Borana Weaves IPO

About Borana Weaves IPO

Borana Weaves Ltd is launching its Initial Public Offering (IPO) as a book-built issue comprising a fresh issue. The IPO will open on TBA and close on TBA. The credit of shares will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.

Objectives of Borana Weaves IPO

• Financing the establishment of a new manufacturing unit (Proposed Unit 4) in Surat, Gujarat, to expand production capabilities for grey fabric.

• Funding incremental working capital requirements to support the company's operations.

• Allocating proceeds for general corporate purposes to enhance efficiency and meet business needs

Industry Outlook For Borana Waves Ltd

India's textile industry, a global leader, recorded exports of over USD 44 billion in FY 2022, contributing 15% of the country’s export earnings and 4.6% of global textile trade.

The sector’s growth is led by ready-made garments, cotton textiles, and man-made fibres, supported by rising global demand and initiatives like the Production Linked Incentive (PLI) scheme. Diversification and innovation in technical textiles and sustainability are further driving progress. By FY 2026, India’s textile exports are expected to grow to USD 65 billion, with a strong focus on man-made fibres and technical textiles, solidifying its role as a global textile powerhouse.

Company Information For Borana Waves Ltd

Borana Weaves Limited, based in Surat, specialises in producing unbleached synthetic grey fabric, a foundational material for industries such as fashion, technical textiles, home décor, and interior design.

The company operates in a niche, competitive market, leveraging advanced water jet looms to enhance operational efficiency, reduce labour reliance, and improve product quality. Its strategic location in Surat, a textile hub, provides access to raw materials like POY Yarn and enables effective regional operations.

The use of water jet looms ensures uniform fabric texture, lower waste, and sustainable production by reducing energy consumption and eliminating harmful chemicals in the process. In addition to grey fabric, our Company also manufactures polyester textured yarn (“PTY Yarn”), which is produced by heating polyester oriented yarn (“POY Yarn”), their raw material used in the production of grey fabric.

Risks of Borana Weaves Ltd IPO

1. Intellectual Property Risk

Borana Weaves' inability to obtain or protect its intellectual property rights may harm its business. Key concerns include unregistered trademarks for corporate logos, leaving them vulnerable to infringement. Potential costs and distractions from defending against future infringement claims. Risk of losing reputation, goodwill, and business prospects if trademarks are not secured or maintained. This risk could negatively impact the company's financial performance and market price of its Equity Shares

2. Competitive Business Environment Risk

Borana Weaves operates in a highly competitive Indian textile industry. Existing players and new entrants exert pricing pressures, reducing operating margins and profitability. The company must meet exacting quality standards, enhance manufacturing capabilities, and improve operating efficiencies to remain competitive.

3. Dependence on Suppliers for Raw Materials

Borana Weaves relies heavily on major suppliers for POY Yarn, its primary raw material. However, the company lacks long-term agreements with these suppliers, making it vulnerable to supply changes or cancellations.

This could adversely impact production schedules, business, financial condition, and results of operations. The company's reliance on suppliers for raw materials poses a significant risk, as any supply disruptions could hinder its ability to manufacture grey fabric and PTY Yarn, ultimately affecting its revenue and profitability.

IPO Registrar and Book Running Lead Manager

KFIN Technologies Limited is the registrar of the Borana Weaves Ltd IPO. The book-running lead manager is:

• Beeline Capital Advisors Private Limited

Borana Waves Ltd Company Business Model

Borana Weaves Limited, established in 2020 and based in Surat, Gujarat, is a leading manufacturer of synthetic grey fabric and polyester textured yarn. The company operates with a current production capacity of 233.28 million meters annually across three units and is expanding with Unit 4, adding 112.75 million meters capacity by June 2025.

Borana Waves Ltd Company Growth Trajectory

Borana Weaves Limited is experiencing robust growth driven by strategic expansions and market positioning. Operating three units with a total production capacity of 233,280,000 meters per annum, the company is building Unit 4 at Hojiwala Industrial Estate, Surat, to add 112,752,000 meters per annum, increasing total capacity by 48% to 346,032,000 meters. This ₹7,1.3477 lakhs project is set to commence production by June 2025.

Borana Weaves has demonstrated significant growth over the past three fiscal years. In FY 2024, the company reported revenue of INR 1,99.1 crores, marking a substantial increase from INR 1,35.4 crores in FY 2023 and INR 42.3 crores in FY 2022. The EBITDA also rose notably, reaching INR 41.2 crores in FY 2024, compared to INR 26.1 crores in FY 2023 and INR 5. 2 crores in FY 2022.

With India’s synthetic textiles market projected to grow from 4 million tonnes in 2024 to 6.7 million tonnes by 2025, Borana Weaves is poised to capitalise on this demand, focusing on the polyester grey fabric used across fashion, sportswear, and home décor.

Borana Waves Ltd Company Market Position:

As the company operates in a competitive landscape with relatively few players of comparable scale in the grey fabric sector, Borana Weaves has established a significant market presence. The company has developed strong relationships with its customers, facilitating consistent demand for its products.

How do you check the allotment status of Borana Weaves IPO?

You can check the allotment status of shares either on the Bombay Stock Exchange (BSE) website or on the website of Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt.
• Select the Issue Name from the drop-down. The issue name is the company’s name, Borana Weaves Ltd.
• Enter your application number or PAN number.
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

To check status on the website of Borana Weaves Ltd IPO?

• Visit the website of Link Intime Private Ltd
• Click on IPO Allotment Status
• Choose the name of the company from the ‘Select Company’ dropdown
• Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
• Click on Submit to check the status

How do I apply for Borana Weaves Ltd IPO?

Here are the steps to apply for Borana Weaves Ltd IPO:

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.