Borona Weaves IPO Subscription Status and Updates

The Borona Weaves IPO received a good response from investors, with a subscription of 2.89x by the mid of Day 1. The company is offering shares in a price band of Rs 205 to Rs 216 per share, with a minimum lot size of 69 shares. The Rs 144.89 crore IPO consists wholly of a fresh issue of Rs 144.89 crore. Stay tuned for the latest updates on the Borona Weaves IPO subscription status as the offering progresses."

Borona Weaves IPO Subscription Status - Day 1

By the end of Day 1, the Borona Weaves IPO had an overall subscription of 2.89x. The retail category was subscribed at 10.65x, while Non-Institutional Investors (NIIs) subscribed at 3.48x, and Qualified Institutional Buyers (QIBs) subscribed at 0.01x.

Company Overview of Borona Weaves IPO 

Borona Weaves was established in 2020 and is headquartered in Surat, Gujarat. It is a textile manufacturing company specializing in the production of unbleached synthetic grey fabric. This versatile fabric finds application across a wide range of sectors, including fashion, traditional textiles, home decor, and interior design, making is a critical component in the supply chain. In addition to grey fabric, the company also produces polyester textured yarn (PTY Yarn), which is manufactured by heating polyester-oriented yarn (POY Yarn).

The company operates through three manufacturing units located in Surat, which, as of December 31 2024, has 15 texturizing machines, 6 warping machine, 700 water jet looms, and 10 folding machines. These facilities enable Borona Weaves to maintain efficient and large-scale production. 

Over the years, Borona Weaves has built strong ties with wholesalers in Gujarat, supported by its direct regional operations. This has helped the company establish a loyal and expanding customer base. In FY24, it catered to 170 customers, generating revenue of Rs 199.05 crore. Furthermore, in the first nine months of FY25 alone, the company served 204 customers, with revenue rising to Rs 211.61 crores, reflecting consistent growth in its operations. 

Strengths of Borona Weaves IPO

• Versatility of grey fabric:
  Borona Weaves produces synthetic grey fabric that complements various unbleached fabrics and styles, making it a valuable asset in the textile supply chain. The company is also well-placed to tap into the rising demand in this segment.

• Strong regional presence:
  With its operations in Surat, Borona Weaves benefits from close ties with suppliers and customers. Its proximity to major textile hubs like Ahmedabad and Mumbai enhances market reach and connectivity. 

• Advanced manufacturing technology:
  The use of water jet looms improves production efficiency, ensures consistent fabric quality, reduces yarn breakage, and minimizes waste, which offers a clear advantage over traditional methods.

• Experienced leadership:
  Led by the industry-experienced promoters, Borona Weaves has built strong stakeholder relationships and leveraged deep technical expertise to drive steady growth and operational expansion. 

Risks of Borona Weaves IPO 

• Revenue concentration risk:
  As of December 31, 2024, more than 98% of Borona Weaves’ revenue is generated from customers in Gujarat. The absence of long-term contracts increases the company’s exposure to risks from order cancellations or sudden changes in demand. 

• Regional dependency:
  With its offices, manufacturing units, and 90% of raw material suppliers based in Gujarat, the company faces potential risks from region-specific issues, such as regulatory shifts, labour unrest, or natural disasters. 

• Supplier dependency on promoter entities:
  Borona Weaves sources its primary raw material, PoY yarn, from entities within the promoter group. Any disruption or discontinuation of these supply arrangements could significantly impact its operations and financial stability. 

• Product concentration risk:
  Grey fabric remains as the company’s core product, and contributed 84.24% of the revenue in the first nine months of FY25. Any drop in its demand, production capacity, or pricing could adversely affect the overall business performance. 

Borona Weaves IPO Financial Overview

Since the commencement of its operations, Borona Weaves has demonstrated outstanding financial performance, with revenues growing nearly fivefold, from Rs 42.33 crore in FY22 to Rs 199.05 crore in FY24. This impressive growth translates to a compound annual growth rate (CAGR) of 116.84% over three financial years. 

The company’s profitability has kept pace with this growth, with net profit rising from Rs 1.79 crore in FY22 to Rs 23.58 crore in FY24. During this period, profit margins improved significantly from 4.25% to 11.85%, indicating enhanced operational efficiency and effective cost management as the business has scaled.

The upward trajectory continued into FY25, with the first nine months alone surpassing previous full-year performances. For this period, the company reported revenue of Rs 211.61 crore and a net profit of Rs 29.30 crore, underlining its strong market momentum. The operating cash flows have also grown consistently, reaching Rs 25.77 crore in the same nine-month period, which demonstrates the company’s ability to fund daily operations comfortably. 

Borona Weaves has also delivered exceptional return ratios, with a Return on Equity (ROE) of 27.42% and Return on Capital Employed (ROCE) of 49.45%, reflecting both high shareholder value creation and efficient use of capital. These figures collectively highlight the company’s robust financial health and its strong positioning within the textile manufacturing industry. 

Borona Weaves IPO Details

• IPO Date: May 20, 2025 to May 22, 2025

• Issue Price: Rs 205 - Rs 216 per share

• Lot Size: 69 shares

• Total Issue Size: 67,08,000 shares (amounting to Rs. 144.89 Cr)

• Fresh Issue: 67,08,000 shares (amounting to Rs. 144.89 Cr)

• Allotment Date: May 23, 2025

• Listing Date: May 27, 2025

How to Apply for Borona Weaves IPO

• Visit the Rupeezy app.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per the lot size. 

• Submit to complete the order.