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Unlisted shares of Borana Weaves Ltd are currently trading at Rs 268 apiece in the grey market, which is a 24.07 per cent premium or GMP over the IPO price of Rs 216.
The Borana Weaves IPO will be closed on Thursday, May 22.
Borana Weaves IPO Day 2: The initial public offering of Borana Weaves Ltd has received a strong response from investors so far. Till 10:24 am on the second day of bidding on Wednesday, the Rs 144.89-crore IPO received an 11.66 times subscription garnering bids for 4,30,25,709 shares as against 36,89,457 shares on offer.
The retail and NII participation stood at 33.53 times and 17.28 times, respectively. The qualified institutional buyers (QIB) category has received a 1.57 times subscription on the Day 2 so far.
The IPO received a 8.66 times subscription on the first day of bidding on Tuesday, May 20.
The bidding will be closed on Thursday, May 22.
The price band has been fixed at Rs 216 apiece.
Borana Weaves IPO GMP Today
According to market observers, unlisted shares of Borana Weaves Ltd are currently trading at Rs 268 apiece in the grey market, which is a 24.07 per cent premium or GMP over the IPO price of Rs 216. It indicates a strong listing gains for investors on May 27, the tentative listing date.
The shares will be listed on both BSE and NSE.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Borana Weaves IPO: More Details
The Borana Weaves IPO is entirely a fresh issue of 67.08 lakh shares. Its price has been fixed at Rs 216 per share.
For investors, the minimum lot size for an application is 69. The minimum amount of investment required by retail investors Rs 14,145. The minimum lot size investment for small NII is 14 lots (966 shares) amounting to Rs 2,08,656. For big NII, the minimum is 68 lots (4,692 shares) is Rs 10,13,472.
Proceeds from the IPO will be utilised to finance the cost of setting up a new manufacturing unit to expand capabilities to produce grey fabric at Surat, Gujarat, funding incremental working capital requirements, and for general corporate purposes.
“Over the past few years, we have grown our manufacturing capabilities in the synthetic textile segment. The proceeds from the IPO will support the expansion of our production infrastructure and help us address our working capital needs. This step aligns with our long-term strategy of scaling operations while maintaining focus on product quality and operational efficiency,” Borana Weaves’ Chairman and MD Mangilal Ambalal Borana said.
Incorporated in 2020, Borana Weaves engaged in the production of unbleached synthetic grey fabric. This fabric serves as a fundamental material for further processing, such as dyeing and printing, in various industries, including fashion, traditional textiles, home decor, and interior design.
Beeline Capital Advisors is the book running lead manager and KFin Technologies is the registrar to the issue.
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