Borana Weaves Limited

Borana Weaves Limited is a textile manufacturer based in Surat, specializing in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries, including fashion, traditional textiles, technical textiles, home décor, and interior design. In addition to grey fabric, the Company also manufactures polyester textured yarn, which is produced by heating polyester oriented yarn, the raw material used in the production of grey fabric. The Company commenced its operations in 2020, and the production from the first unit, Unit 1 located at Surat, Gujarat, was subsequently started in 2021. As on date, the Company operates three manufacturing units in Surat, Gujarat, equipped with textile manufacturing technologies for, inter alia, texturizing, warping, water jet looms, and textile folding. Most of the manufacturing and processing in the units are carried out using textile manufacturing technologies, pollution light machinery and tools which are supplied by domestic and global players in the synthetic fibre industry. As of December 31, 2024, the Company had a total of 15 texturizing machines, 6 warping machines, 700 water jet looms and 10 folding machines active at its three units. Company's majority customer base (comprising of wholesalers) in Gujarat. During the Fiscal Years 2024, 2023 and 2022, and nine months period ended December 31, 2024, they catered to 170, 177, 65 and 204 customers, respectively, and the revenue from sales stood at Rs 19,905.56 lakhs, Rs 13,539.90 lakhs, Rs 4,233.40 lakhs and Rs 21,161.52 lakhs, respectively, translating to average compounded annual growth rate of 116.84% for the last three Financial Years.  As per financial performance, Borana Weaves Limited has posted total income / net profits of Rs 42.36 Cr / Rs 1.80 Cr (FY22), Rs 135.53 Cr / 16.30 Cr (FY23), Rs 199.60 Cr / Rs 23.59 Cr (FY24) and Rs 215.71 Cr / 29.31 Cr (Q3 FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 10.14 and average RoNW of 64% for last three fiscals. Issue is priced at a P/BV of 5.63 as per NAV of Rs 38.4/- as on 31.12.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on equity post issue, then asking price is at a P/E of around 35.31, 24.40 and 14.73 respectively. As per RHP, there is no listed peers. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this IPO, and have handled only one Main Board IPO and 58 SME IPOs in last three fiscals.  ( As on 18.05.25 ) As per financials, Borana Weaves Limited has shown good growth, RoNW is 49.77% and P/E is 35.31, 24.40 and 14.73 respectively as per FY23, FY24 and annualised FY25 earnings. So issue looks fully priced. Company is engaged in the business of producing and marketing of unbleached synthetic grey fabrics for B2B segment, which is highly competitive and fragmented business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mangilal Ambalal Boran
• 2 Ankur Mangilal Borana
• 3 Rajkumar Mangilal Borana
• 4 Dhwani Ankur Borana
• 5 Mangilal Ambalal Borana HUF
• 6 Ankur Mangilal Borana HUF
• 7 Rajkumar Mangilal Borana HUF
• 8 Borana Filaments Private Limited