Borana Weaves Lists at 12.5% Premium, Hits Upper Circuit

Post by : Layla Badr

Borana Weaves, a textile company from Ahmedabad, started trading on the stock market on May 27. The company’s shares were listed at ₹243 each on both BSE and NSE. This was 12.5% higher than the IPO price of ₹216.

Before the official listing, Borana Weaves' shares were being sold in the grey market at a 19.91% premium. So, while the listing was strong, it was slightly lower than the grey market expected.

Right after listing, the stock gained another 5% and hit the upper circuit at ₹255.15 per share. That means the share price could not rise further for the day. This price was more than 18% higher than the IPO price, showing strong interest from investors.

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The company started trading with a market value of around ₹670 crore.

IPO Details and Subscription

The IPO of Borana Weaves was worth ₹145 crore. It got a huge response from investors between May 20 and May 22. It was subscribed 149 times in total.

Non-institutional investors (like wealthy individuals) led the way by subscribing 237 times. Retail investors (like small individual investors) also showed strong interest, subscribing over 200 times. Even big institutions (QIBs) subscribed 87 times.

The IPO had only new shares – 67.08 lakh shares were offered. The price range was ₹205 to ₹216. Investors had to buy at least 69 shares, which cost ₹14,904. The allotment of shares was announced on May 23.

What Should Investors Do Now?

Market experts had expected Borana Weaves to perform well on its first day—and it did. Gaurav Garg from Lemonn Markets said the strong listing and quick move to the upper circuit show investors believe in the company’s business.

He said short-term investors (those who just wanted quick profits) could think about selling their shares now. But long-term investors should wait and watch how the company performs in the coming months, especially how well it handles its business plans.

Mahesh Ojha from Hensex Securities added that if the stock keeps trading steadily with good volume, it might be smart to sell part of the shares and keep the rest. He believes Borana Weaves has a strong business model and fair valuation at a price-to-earnings (P/E) ratio of 24. He also said that if the company keeps growing and managing well, it could give good returns over time.

About Borana Weaves

Borana Weaves makes and sells synthetic grey fabric that is not bleached. It mostly sells its fabric to other businesses (B2B). The company wants to grow its presence in different regions so it can serve customers faster and better.

Industry Outlook

Narendra Solanki from Anand Rathi said India’s synthetic textile industry is expected to grow. He mentioned that the global market for man-made fibers is likely to grow at 3.7% by 2025. That means companies like Borana could get good business in both India and other countries.

Solanki also pointed out that moving to water jet looms—modern weaving machines—can help Borana improve its profits in the long run.

He suggested that investors could sell some shares now and hold the rest to benefit from the company’s growth in the future.

Borana Weaves had a good start in the stock market. The share price went up strongly on day one. Investors who bought during the IPO have already made good returns. Experts say it's a good idea to book some profit now and hold the remaining shares if you’re thinking long-term.

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