Borana Weaves IPO Day 1 LIVE Update: Issue Booked 52% So Far; Retail Portion Fully Subscribed. Apply or Not?

India’s vibrant SME IPO market welcomed another entrant today—Borana Weaves Limited, a textile manufacturer based out of Gujarat. The company’s Initial Public Offering (IPO) kicked off on Monday, May 20, 2025, and has already caught the attention of retail investors.

As of Day 1's closing, the overall issue was subscribed 52%, with the retail investor portion fully subscribed within hours of opening. This early response is indicative of the growing enthusiasm around SME IPOs, especially those that tap into India’s enduring textile ecosystem.

Let’s dive deep into the IPO’s structure, fundamentals, key strengths and concerns, expert recommendations, and the big question—should you apply or give it a miss?

IPO Snapshot: Borana Weaves Ltd

About the Company: Who is Borana Weaves?

Borana Weaves is engaged in the manufacturing of grey fabric and semi-finished textile materials. Based in Surat, Gujarat—India’s textile hub—the company caters to wholesalers, garment manufacturers, and traders. It sources raw materials such as cotton yarn and transforms them into value-added woven fabrics through in-house and outsourced facilities.

With over 15 years of operational experience, the company has built long-standing relationships across the textile value chain. Borana Weaves primarily operates in B2B mode and is planning to utilize IPO proceeds for working capital, machinery upgrades, and expansion of its weaving capacity.

Day 1 Subscription Status

By the end of Day 1 (May 20, 2025), the IPO had seen considerable traction:

• Overall Subscription: 52%

• Retail Category: 100% (Fully subscribed)

• Non-Institutional Investors (NII): 17%

• QIB Portion: Not applicable (as SME IPOs typically do not have QIB quota)

The robust retail participation is a strong indicator of market sentiment, especially when many SME IPOs in 2025 have yielded double-digit listing gains.

Key Strengths of Borana Weaves

 1. Textile Sector Tailwinds

India’s textile sector is rebounding amid strong export demand and domestic consumption. The government’s PLI (Production Linked Incentive) schemes and rising demand for homegrown fabrics place Borana Weaves in a favorable position.

 2. Established Presence in Surat

Operating out of Surat gives Borana strategic proximity to raw material suppliers, skilled labor, and logistics networks—reducing overheads and boosting margins.

 3. Revenue Visibility

With established client relationships and a focus on long-term contracts, the company has ensured consistent order inflow. According to its RHP, Borana clocked a revenue of ₹28.6 crore in FY24, with profits of ₹2.1 crore.

 4. Targeted Fund Utilization

The IPO funds are earmarked for increasing production capacity and enhancing automation—moves that can strengthen future scalability and operational efficiency.

Risks and Concerns

 1. Sectoral Volatility

The textile sector is highly cyclical and sensitive to raw material prices, global trade policies, and consumer trends. Any fluctuation in cotton yarn prices or a drop in demand could dent margins.

 2. Small Scale Operations

Being an SME, Borana has limited geographic reach and relies on a concentrated customer base. This makes it vulnerable to client churn or supply chain disruptions.

 3. SME Platform Liquidity

Stocks listed on the SME platform often suffer from lower trading volumes, making exits tricky. Retail investors should consider long-term hold capacity or lower liquidity premiums.

Financial Snapshot

The upward trend in revenue and profit margins suggests operational stability and steady growth. The company’s focus on modernizing its machinery base could further enhance productivity.

Should You Apply? Analyst View

 Retail Focused

Given that the retail portion is already fully subscribed, there’s evident market interest. If you're a risk-tolerant investor seeking listing gains or mid-term holding potential, Borana Weaves might be worth considering.

 Listing Gain Potential

SME IPOs have delivered solid listing gains in 2025 so far. Borana’s pricing at a P/E of around 13x (based on FY24 earnings) seems reasonable compared to peers, indicating potential for listing premium.

 Expert Recommendation

• For Short-Term Investors: Apply with a view of 15–20% listing gains, but keep an eye on grey market premium (GMP) trends over next two days.

• For Long-Term Investors: Wait for listing and post-listing performance. Re-enter after results of capacity expansion reflect in financials.

Final Verdict

The Borana Weaves IPO has made a solid retail debut, which reflects well on market confidence in SME names with operational maturity and industry tailwinds.

Apply If You:

• Can tolerate SME liquidity risks

• Seek modest listing gains

• Believe in India’s textile growth story

Avoid If You:

• Prefer large-cap stability

• Are uncomfortable with SME platform volatility

• Expect instant multi-bagger returns

Important Dates to Remember

Pro Tip for SME IPO Investors

Don’t forget to check your UPI mandate before the issue closes. Failure to approve mandates is one of the top reasons for allotment rejection.

Also, track the Grey Market Premium (GMP) over the next 48 hours—it often gives clues about listing sentiment.

Disclaimer: This article is intended for informational purposes only and should not be considered financial advice. Investing in IPOs involves market risk. Always consult a SEBI-registered financial advisor before making investment decisions.