana, and Delhi.
Financial Performance
| Fiscal Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA Margin | Net Profit Margin |
|---|---|---|---|---|
| 2022 | 42.33 | 1.80 | 12.22% | 4.25% |
| 2023 | 135.40 | 16.30 | 19.25% | 12.04% |
| 2024 | 199.06 | 23.59 | 20.68% | 11.85% |
| 2025 | 133.03 | 17.90 | — | 13.46% |
The company has achieved a Compound Annual Growth Rate (CAGR) of 116.84% over the last three financial years, indicating strong business expansion.
Valuation Metrics
Key financial ratios for FY 2024 include:
- Earnings Per Share (EPS): ₹11.83
- Return on Net Worth (RoNW): 49.77%
- Return on Capital Employed (ROCE): 27.42%
- Debt-to-Equity Ratio: 1.45
- Net Asset Value (NAV): ₹23.77
These figures reflect efficient capital utilization and a strong return profile.
Expert Opinions
As of now, detailed reviews from major brokerage firms are not available. However, based on the company’s strong financial growth, efficient operations, and experienced management, the IPO appears promising for long-term investors.
Potential investors should stay updated with official announcements regarding the price band and lot size, and consider consulting financial advisors before making investment decisions.
About Borana Weaves Limited
Borana Weaves Limited is a Surat-based textile manufacturer, incorporated on October 28, 2020. The company specializes in producing unbleached synthetic grey fabric and polyester textured yarn, catering to various industries including fashion, home décor, technical textiles, and interior design.
Company Overview
- Incorporation Date: October 28, 2020
- Registered Office: Plot No. AA/93, Sachin Udyognagar Shahkari Sangh Ltd, Village Sachin/Lajpor, Taluka – Chhoriyasi, Surat, Gujarat 394230, India
- Corporate Identification Number (CIN): U17299GJ2020PLC117745
- Authorized Share Capital: ₹30.00 crore
- Paid-Up Capital: ₹19.94 crore
- Company Status: Active
- Company Type: Public Limited Indian Non-Government Company
- Industry: Textile Manufacturing
- Website: www.boranagroup.in
Products and Services
Borana Weaves produces high-quality greige polyester woven fabrics and polyester textured yarn. The company’s products serve as base materials for various applications, including:
- Apparel and Garments: Processed into soft, garments for men and women.
- Home Textiles: Processed into soft, bedding products that offer a premium feel.
- Tent Fabrics: Processed into durable, weather-resistant materials for tent applications.
The company has a significant production capacity, producing 220 million metres of fabric annually.
Borana Weaves Limited Financial Information
Here is the detailed financial performance of Borana Weaves Limited for the fiscal years ending March 31, 2022, 2023, and 2024, along with the half-year ended September 30, 2024:
| Period Ending | Revenue from Operations (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) | EBITDA Margin | Net Profit Margin |
|---|---|---|---|---|---|
| 2022 (Mar 31, 2022) | 42.33 | — | 1.80 | 12.22% | 4.25% |
| 2023 (Mar 31, 2023) | 135.40 | — | 16.30 | 19.25% | 12.04% |
| 2024 (Mar 31, 2024) | 199.06 | 41.17 | 23.59 | 20.68% | 11.85% |
| 2025 (Sep 30, 2024) | 133.03 | 27.94 | 17.90 | — | 13.46% |
Key Highlights:
- Revenue Growth: The company has demonstrated a strong Compound Annual Growth Rate (CAGR) of 116.84% over the last three financial years, increasing revenue from ₹42.33 crore in 2022 to ₹199.06 crore in 2024.
- Profitability: Net profit rose from ₹1.80 crore in 2022 to ₹23.59 crore in 2024, indicating significant improvement in profitability.
- EBITDA Margin: The EBITDA margin improved from 12.22% in 2022 to 20.68% in 2024, reflecting enhanced operational efficiency.
- 2025 Performance: For the half-year ended September 30, 2024, the company reported revenue of ₹133.03 crore and net profit of ₹17.90 crore, suggesting continued strong performance.
