Borana Weaves IPO subscribed 149 times on Day 3; NII portion booked 237 times: Check the latest GMP

Borana Weaves shares will be listed on both NSE and BSE on May 27. 

The public issue of Borana Weaves continued to see strong interest from investors on May 22, the third and final day of public bidding. The Rs 145-crore IPO of the textile company was subscribed nearly 149 times within the three days, with non-institutional investors (NII) overtaking retail investors by booking their reserved portion by a whopping 237 times.

The IPO received bids for 54.89 crore shares, as against its offer size of 36.89 lakh shares, according to data available on the NSE. While NIIs took the lead, retail investors followed closely by subscribing their reserved portion by over 200 times. The portion reserved for Qualified Institutional Buyers (QIBs) meanwhile was subscribed over 87 times times.

Borana Weaves launched the IPO comprising 67.08 lakh shares to raise Rs 144.89 crore at the upper price band. The IPO, which solely comprised a fresh issue of shares, was open for public bidding till May 22. The textile company had set a price band of Rs 205-216 per share for the IPO.

Investors could bid for 69 shares with a minimum investment of Rs 14,904, and in multiples thereafter. The shares of the company are likely to be listed on stock exchanges on May 27.

Borana Weaves IPO Grey Market Premium:

The unlisted shares of the company were trading at Rs 268 apiece in the grey market, as per data on Investorgain. This implies a grey market premium (GMP) of nearly 24 percent (Rs 52) over the IPO price of Rs 216 apiece.

According to IPO Watch, the unlisted shares were trading with a grey market premium of Rs 55 apiece over the IPO price at Rs 271 apiece.

Should you apply?

"Borana Weaves' IPO offers a compelling short-term opportunity, with strong listing gain potential driven by robust growth, healthy margins, and attractive GMP. The company's niche positioning and integrated manufacturing give it an edge, but high regional concentration and raw material volatility remain key risks," said Gaurav Garg from the Lemonn Markets Desk.

"At a P/E of 17.5x, valuations seem fair, making it a suitable pick for retail and HNI investors looking to capitalize on debut momentum—while long-term investors may want to monitor execution and expansion before committing," he added.

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Anand Rathi advised investors to subscribe to the IPO for long term. "Borana Weaves Ltd is involved in manufacturing and marketing of unbleached synthetic grey fabrics, catering primarily to the B2B segment. The versatility of grey fabric allows it to complement a wide range of unbleached fabrics across different styles, making it a valuable resource in the textile supply chain. This vertical integration gives Borana Weaves better control over quality, cost, and delivery schedules. The company is well-placed to establish direct and strategic regional presence to ensure efficient product delivery and maintain high levels of service responsiveness, thereby reinforcing customer trust and loyalty," the brokerage said.

The company intends to utilise IPO proceeds for establishing a new manufacturing unit to expand its production capabilities to produce grey fabric at Surat, Gujarat. Further, the funds will be used for incremental working capital requirements and general corporate purposes.

Beeline Capital Advisors is acting as the sole merchant banker for Borana Weaves' IPO.

Anchor Book:

A day before the IPO opened for subscription, the textile company raised Rs 65.2 crore from 11 institutional investors via an anchor book on May 19. The company, in its filing to exchanges, said it has finalised the allocation of 30,18,543 equity shares to anchor investors at Rs 216 per equity share. Pink Oak Global Fund, Innovative Vision Fund, Aarth EIF Growth Fund, Saint Capital Fund, Nexus Equity Growth Fund, and Sunrise Investment Trust were amongst 11 anchor investors.