Borana Weaves IPO Date, Review, Price and Key Information

Borana Weaves Limited IPO is fully book build issue and it is entirely a fresh issue offer. The total offering consists of 0.70 crore shares.

The dates for the Borana Weaves IPO have not been announced yet.

The allotment process is expected to be finalized by [.]. The Borana Weaves IPO is scheduled to list on NSE, BSE, with a tentative listing date of [.].

The price band for the Borana Weaves IPO has not been announced yet.

Registrar for this IPO is KFIN Technologies Limited and lead managers for Borana Weaves IPO are Beeline Capital Advisors Private Limited.

IPO Schedule

IPO Open Date	-
IPO Close Date	-
IPO Allotment Date	-
Refund Initiation	-
Share credit in Demat	-
Listing Date	-

Key Details

Price Band	TBA
Lot Size	TBA
Face Value	₹10 Per Equity Share
Total Issue Size	7,000,000 Shares
Fresh Issue	7,000,000 Shares
Issue Type	Fresh Issue
Listing At	NSE, BSE

Share Reservation

Investor Category	Shares Offered
QIB	75%
Retail	10%
NII/HNI	15%

About Borana Weaves Limited Company

Borana Weaves Limited, based in Surat, Gujarat, specializes in manufacturing unbleached synthetic grey fabric and polyester textured yarn (PTY). Starting operations in 2020, the company now operates three manufacturing units equipped with modern textile technologies.

The Indian market is witnessing a surge in synthetic textiles, driven by affordability and evolving fashion trends. Borana Weaves caters to a diverse customer base, primarily in Gujarat. During the six months ended September 30, 2024, Fiscal 2024, 2023 and 2022, revenue from sales stood at ₹ 133.03 crore, ₹ 199.06 crore, ₹ 135.40 crore and ₹ 42.33 crore, respectively.

Key strengths include experienced promoters, advanced water jet loom technology, and strategically located manufacturing units. The company is expanding its production capabilities with a new unit in Surat. This expansion aims to leverage the growing demand for synthetic fabrics and enhance market share in the evolving textile landscape. The Company has organically grown its operations and has demonstrated an increase in revenues and profitability. Our revenue from operations grew at a CAGR of 116.84% from ₹42.33 crore in Fiscal 2022 to ₹199.06 crore in Fiscal 2024.

Borana Weaves Limited Financial Details

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	1393.65	1370.54	749.78	319.04
Revenue	1330.35	1990.56	1353.99	423.34
Profit After Tax	179.04	235.86	163.01	17.99
Net Worth	654.06	476.97	241.10	18.09
Reserves and Surplus	454.69	476.57	240.70	17.99
Total Borrowing	622.03	690.98	388.93	273.12

₹ In Crore

Key Performance Indicator

Basic EPS (in ₹)	Return on Net Worth (RoNW)	Net Asset Value (NAV)	Debt-Equity Ratio	Return on Equity (ROE)	Return on Capital Employed (ROCE)
11.83	49.77%	23.77		49.45%	27.42%

Offer Objectives

The company is launching a public issue of up to 70,00,000 equity shares to fund its expansion plans. The net proceeds will be used for three primary objectives:

Establishing a new manufacturing unit (Unit 4) in Surat, Gujarat, to produce grey fabric. The estimated cost for this is ₹ 7,134.77 lakhs (₹ 71.35 crore), which includes civil work, machinery purchase, and electrical expenses.
Funding incremental working capital requirements, with an allocated amount of ₹ 2,650.00 lakhs (₹ 26.50 crore).
General corporate purposes, with the amount not exceeding 25% of the gross proceeds.

The establishment of Unit 4 is expected to increase the company's installed capacity by 11,27,52,000 meters per annum, approximately a 48% increase. This new unit is projected to commence commercial production by June 2025.

The company has existing land via lease agreements for Unit 4, with a total area of 10,836.00 sq. mtrs, leased from various parties, at a total rent of ₹ 75,000/- per month. The schedule of deployment indicates that the majority of the funds for Unit 4 will be utilized in Fiscal 2025 (₹ 6,421.29 lakhs) and the remainder in Fiscal 2026 (₹ 713.48 lakhs). For working capital, ₹ 450 lakhs and ₹ 2200 lakhs are allocated for Fiscal 2025 and 2026, respectively.