After robust IPO subscription, Borana Weaves shares to list today. Here's what GMP suggests

Economic Times

27-05-2025

Considering the upper price band of Rs 216, the stock is expected to list at Rs 256, indicating a potential listing gain of 18.52% for investors.
Borana Weaves is set to debut on the stock exchanges with a strong grey market premium of Rs 40, indicating a potential 18.52% listing gain. The IPO was heavily oversubscribed, reflecting robust investor confidence in the company's expansion plans and synthetic fabric manufacturing business. Proceeds from the IPO will fund a new facility in Surat and support working capital needs.
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The shares of Borana Weaves are set to list on the stock exchanges on Tuesday. Ahead of the debut, there is a decent buzz in the grey market. As per the latest update, the GMP for the company stood at Rs 40.Considering the upper price band of Rs 216, the stock is expected to list at Rs 256, indicating a potential listing gain of 18.52% for investors.While GMPs are unofficial and may not reflect the actual listing price, they often offer a rough indication of market sentiment. All eyes are now on how the stock performs on its debut day, especially after the strong listing of several SME IPOs in recent weeks.The IPO, which closed on May 22, received a bumper response from investors across all categories. It was subscribed 148.77 times overall, with the retail portion subscribed 200.50 times, NII segment 237.41 times, and QIBs 87.21 times. The strong subscription figures reflect robust investor interest in the company's synthetic fabric manufacturing business and its expansion plans.Borana Weaves raised Rs 144.89 crore through a fresh issue of 67.08 lakh shares. The proceeds are being used to set up a new manufacturing facility in Surat, Gujarat, and meet working capital and general corporate needs.Borana Weaves, incorporated in 2020, is a Surat-based textile manufacturer known for its unbleached synthetic grey fabric and polyester textured yarn (PTY yarn). The company caters to a range of industries, including fashion, traditional textiles, home décor, and technical textiles. Its three manufacturing facilities are equipped with advanced machinery, including 700 water jet looms, which contribute to its high production capacity.In terms of financials, the company posted revenue of Rs 215.71 crore and a net profit of Rs 29.31 crore for the nine months ended December 2024. With a healthy return on net worth and strong growth momentum in the synthetic textile sector, Borana Weaves has attracted significant interest ahead of its listing.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)