Surat-Based Borana Weaves Filed DRHP With SEBI To Float IPO

The Surat, Gujarat-based textile manufacturer Borana Weaves Limited has filed the draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India to float an initial public offering (IPO). Borana Weaves IPO is entirely a fresh issue of 70,00,000 equity shares with a face value of ₹10 each. The company will be listed on the BSE and NSE after the completion of the IPO process.

Purpose of Borana Weaves IPO

Borana Weaves has decided to utilise the Net Proceeds from the Issue towards the following:

• Proposing to finance the cost of establishing a new manufacturing Unit to expand its production capabilities to produce grey fabric at Surat, Gujarat, India.
• Funding incremental working capital requirements.
• General Corporate Purposes.

About Borana Weaves Limited

Incorporated in 2020, Borana Weaves Limited is a Surat, Gujarat-based textile manufacturer, that specialises in the manufacturing of unbleached synthetic grey fabric which is often widely used as a base for further processing (including dyeing and printing) in industries such as fashion, traditional textiles, technical textiles, home décor, interior designing. The company is also engaged in the manufacturing of polyester textured yarn, which is produced by heating polyester-oriented yarn (POY Yarn), our raw material used in the production of grey fabric.

The company’s majority of the customer base is in Gujarat, which has contributed to its growth. During the FY 2024, 2023 and 2022, and the 6 months ended September 30, 2024, the company catered to 170, 177, 65 and 146 customers, respectively, and its revenue from sales stood at ₹19,905.56 lakhs, ₹13,539.90 lakhs, ₹4,233.40 lakhs and ₹13,303.48 lakhs, respectively, translating to average compounded annual growth rate of 116.84% for the last 3 Financial Years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.