Borana Weaves files draft papers with SEBI to raise funds via public issue; Check IPO details

Borana Weaves Limited, which specializes in the production of unbleached synthetic grey fabric, has filed its draft red herring prospectus (DRHP) with the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise funds via an upcoming initial public offering (IPO).

Beeline Capital Advisors Private Limited is the Book-Running Lead Manager to the Issue, while KFIN Technologies Limited is the registrar. The Surat-based company said in its statement that the public issue will consist of up to 70,00,000 equity shares with a face value of ₹10 each, all of which will be issued as a fresh issue. 

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The IPO aims to finance the cost of establishing a new manufacturing unit in Surat, Gujarat, to expand its production capabilities and produce grey fabric. The company also aims to secure funding via the IPO for incremental working capital requirements and general corporate purposes.

For the period ended March 31, 2024, the company reported revenue from operations of ₹19,905.56 lakhs, an EBITDA of ₹4,117.31 lakhs, and a net profit of ₹2,358.64 lakhs. For the period ended September 30, the company reported revenue from operations of ₹13,303.48 lakhs, EBITDA of ₹2,794.36 lakhs, and a net profit of ₹1,790.42 lakhs. EBITDA is earnings before interest, taxes, depreciation, and amortization.

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Borana Weaves Company Details 

Borana Weaves is a textile manufacturer headquartered in Surat, Gujarat, that specializes in the production of unbleached synthetic grey fabric. This fabric is a versatile base material frequently used for further processing, including dyeing and printing. 

Due to its adaptability across various styles, grey fabric is essential in fashion, traditional textiles, technical textiles, home décor, and interior design. In addition to grey fabric, our company also manufactures polyester textured yarn, which is produced by heating polyester-oriented yarn, our raw material for grey fabric. 

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Since commencing operations in 2021, the company has expanded to three manufacturing units in Surat, equipped with textile manufacturing technologies, pollution-light machinery, and tools that domestic and global players supply in the synthetic fibre industry, including 15 texturizing machines, six warping machines, 700 water jet looms, and 10 folding machines.

With India witnessing a surge in demand for synthetic textiles driven by affordability, durability, and evolving market trends, the Indian synthetic textile industry is well-positioned to benefit, with growth opportunities in both domestic consumption and exports. The company’s strong foothold in Gujarat, supported by robust customer relationships and streamlined operations, has been instrumental in its continued success.