The week of May 20th, 2025, has become a busy one for stock market enthusiasts with two new IPOs opening for subscription: Borana Weaves Limited and Belrise Industries. Both companies operate in distinct sectors, have varying price bands, and different fundraising objectives, making the decision of which IPO to invest in a complex one.
Borana Weaves IPO Details
Borana Weaves IPO opened on May 20, 2025, with the aim of raising ₹144.89 crore through a fresh issue of 67 lakh equity shares. The IPO is scheduled to remain open for three days, closing on May 22, 2025. The price band is fixed between ₹205 and ₹216 per share. Prior to the public offering, Borana Weaves had already secured ₹65.20 crore from anchor investors.
On the first day of bidding, the IPO was subscribed 8.66 times, demonstrating strong investor interest. Retail investors, in particular, showed significant enthusiasm, subscribing 25.55 times their allotted quota. The Non-Institutional Investor (NII) portion was subscribed 11.64 times, while Qualified Institutional Buyers (QIBs) subscribed 1.54 times. Retail investors can apply for a minimum of one lot, consisting of 69 shares, which translates to a minimum investment of ₹14,145 at the lower price band.
As of May 21, 2025, the Grey Market Premium (GMP) for Borana Weaves was ₹52. This suggests an estimated listing price of ₹268 per share (₹216 + ₹52), potentially offering a listing gain of 24.07%. Allotment is expected to be finalized on May 23, 2025, and the shares are likely to be listed on the BSE and NSE on May 27, 2025.
Brokerage firm Bajaj Broking has recommended that investors subscribe to the Borana Weaves IPO with a long-term perspective, noting the company's consistent growth in income and profits.
Belrise Industries IPO Details
The IPO of Belrise Industries opened on May 21, 2025, seeking to raise ₹2,150 crore through a fresh issue of 23.89 crore shares. The price band is set between ₹85 and ₹90 per share. The IPO will be open for three days, closing on May 23, 2025. Retail investors are required to apply for a minimum of 166 shares, which amounts to a minimum investment of ₹14,110.
Belrise Industries, formerly known as Badve Engineering, was established in 1988. The company is a manufacturer of automotive components, producing a range of safety systems and engineering solutions for various vehicle categories, including two-wheelers, three-wheelers, four-wheelers, commercial vehicles, and agri-vehicles.
As of the morning of May 21, 2025, the GMP for Belrise Industries stood at ₹12. Based on the upper price band of ₹90, the estimated listing price is ₹102, indicating a potential listing gain of 13.33%. The allotment for Belrise Industries is expected to be finalized on May 26, 2025, with shares likely to be listed on the BSE and NSE on May 28, 2025.
Bajaj Broking has also recommended subscribing to the Belrise Industries IPO for the long term, citing the company's strong presence in the auto component sector and its wide range of products.
Key Differences and Considerations
Conclusion
Both IPOs present unique opportunities for investors. Borana Weaves, with its smaller issue size and higher GMP, may offer quicker listing gains. Belrise Industries, with its larger issue size, established presence in the automotive sector, and focus on debt repayment, may appeal to investors seeking long-term stability. Ultimately, the choice depends on individual risk appetite, investment horizon, and sector preferences.
