Borana Weaves IPO, priced at ₹216 per share, received strong response with 10.66 times subscription on Day 2. The company plans to raise ₹144.89 crore via fresh equity shares. The IPO closes on May 22, with listing expected on May 27. Grey Market Premium (GMP) stands at ₹56 per share, indicating healthy demand.
Borana Weaves Limited, a manufacturer of unbleached synthetic grey fabric and polyester textured yarn, continued to receive robust investor interest on the second day of its initial public offering (IPO). Priced at ₹216 per share, the IPO aims to raise ₹144.89 crore entirely through a fresh issue of 67.08 lakh equity shares.
As of the morning trading hours on May 21, the IPO was subscribed 10.66 times, showing a significant increase from the 8.53 times subscription recorded on the first day. Investors submitted bids for approximately 3.93 crore equity shares, against the offer size of 36.89 lakh shares.
Breaking down the subscription details, the retail category showed an impressive 30.53 times subscription, while Qualified Institutional Buyers (QIBs) subscribed 1.55 times and Non-Institutional Investors (NIIs) 15.61 times.
Borana Weaves IPO is scheduled to remain open until May 22, with the allotment of shares expected on May 23. The shares will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), with the listing date anticipated to be May 27.
In the grey market, Borana Weaves shares are trading at a premium of ₹56 per share, translating to a grey market price of ₹272, which is about 25.93% higher than the IPO price band.
The company has received positive feedback from market analysts who highlight its niche positioning and integrated manufacturing capabilities. However, some risks such as regional concentration and raw material price volatility remain.
The IPO lot size is set at 69 shares, requiring a minimum retail investment of ₹14,145. Beeline Capital Advisors Pvt Ltd is managing the IPO, with Kfin Technologies appointed as the registrar.
Investors looking to participate in the Borana Weaves IPO should consider the strong subscription numbers and the current grey market premium while making their investment decision.
