Textile manufacturer Borana Weaves Ltd has fixed the price band for its upcoming initial public offering (IPO) at Rs 205 to Rs 216 per share. The IPO will open for public subscription on May 20 and close on May 22. Anchor bidding will take place a day earlier, on May 19.
The IPO is a fresh issue of 67.08 lakh equity shares. At the upper end of the price band, the total size of the IPO will be Rs 144.89 crore. Out of this, Rs 71.35 crore will be used to set up a new manufacturing plant in Gujarat to increase its grey fabric production capacity.
The company currently operates three manufacturing facilities in Gujarat, having an overall capacity to produce 233.28 million meters per annum. The company manufactures unbleached synthetic gray fabric and polyester textured yarn, which are used extensively for applications like fashion, traditional wear, home furnishing, and technical textiles.
Another Rs 26.5 crore from IPO proceeds will be utilized for financing the working capital requirements of the company. The shares will be listed on stock exchanges on or after May 27, and allotment will be completed on or before May 23, while refunds will be commenced on or after May 26.
Financially, Borana Weaves registered robust growth. For the period from January to December 2024, the company’s top line was Rs 211.61 crore and net was Rs 29.31 crore. Revenue for the entire FY 2023-24 increased to Rs 199.06 crore from Rs 135.40 crore in FY23. Net income increased to Rs 23.59 crore from Rs 16.30 crore during FY23.
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Source: Moneycontrol.
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