The Indian textile industry is a key player in the global market and one of the major industries in India for exports and employment. One of the emerging players in this industry is Borana Weaves Ltd, and they are now stepping into the capital markets. The company’s IPO is all set for subscription from May 20, 202,5, to May 22, 2025, with a fresh issue size of ₹144.89 crores. In this blog we will take you through everything you need to know about the Borana Weaves IPO — from the business model to financials, strengths, risks, and more.
About the Company
Borana Weaves Limited is a textile manufacturing company, headquartered in Surat, Gujarat. The company specializes in the production of unbleached synthetic grey fabric. This fabric is used as a base material in various downstream processes like dyeing, printing, and finishing across various sectors such as:
- Fashion and apparel
- Traditional textiles
- Technical textiles
- Home décor and interior design
Sector Overview
India is the second-largest textile-producing country in the world, with synthetic textiles seeing accelerated growth. Rising demand for affordable, durable, and easy-care fabrics has made synthetic grey fabric a key component in the textile value chain.
Trends
- There is an increasing demand for synthetic, ready-made garments in domestic markets and export markets.
- Growing environmental awareness is driving the need for sustainable alternatives, an opportunity Borana can leverage with its unbleached fabric range.
Promoters and Their Experience
The company is backed by a promoter group with deep industry experience:
- Mangilal Ambalal Borana – Chairman and Managing Director with 24+ years in the textile industry.
- Ankur Mangilal Borana – CEO with over 13 years of experience.
- Rajkumar Mangilal Borana – CFO with 13+ years of financial leadership.
Objectives of the IPO
The IPO is a 100% fresh issue of 67.08 lakh equity shares of ₹144.89 crores. The proceeds will be used for:
- Establishing a new manufacturing unit for grey fabric in Surat
- Funding incremental working capital to support growth
- General corporate purposes
This move is part of the company’s strategy to increase capacity and efficiency to meet rising demand.
Peer Benchmarking (in INR Million)
| Major Textile Players | Revenue from Operations |
EBITDA | PAT | EBITDA Margin (%) |
PAT Margin (%) |
| Jindal Worldwide Limited | 1,861,424 | 148,712 | 67,486 | 8% | 4% |
| Vardhman Textiles Ltd. | 92,990 | 12,919 | 6,076 | 14% | 7% |
| Arvind Ltd. | 71,005 | 7,676 | 3,049 | 11% | 4% |
| KPR Mill Ltd. | 40,537 | 7,992 | 5,549 | 20% | 14% |
| Gokaldas Exports Ltd | 23,789 | 2,841 | 1,310 | 12% | 6% |
| Shahlon Group | 3,109 | 287 | 40 | 9% | 1% |
| Borana Weaves | 1,991 | 414 | 236 | 21% | 12% |
The operational performance of major companies in the textiles sector, such as Jindal Worldwide Limited, Vardhman Textiles Ltd., Arvind Ltd., KPR Mill Ltd., Gokaldas Exports Ltd., Shahlon Group, and Borana Weaves represents a diverse range of financial performance in FY 2024. Revenue numbers range from ₹1,861,424 million in the case of Jindal Worldwide to ₹1,991 million for Borana Weaves. The sector reveals the size at which these firms operate, each with its own market positioning and profitability.
IPO Details – Borana Weaves
| IPO Name | Borana Weaves |
| IPO Date | May 20, 2025 to May 22, 2025 |
| Issue Price Band | ₹205 to ₹216 per share |
| Lot Size | 69 Shares |
| Listing At | BSE, NSE |
| Allotment Date | May 23, 2025 |
| Listing Date | May 27, 2025 |
| Retail (Min) application lot & amount | 1 lot & ₹14,904 |
| Retail (Max) application lots & amount | 13 lot & ₹1,93,752 |
| Small -HNI (Min) lots & amount | 14 lots & ₹2,08,656 |
| Small -HNI (Max) lots & amount | 67 lots & ₹9,98,568 |
| Big -HNI (Min) lots & amount | 68 lots & ₹10,13,472 |
SWOT Analysis
Strengths
- Technological Advancements: High-speed, efficient production capacity.
- Focused Product Strategy: Exclusive focus on grey fabric brings specialization.
- Reputation: Known for quality and reliability.
- Vertical Integration: Operations like spinning and texturizing are in-house.
Weaknesses
- High Operating Costs: Advanced machinery comes at a cost.
- No International Exposure: Entirely dependent on domestic demand.
- Tech Dependence: Regular upgrades are financially intensive.
Opportunities
- Global Expansion: Exporting grey fabric could open new markets.
- Sustainable Textile Demand: Positioned to benefit from eco-conscious customers.
Threats
- Rising Competition: A Highly fragmented and competitive market.
- Raw Material Volatility: Synthetic fiber price fluctuations can affect margins.
- Regulatory Risks: Compliance costs may increase with tighter norms.
- Economic Downturn: A slowdown could impact textile demand.
Risk Factors
- Customer Concentration: Primarily reliant on Gujarat-based wholesalers.
- Environmental Impact: Synthetic fabric production is not eco-friendly.
- Regulatory Uncertainty: Textile industry faces potential changes in labor and pollution laws.
- High Capex and Tech Dependency: Heavy investment in machinery requires constant reinvestment.
Financials & Financial Ratios
| Particulars | Nine months period ended December 31, 2024 |
Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Revenue from Operations (₹ in Lakhs) | 21,161.52 | 19,905.56 | 13,539.90 | 4,233.40 |
| Growth in Revenue from Operations (%) | N.A. | 47.01% | 219.84% | N.A. |
| Gross Profit (₹ in Lakhs) | 8,265.36 | 7,657.64 | 4,911.91 | 1,183.07 |
| Gross Profit Margin (%) | 39.06% | 38.47% | 36.28% | 27.95% |
| EBITDA (₹ in Lakhs) | 4,603.16 | 4,117.31 | 2,606.41 | 517.46 |
| EBITDA Margin (%) | 21.75% | 20.68% | 19.25% | 12.22% |
| Profit After Tax (₹ in Lakhs) | 2,930.63 | 2,358.64 | 1,630.09 | 179.86 |
| PAT Margin (%) | 13.85% | 11.85% | 12.04% | 4.25% |
| RoCE (%) | 27.11% | 27.42% | 34.93% | 12.23% |
| RoE (%) | 38.16% | 49.45% | 67.61% | 99.45% |
| Fixed Assets Turnover Ratio (In times) | 3.02 | 2.68 | 3.86 | 2.67 |
| Net Working Capital days (In days) | 67.00 | 61.00 | 66.00 | 98.00 |
| Operating Cash Flows (₹ in Lakhs) | 2,577.01 | 2,213.26 | 689.60 | (832.62) |
Conclusion – Borana Weaves IPO
Borana Weaves IPO comes at a time when the Indian textile industry is poised for transformation. With a strong product focus, experienced leadership, and sound financial performance, the company seems to be on a promising growth trajectory.
With all investments, there are risks too, particularly its lack of global presence and reliance on capital-intensive machinery. So, if you are a long-term investor looking for a growth-oriented company from the textile industry, then Borana Weaves IPO is worth considering.
For in-depth information on the IPO, please refer to the RHP of the company. Also, refer our blog section for more useful articles on evaluating IPOs.