Key Performance Indicator (KPI)
Here is a table summarizing the Key Performance Indicators (KPIs) for Borana Weaves Limited, based on their latest financial disclosures (2022 to 2024 and 2025):
| KPI | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 42.33 | 135.40 | 199.06 | 133.03 |
| EBITDA (₹ Cr) | ~5.17* | ~26.04* | 41.17 | 27.94 |
| EBITDA Margin (%) | 12.22% | 19.25% | 20.68% | — |
| Net Profit (₹ Cr) | 1.80 | 16.30 | 23.59 | 17.90 |
| Net Profit Margin (%) | 4.25% | 12.04% | 11.85% | 13.46% |
| Earnings Per Share (EPS) (₹) | — | — | 11.83 | — |
| Return on Net Worth (RoNW) (%) | — | — | 49.77% | — |
| Return on Capital Employed (ROCE) (%) | — | — | 27.42% | — |
| Debt-to-Equity Ratio | — | — | 1.45 | — |
| Net Asset Value (NAV) per share (₹) | — | — | 23.77 | — |
Highlights:
- Strong Growth: Revenue and profits have grown significantly year-over-year with a CAGR of ~117%.
- High Profitability: Both EBITDA and net profit margins have improved consistently.
- Strong Returns: RoNW of nearly 50% and ROCE of over 27% in FY 2024 indicate excellent capital efficiency.
- Healthy EPS: Indicates strong per-share profitability.
Objects of the Issue
- Funding capital expenditure for setting up a new manufacturing unit (referred to as Unit IV) located at Surat, Gujarat. This expansion is aimed at enhancing production capacity and meeting growing market demand.
- Meeting working capital requirements to support increased operations due to business growth and ensure smooth day-to-day activities.
- General corporate purposes, which may include brand building, administrative expenses, and strengthening the company’s financial position.
- Issue-related expenses, covering costs associated with the IPO process such as underwriting fees, legal and compliance charges, registrar fees, and listing fees.
Strengths of Borana Weaves Limited IPO
- Specialized Product Focus: Borana Weaves concentrates on unbleached synthetic grey fabric and polyester textured yarn, catering to industries like fashion, home décor, and technical textiles. This specialization allows the company to meet niche market demands effectively.
- Advanced Manufacturing Infrastructure: The company operates three manufacturing units in Surat, Gujarat, equipped with 700 high-tech water jet looms. This infrastructure enables high production efficiency and superior product quality.
- Strong Financial Performance: Borana Weaves has demonstrated robust financial growth, with revenue increasing from ₹42.36 crore in FY 2022 to ₹199.60 crore in FY 2024. The EBITDA margin improved from 12.22% to 20.68% over the same period.
- Strategic Expansion Plans: The company is setting up a new manufacturing unit (Unit IV) in Surat to expand its production capabilities, indicating a proactive approach to scaling operations.
- Sustainable Practices: Borana Weaves emphasizes sustainability by recycling millions of litres of water annually, minimizing environmental impact and aligning with global eco-friendly trends.
Risks of Borana Weaves Limited IPO
- Intellectual Property Vulnerabilities: The company lacks registered trademarks for its corporate logos, making it susceptible to infringement and potential legal disputes, which could affect its brand reputation and financial performance.
- Highly Competitive Industry: Operating in the Indian textile sector, Borana Weaves faces intense competition from established players and new entrants, which may lead to pricing pressures and reduced profit margins.
- Dependence on Key Suppliers: The company relies heavily on major suppliers for POY Yarn, its primary raw material. The absence of long-term agreements with these suppliers poses a risk of supply disruptions, potentially impacting production schedules and financial results.
- Debt Levels: As of FY 2024, Borana Weaves has a debt-to-equity ratio of 1.87, indicating a significant reliance on borrowed funds. High debt levels can affect the company’s financial flexibility and expose it to interest rate fluctuations.
- Market Demand Fluctuations: The company’s performance is closely tied to the demand in the textile industry. Any downturn in the market or changes in consumer preferences could adversely affect its revenue and profitability.
Conclusion:
Borana Weaves Limited exhibits strong operational capabilities and financial growth, making its IPO an attractive proposition for investors seeking exposure to the textile manufacturing sector. However, potential investors should carefully consider the associated risks, including intellectual property concerns, industry competition, supplier dependencies, and debt levels, before making investment decisions.
Borana Weaves Limited IPO Contact Details
Registered Office Address:
Borana Weaves Limited
Plot No. AA/34, B 16/16
Hojiwala Industrial Estate
Sachin, Surat, Gujarat – 394230
India
Email Contact:
Phone Number:
+91-40-67162222
Official Website:
Borana Weaves Limited IPO Registrar
The registrar for the Borana Weaves Limited IPO is KFin Technologies Limited, a leading registrar and transfer agent in India.
Contact Details for IPO-Related Queries:
- Phone Numbers: 040-67162222 / 040-79611000
You can use this portal to check your IPO allotment status by entering your PAN, application number, or DP ID/client ID.
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