Two fresh mainboard IPOs are entering Dalal Street this week. Both these companies come from vastly different sectors. Belrise Industries is a Pune-based auto parts veteran, while Borana Weaves is a young Surat-based textile manufacturer. With both offerings opening just a day apart, let’s take a look at the GMP, issue price, price band and other key factors to watch for both these issues and find out which one is a better bet.
Belrise Industries Vs Borana Weaves IPO: Opening and listing timelines
Belrise Industries will open its IPO for subscription on May 21, and close on May 23. The allotment of shares is expected to be finalised on May 26, and the stock will make its debut on the BSE and NSE on May 28.
On the other hand, Borana Weaves kicked off its IPO a day earlier, opening for bids on May 20, and set to close on May 22. The share allotment is likely to be completed by May 23, and its listing on the BSE and NSE is tentatively scheduled for May 27.
Belrise Industries Vs Borana Weaves IPO: Issue size and objectives
Belrise Industries is raising a massive Rs 2,150 crore through its IPO, all via fresh issue. The primary goal is to repay over Rs 1,600 crore in debt, with the rest going toward corporate expenses.
Borana Weaves, in contrast, has a much smaller issue size of Rs 144.89 crore, again fully fresh issue. The company aims to use the funds for working capital, expansion, and general business needs.
Belrise Industries Vs Borana Weaves IPO: Price band and investment threshold
For Belrise, the price band is set between the range of Rs 85- Rs 90, and the minimum lot size is 166 shares, meaning a retail investor needs to invest at least Rs 14,940.
On the flip side, Borana Weaves has priced its shares between Rs 205 to Rs 216, and a single lot includes 69 shares, requiring a minimum investment of Rs 14,904 at the upper price band.
Belrise Industries Vs Borana Weaves IPO: Grey market buzz
Belrise Industries in the grey market is trading at a premium of Rs 4.24. This translates to an estimated listing price of Rs 94.25, up 4.72% from the issue’s upper price band of Rs 90 per shares
Borana Weaves, on the other hand, is generating quite a bit of chatter in the grey market, with a premium of Rs 55 per share today, that is its opening day. That puts its expected listing price at around Rs 271, offering a potential 25.46% gain.
However, it is important to note that GMP is not the actual or official listing price as it may fluctuate based on market sentiment.
Belrise Industries Vs Borana Weaves IPO: Key players of the issues
For Belrise Industries IPO, Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets are acting as the book-running lead managers for the issue. The IPO registrar responsibilities have been handed over to Link Intime.
Meanwhile, Borana Weaves has appointed Beeline Capital Advisors as the book-running lead manager. For registrar services, it has chosen Kfin Technologies.
Belrise Industries Vs Borana Weaves IPO: Sectoral details
Belrise Industries has been around since 1996 and is a seasoned player in the auto component space. It supplies essential parts like chassis, suspension systems, and exhausts to major auto brands such as Hero, Bajaj, Royal Enfield, and even Jaguar Land Rover.
Borana Weaves, on the other hand, was set up just five years ago in 2020. It focuses on producing unbleached synthetic grey fabric, a raw material used in everything from ethnic wear to technical textiles.