IPO Frenzy: Belrise Industries Fully Subscribed, Borana Weaves Draws 56x Bids

IPOs this week: The primary market is buzzing again with heightened investor action, with mainboard initial public offerings (IPOs) getting fully subscribed this week. Both Borana Weaves and Belrise Industries received a decent bidding response from investors.

According to BSE data, Belrise Industries received bids for 24,82,15,318 shares against 17,70,58,824 shares on offer, resulting in an oversubscription of 1.40 times, as of 12:19 PM on May 22. Borana Weaves followed suit, receiving bids for 23,60,82,948 shares versus 36,89,457 shares on offer, translating to an oversubscription of 63.99 times.

IPO GMP

GMP or grey market premium refers to the price level at which the shares of the company trade in the grey market before hitting the official bourses. As per investor gain website, the shares of Borana Weaves were trading at a GMP of Rs 54, commanding a premium of over 25% at 12:28 pm.

Meanwhile, Belrise Industries' shares were trading at a GMP of Rs 17, commanding a premium of over 18.89%, indicating robust investor interest.

Other Details

Borana Weaves is planning to raise Rs 144.89 crore via the public offering. The IPO consists of a fresh issue of 0.67 crore shares with no fresh issue. The tentative date of listing on the bourses is fixed on May 27 (Tuesday). The price band is set between Rs 205 and Rs 216 per share. Belrise Industries is planning to raise Rs 2,150 crore via a fresh issue with no offer-for-sale (OFS). The price band for the public offering is set at Rs 85 to Rs 90 per equity share.

Analyst View for Belrise Industries

"At the upper band, the company is valued at 26x its FY24 EPS. Following the issuance of equity shares, the company's market capitalisation stands at Rs 80,089 million, with a market cap-to-sales ratio of 1.07 based on its FY24 earnings," Anand Rathi brokerage firm said in its report.

"The company is focusing on increasing its content per vehicle, along with focusing on EVs, 4-wheelers and commercial vehicles. We believe that the issue is fairly priced and recommend 'Subscribe – Long Term' rating to the IPO," the brokerage firm added.

Analyst View for Borana Weaves

"We believe that company’s shift to water jet loom could benefits over long term with high yields further capitalising its top and bottom lines additionally changing fashion trends, rising brand awareness, and fast-changing styles are boosting demand for India’s synthetic textiles stand to gain in both domestic and exports," the brokerage firm said in its report and has recommended a 'SUBSCRIBE' for long term call.