The initial public offering (IPO) of Borana Weaves, a Surat-based textile manufacturer, is set to close today, May 22. The issue was opened for subscription on May 20.
Let’s take a look at everything you need to know about Borana Weaves IPO from subscription status to grey market premium, allotment, and listing plans – broken down into five simple points.
Borana Weaves IPO: Subscription status soars
As of the third day of bidding, the Borana weaves IPO is oversubscribed by more than 53 times so far. Breaking it down further, retail investors showed the highest interest, with a subscription rate of 119 times, followed by non-institutional investors at 110 times. Qualified institutional buyers (QIBs) also participated actively, with a subscription rate of over 2 times.
Borana Weaves IPO: Grey market premium buzz
The grey market premium (GMP) for Borana Weaves IPO shares stood at Rs 54 at the time of writing, according to InvestorGain. This premium suggests that the shares are expected to list at around Rs 270 each, which is roughly 25% above the upper price band of the IPO of Rs 216. However, it is important to note that GMP is not an official price and is based on market speculation.
Borana Weaves IPO: Issue size and Price band
Borana Weaves has set its IPO price band between Rs 205 and Rs 216 per share. The company is issuing fresh shares worth Rs 144.89 crore. Investors need to bid for a minimum lot size of 69 shares, with additional shares in multiples of the lot size. The entire issue size is Rs 144.89 crore, which will be used by the company for strategic expansion and operational needs.
Borana Weaves IPO: Purpose of the IPO
The funds raised from the IPO will be used primarily to finance a new manufacturing unit in Surat. This new facility will increase the company’s production capacity for grey fabric, a crucial raw material in several textile applications, including fashion and home decor.
In addition to this, the company also plans to use the proceeds to meet its working capital requirements and other general corporate expenses.
Borana Weaves IPO: Allotment and listing
The allotment of Borana Weaves IPO shares is expected to be finalised on May 23. Following allotment, the company’s shares are likely to debut on the BSE and NSE around May 27. Beeline Capital Advisors is managing the book running process, while Kfin Technologies is the registrar handling investor records.