Shares of Borana Weaves made a decent Dalal Street debut on Tuesday as the synthetic grey fabric maker kicked off its maiden trading session at Rs 243 on both BSE and NSE, a premium of 12.50% over its issue price of Rs 216 apiece.
The listing of Borana Weaves has been below the expectations as it had generated considerable interest, reflected in a strong grey market premium (GMP). Ahead of its debut, the company’s GMP stood at Rs 43-45 per share, suggesting potential listing gains of approximately 20-22% for investors. This promising premium initially began at Rs 60 on the first day of the bidding process, indicating high market confidence.
The IPO of Borana Weaves, a Surat-based manufacturer of unbleached synthetic grey fabric, was open for bidding from May 20 to May 22. It had offered shares priced between Rs 205 and Rs 216, with a lot size of 69 shares, it managed to raise a total of Rs 144.89 crore through the IPO, entirely consisting of fresh share sales. The offering included 67,08,000 equity shares aimed at expanding the company’s capital base and funding its growth initiatives.
Borana Weaves’ IPO saw an overwhelming response, being subscribed 148.78 times overall, highlighting significant investor interest. Non-institutional investors (NIIs) led the charge, subscribing 237.42 times, while retail investors were not far behind, booking their portion 200.53 times. Qualified institutional bidders (QIBs) also showed confidence, subscribing 87.21 times.
Incorporated in 2020, Borana Weaves specialises in producing unbleached synthetic grey fabric. This fabric serves as a foundational material for further processing, such as dyeing and printing, and is widely used across various industries, including fashion, traditional textiles, and home decor.
Beeline Capital Advisors acted as the sole book-running lead manager for the Borana Weaves IPO, ensuring efficient management and execution of the offering. Kfin Technologies served as the registrar, managing the application and allocation process efficiently.
Brokerage firms expressed a mostly positive outlook on Borana Weaves, with analysts highlighting the company’s potential in the growing textile sector. The high subscription rate and positive GMP further underline market optimism about the company’s future performance.
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