Borana Weaves IPO Day 2: Subscribed 8.66 Times Overall; Check Live GMP, Allotment Dates & Should You Subscribe

The Borana Weaves IPO entered its second day of bidding on May 21, 2025, and it's already turning heads in the primary market. With strong demand from investors across categories, this Rs. 144.89 crore Mainboard IPO is gaining a lot of attention. The IPO will remain open for subscription until Wednesday, May 22.

Borana Weaves IPO Subscription Status on Day 2

Investor demand has been strong for the Borana Weaves IPO. By the second day of bidding, the retail investor portion has been oversubscribed 25 times. The Non-Institutional Investor (NII) category has seen 11.64 times subscription. The Qualified Institutional Buyer (QIB) portion was subscribed to 1.54 times. Overall IPO subscription now stands at 8.66 times the total issue size.

Borana Weaves IPO GMP Today, May 21st

As per the latest grey market updates from the Investor Gain website, the Borana Weaves IPO GMP (Grey Market Premium) is Rs. 56 as of May 21.

The IPO Price Band is Rs. 216 per share, including the GMP (the estimated listing price: Rs. 272 (price + GMP)). The data suggest the expected listing gain is 25.93%.

The rising GMP shows that there is healthy demand in the unofficial market, which is often a positive indicator for potential listing gains.

Borana Weaves IPO Financials & Valuation

According to Minerva Capital Research, the IPO is priced at a P/E ratio of 24.4x based on FY24 earnings. P/E of 14.7x based on FY25 annualised earnings (9M-FY25) While the product is commoditised, Borana benefits from an experienced promoter team and efficient manufacturing capabilities and a strategic location in India's textile hub (Surat).

The IPO note further mentioned that "However, investors should note the presence of related-party transactions and bank guarantees worth Rs. 9.82 crore for a group company (Ricon Textile Pvt Ltd). Also, part of future growth is dependent on the timely operations of Unit 4.

Should You Subscribe to Borana Weaves IPO?

Analysts at Minerva Capital Research recommend a 'May Subscribe' rating. The company has shown good capacity utilisation (79.62% for 9M FY25) and plans to increase production further. With strong subscription numbers, positive GMP, and expected gains from expansion, Borana Weave's IPO looks promising for investors willing to take a moderate risk.

The Borana Weaves IPO is seeing high demand, especially from retail investors. With a strong GMP, growth potential, and positive sentiment in the textile sector, the IPO offers favourable short-term listing prospects and long-term business expansion value. Minerva Capital Research

About Borana Weaves Ltd.

Borana Weaves Limited, founded in October 2020, is a textile manufacturing company based in Surat, Gujarat. It produces polyester textured yarn (PTY yarn) and unbleached synthetic grey fabric. The company operates from three manufacturing units with 15 texturising machines, 6 warping machines, 700 water jet looms, and 10 folding machines.

It has a current capacity of 2,332.8 lakh meters per year, which will expand by 1,127.52 lakh meters after the launch of Unit 4-a new plant funded by IPO proceeds. Production at Unit 4 is expected to begin in December 2025, potentially boosting future sales.

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