| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 205 to ₹ 216 | 69 | 20th May, 2025 – 22nd May, 2025 | ₹144.89 Cr |
Borana Weaves Limited IPO
Borana Weaves Limited (BWL), based in Surat, Gujarat, is a textile manufacturer engaged in the production of unbleached synthetic grey fabric and polyester textured yarn (PTY). The grey fabric, serving as a fundamental base for further processing such as dyeing and printing, caters to a broad range of industries including fashion, traditional textiles, technical textiles, home décor, and interior furnishings. PTY, produced through the heat treatment of polyester-oriented yarn (POY), complements the company’s product portfolio. Since commencing operations in 2020, BWL has established three manufacturing units in Surat, integrated with advanced machinery such as texturising machines, warping units, water jet looms, and folding machines. As of December 31, 2024, the company operates 15 texturising machines, 6 warping machines, 700 water jet looms, and 10 folding machines. The company’s manufacturing and processing in its units are carried out using textile manufacturing technologies, pollution-light machinery and tools which are supplied by domestic and global players. As of 9MFY25, grey fabric constituted the majority of revenue at 84.2%, followed by yarn at 14.3% and other products at 1.4%. This marks a notable shift in product mix, as grey fabric revenue has grown from 45.9% in FY22 to 72.2% in FY24, while yarn revenue declined from 50.8% to 26.4% over the same period. Customer concentration in the grey fabric segment was moderate, with the top 1, top 5, and top 10 customers contributing Rs. 177 million (8.3%), Rs. 542 million (25.6%), and Rs. 852 million (40.3%), respectively, in 9MFY25. For PTY Yarn, the top 1, top 5, and top 10 customers accounted for Rs.144 million (6.8%), Rs. 319 million (15.1%), and Rs. 327 million (15.5%), respectively, reflecting a relatively well-distributed customer base. series targets family convenience scooters such as large seats, WhatsApp notification, larger storage of 56L, and voice command through Alexa Skills. The company’s E2WS are complemented by a product ecosystem comprising fast-charging infrastructure (Ather Grid), accessories, and the Atherstack with connected features, such as Over-The-Air (“OTA”) updates. Currently, it has 69 features as of 31st Dec 2024. According to the CRISIL Report, the company is the third and fourth largest player by volume of E2W sales in FY24 and the 9MFY25, respectively, with sales of 109,577
and 107,983 E2Ws in FY24 and the 9MFY25, respectively. The company’s Hosur Factory has an annual capacity of 420,000 E2Ws and 379,800 battery packs, and it is expanding with a new facility in Maharashtra to boost capacity to 1.42 million units. Operating an asset-light distribution model, Ather had 280 experience centres and 238 service centres across India, Nepal, and Sri Lanka by the end of 2024. It has also built strong intellectual property, with over 500 registered and more than 400 pending IPR filings globally
Objective of the Borana Weaves Limited IPO
The company proposes to utilize net proceeds towards funding the following objects:
- Proposing to finance the cost of establishing a new manufacturing unit to expand its production capabilities to produce grey fabric at Surat;
- Funding incremental working capital requirements;
- General corporate purposes.
Rationale To Borana Weaves Limited IPO
Strategic expansion in core segment to drive growth supported by integrated units and regional strength
The company presents a compelling investment opportunity as a specialised manufacturer of unbleached synthetic grey fabric, a critical input used across fashion, technical textiles, and home decor sectors. Headquartered in Surat, Gujarat – India’s largest textile manufacturing hub – the company is strategically positioned to meet the growing domestic demand for synthetic grey fabric, supported by an efficient supply chain and strong regional presence. To further capitalise on sector growth, the company is setting up a fourth manufacturing unit in Hojiwala Industrial Estate, Surat, which will be equipped with additional water jet looms, texturising, warping, and folding machines. This capacity expansion is expected to enhance scale and improve margins through better cost absorption and increased output. The company’s supplier and customer networks are deeply embedded in South Gujarat, contributing to operational efficiency and reliability of input procurement. In FY24, 99.89% of revenue was derived from Gujarat, highlighting strong local market dominance, though the company has started expanding sales to other key states like Rajasthan, West Bengal, and Uttar Pradesh. With a combination of robust infrastructure, operational efficiency, rising customer traction, and a forward-looking capacity expansion strategy, the company is well-positioned to strengthen its market position and deliver sustainable growth in the synthetic textile segment. segment. Leveraging its ability to pioneer new technology, Ather commands a premium pricing position, supported by its reputation for high-quality products, strong performance, and exceptional user experience. The launch of the Ather Rizta offers a more affordable option, aiming to capture a broader customer base while maintaining its premium image. To support its leadership position, the
brand remains committed to R&D, with nearly half its workforce dedicated to research and development, driving continual technological advancements. Further, addressing the major challenge in adopting EV, i.e. charging infrastructure, the company has created a fast-charging network with Ather Grid, making it convenient for customers to charge their vehicles across major cities. With consistent growth in sales, a strong consumer base, and a commitment to R&D, Ather is well- positioned to continue leading India’s transition to electric mobility.
