The Surat-based Borana Weaves is all set to launch its Initial Public Offering (IPO) tomorrow, May 20. The bidding of this mainboard IPO will remain open for three days until May 22. Let’s take look at the key factors to watch out ahead of the opening of the issue and understand what does the GMP indicate.
Borana Weaves IPO: Grey Market Premium (GMP)
Even before the IPO hits the market, as per the latest trends, Borana Weaves shares are trading at a premium of Rs 64 over the issue price, translating to an expected listing price of around Rs 280. This translates to nearly 30% higher than the top end of the IPO price band. However, it is important to note that it is not the actual listing price and may fluctuate based on the market sentiment.
Borana Weaves IPO: Size and price details
Borana Weaves plans to raise Rs 144.89 crore through a fresh issue of 67.08 lakh shares. The IPO is priced between the range of Rs 205 to Rs 216 per share.
For retail investors, the minimum investment is one lot of 69 shares, which costs Rs 14,904 at the upper price. Small non-institutional investors need to apply for at least 966 shares, while large NIIs must bid for 4,692 shares.
Borana Weaves IPO: Where the money will go
The company plans to use the IPO funds to set up a fourth manufacturing unit in Surat to increase its production capacity for synthetic grey fabric. Apart from expanding its infrastructure, the proceeds will also help meet working capital requirements and take care of other corporate expenses.
Borana Weaves IPO: Key dates to remember
The Borana Weaves IPO anchor investor bidding is on May 19. Followed by that the public issue will open on May 20 and closing on May 22. The allotment of shares is expected to be finalised on May 23, with shares expected to be credited to investors demat accounts by May 26.
The stock is likely to be listed on both the exchanges – BSE and NSE on May 27. Beeline Capital Advisors is managing the IPO, while Kfin Technologies is handling the registrar duties.
About the company
The company was founded in 2021 and manufactures unbleached synthetic grey fabric, a raw material used in sectors like fashion, home decor, and industrial textiles. The company runs three production units in Surat equipped with modern machinery such as texturising machines, water-jet looms, and warping systems.