Borana Weaves IPO Day 2: Latest GMP, Subscription Status- Should You Apply or Not?

Borana Weaves IPO GMP: The textile manufacturing firm is all set to make its D-street debut next week. Borana Weaves IPO continued to witness strong investor attention during the bidding period. On Day 2, the IPO was subscribed 17.26 times overall, with the highest interest coming from retail individual investors (RIIs). As of 12:28 PM, the RII quota was subscribed 49.82 times.

The bidding period will conclude on May 22, 2025 (Thursday) and the tentative listing date is currently set for May 27, 2025 (Tuesday). The company is planning to raise Rs 144.89 crore, and consists of a fresh issue of 67.08 lakh equity shares with no offer for sale (OFS).

Borana Weaves IPO GMP

GMP or grey market premium refers to the price level at which the company's shares trade in the grey market before hitting the official bourses. As of 12:40 am, the shares of Borana Weaves were trading at a GMP of Rs 52, commanding a premium of over 24.07%, according to Investor Gain website.

Beeline Capital Advisors Pvt Ltd is the sole book-running lead manager of the IPO. Investors need to apply for at least one lot of 69 shares, which requires a minimum investment of Rs 14,145. The price band for the issue is set at Rs 205 to Rs 216 per share.

Should You Subscribe?

The company is planning to use the proceeds to finance a new manufacturing unit aimed at expanding its product capabilities, meeting incremental working capital needs and for general corporate purposes.

On valuation parse, based on annualised FY25, it is seeking PE of 14.7 times, FY24 earnings PE stands at 24.4 times and post issue market cap comes at Rs 5,755 million with this the issue is fully priced, as per Anand Rathi brokerage firm.

"We believe that company’s shift to water jet loom could benefits over long term with high yields further capitalizing 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. Therefore, we recommend the issue can be considered as SUBSCRIBE for long term," the brokerage firm said in its report.

However, the company is highly dependent on a single product category with all its units located in Surat. Plus, the textile business requires high working capital.