Strong financial performance with expanding margins and a capital-efficient growth trajectory
BWL has demonstrated a robust financial trajectory, underpinned by a strong topline CAGR of 116.8% over FY22-FY24. The company has consistently enhanced its operational efficiency, reflected in EBITDA margin expansion from 12.2% in FY22 to 20.7% in FY24, alongside an improvement in net profit margin from 4.2% to 11.8% during the same period. This margin expansion has been supported by effective cost control and operating leverage. Notably, BWL has also improved its cash flow quality, with the CFO/Net Profit ratio rising from -4.6 in FY22 to 0.9 in FY24, indicating a solid trend in earnings conversion to cash. With FY25 performance (9MFY25) already surpassing previous fiscal benchmarks, the outlook remains promising. Additionally, the company has delivered superior returns to shareholders, with ROE and ROCE at 49.5% and 24.1%, respectively, in FY24, reinforcing its strong capital efficiency and profitability profile. Another key highlight is the negative free cash flow across the past three fiscal years, despite improving cash conversion metrics. This indicates significant capital expenditure, likely aimed at supporting growth initiatives, but also suggests limited liquidity in the short term. This perspective is further reinforced by the company’s issue objectives, which include raising capital for capex and working capital requirements. lower than comparable domestic and international peers, highlights its efficient use of resources. Additionally, its favourable working capital days—48 and 46 days in FY 2024 and the nine months ended December 31, 2024—demonstrate strong financial prudence. Ather’s focus on scalability is evident in its transition from a small factory to the expansive Hosur Factory, which significantly increased its production capacity. The company also follows an asset-light distribution strategy, relying on retail partners to operate experience and service centres, minimizing capital investment and benefiting from local sales expertise. This approach enables rapid expansion without the high costs of brick-and-mortar infrastructure, offering operational flexibility and cost efficiency. Ather’s strategic focus on outsourcing, capital optimization, and scalable growth positions it for longterm success in the evolving electric vehicle market, making it an appealing choice for investors.
Valuation of Borana Weaves Limited IPO
Borana Weaves Limited (BWL), which commenced its operations in 2020, has made significant strides in positioning itself as a strong regional player, with healthy customer relationships and innovative product offerings. BWL appears well-positioned for sustained growth, backed by three strategic levers: capacity expansion, product diversification, and a favourable industry backdrop. The company is augmenting its installed capacity through a new Surat facility, enhancing its ability to serve rising synthetic fabric demand. With India’s polyester demand projected to grow from 4 MT to 6.7 MT by 2025 and synthetic textiles gaining traction across fashion, technical, and industrial applications, BWL is strategically placed to capitalise on this trend. It is also leveraging existing investments in water jet looms to diversify into high-margin technical textiles. Complementing these growth initiatives, BWL has delivered stellar financial performance, with a topline CAGR of 116.8% over FY22–FY24, EBITDA margin expansion from 12.2% to 20.7%, and a marked improvement in cash conversion. High capital efficiency (ROE of 49.5% in FY24) and continued investments funded by IPO proceeds further reinforce its medium-term growth visibility. While heavy capex may constrain free cash flows in the short term, it reflects a forward-looking strategy to capture scalable demand, reinforcing a positive outlook. The company is valued at a PE ratio of 18.3x on the upper price band based on FY24 earnings. Given its strong financial trajectory, strategic capacity expansion, and increasing presence in high-growth segments like synthetic and technical textiles, BWL is well-positioned to capture structural tailwinds in the industry. We thus recommend a ‘SUBSCRIBE’ rating for investors with a medium to long-term investment horizon.
1. What is the Borana Weaves Limited IPO?
Borana Weaves ltd IPO is a book built issue of Rs 144.89 crores. The issue is entirely a fresh issue of 144.89 crore shares. Borana Weaves IPO bidding opened for subscription on May 20, 2025 and will close on May 22, 2025. The allotment for the Borana Weaves ltd IPO is expected to be finalized on Friday, May 23, 2025. Borana Weaves IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, May 27, 2025.
How to apply for the Borana Weaves Limited IPO through StoxBox?
To apply for the Borana Weaves Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Borana Weaves Limited IPO open?
Borana Weaves Limited IPO is opening on 20th May 2025.
What is the lot size of the Borana Weaves Limited IPO?
The Lot Size of Borana Weaves Limited IPO is 69 equity shares.
When is the Borana Weaves Limited IPO allotment date?
The allotment Date for Ather Energy Limited IPO is 23rd May 2025.
When is the Borana Weaves Limited IPO listing date?
The listing Date for Borana Weaves Energy IPO is 27th May 2025.
What are the risks associated with investing in the Borana Weaves Limited IPO?
In the Retail segment the minimum investment required is Rs. 14,904.
When will the Borana Weaves Limited IPO shares be credited to my Demat account?
Allotment date is-May 23rd 2025
What are the risks associated with investing in the Borana Weaves Limited IPO?
- High regional concentration and absence of long-term contracts pose revenue risk.
- Geographical concentration of operations and supply chain elevates location-specific risks.
- BWL’s limited track record since commencing operations in 2020 raises uncertainty around the sustainability of its current growth momentum and its ability to manage long-term business cycles and risks.
When will the Borana Weaves Limited IPO shares be credited to my Demat account?
The Ather Energy Limited IPO be credited to the account on allotment date which is 26th May 2025. Login to your account now – https://campaign.StoxBox.in/redirect.html
