Mumbai, May 2025 — Borana Weaves Limited, a Surat-based synthetic textile manufacturer, has filed its Draft Red Herring Prospectus (DRHP) dated November 16, 2024 with SEBI for an initial public offering (IPO) comprising a fresh issue of up to 70,00,000 equity shares. The company intends to raise funds to expand its manufacturing footprint and meet working capital needs.
The issue is being made under Regulation 6(2) of the SEBI ICDR Regulations as Borana Weaves does not meet the profitability criteria under Regulation 6(1)(a). The equity shares are proposed to be listed on both NSE and BSE.
Issue Details at a Glance
| Particulars | Details |
|---|---|
| Type of Issue | 100% Fresh Issue |
| Total Shares Offered | Up to 70,00,000 equity shares |
| Face Value | ₹10 per share |
| Price Band | To be announced |
| Listing Exchanges | NSE, BSE |
| Book Running Lead Manager | Beeline Capital Advisors Pvt. Ltd. |
| Registrar to the Issue | KFIN Technologies Ltd. |
Use of IPO Proceeds
According to the DRHP (page 26), Borana Weaves plans to use the net proceeds for:| Utilization Head | Estimated Amount (₹ in lakhs) |
|---|---|
| New manufacturing unit in Surat (Unit 4) | 7,134.77 |
| Incremental working capital requirements | 2,650.00 |
| General corporate purposes | [To be finalized] |
Company Overview
Borana Weaves Limited specializes in the manufacture of unbleached synthetic grey fabric, which is widely used as a base in fashion, technical textiles, and home décor. It also produces polyester-textured yarn (PTY) using polyester-oriented yarn (POY) as a raw material.Since its incorporation in 2020, the company has rapidly scaled operations with three existing manufacturing units and one more (Unit 4) in the pipeline.
Key Financial Highlights
| Financial Metric | H1 FY25 | FY24 | FY23 | FY22 |
|---|---|---|---|---|
| Revenue from Operations (₹ in lakhs) | [Not shown] | [Not shown] | [Not shown] | [Not shown] |
| EBITDA (₹ in lakhs) | 2,794.36 | 4,117.31 | 2,606.41 | 517.46 |
| EBITDA Margin (%) | 21.00% | 20.68% | 19.25% | 12.22% |
| Net Profit (₹ in lakhs) | 1,790.42 | 2,358.64 | 1,630.09 | 179.86 |
| PAT Margin (%) | 13.46% | 11.85% | 12.04% | 4.25% |
| Return on Net Worth (%) | 27.49%* | 49.77% | 67.61% | 99.45% |
| EPS (₹, basic & diluted) | 8.98* | 11.83 | 10.88 | 3.59 |
Source: DRHP, page 27
Promoters and Leadership
The company is promoted by Mangilal Ambalal Borana, Ankur Mangilal Borana, Rajkumar Mangilal Borana, and their respective HUFs, alongside Borana Filaments Pvt. Ltd. Key managerial personnel include:- Mangilal Ambalal Borana – Chairman & Managing Director
- Ankur Mangilal Borana – CEO & Executive Director
- Rajkumar Mangilal Borana – CFO
Industry Outlook
According to the D&B Report cited in the DRHP, India’s textile exports stood at over USD 44 billion in FY22 and are projected to reach USD 65 billion by FY26. Rising global demand and policy support, including the PLI scheme, are key growth drivers.Legal & Compliance Snapshot
- Outstanding Litigation: Only one pending criminal matter involving a director; no significant tax, regulatory, or SEBI-related proceedings.
- Contingent Liabilities: ₹982.36 lakh in bank guarantees issued as of September 30, 2024.
- Related Party Transactions: Major sales and purchases occurred with group companies such as Borana Industries LLP and RB Industries.
Conclusion
Borana Weaves’ IPO aims to fuel capacity expansion and working capital in a fast-growing textile sector. Backed by healthy margins, strong promoter holding, and favorable market dynamics, the company is a focused player in synthetic grey fabric and PTY yarn manufacturing.Note: The Red Herring Prospectus (RHP) will update specific figures, such as issue price, lot size, valuation, and final financials, closer to the listing date.
