As the Indian IPO market heats up in May 2025, two companies have really caught the eye of both retail and institutional investors — Borana Weaves and Leela Hotels. Both have rolled out their Initial Public Offerings (IPOs) in a vibrant capital market, but they offer quite different investment opportunities.
Let’s dive into each offering, looking at their GMP (Grey Market Premium), subscription status, fundamentals, and whether they’re worth your investment.
Borana Weaves IPO: Strong Retail Buzz, Low Institutional Backing
– Status: Subscription closed
– Price Band: ₹60 per share
– Lot Size:2,000 shares
– Issue Size:₹48.56 crore
– GMP (as of May 22): ₹35–₹40
– Expected Listing Gain: ~60%–65%
Subscription Breakdown (Day 3)
– Retail: Oversubscribed 94x
– NII (High Net-worth Individuals): Subscribed 134x
– QIB (Qualified Institutional Buyers): Low demand
Borana Weaves, a textile manufacturer from Gujarat, saw its IPO oversubscribed by an impressive 64 times overall on Day 3, mainly driven by retail and NII investors, according to Moneycontrol. However, the tepid response from QIBs has raised some eyebrows about the stock’s long-term viability.
The Grey Market Premium (GMP) indicates potential listing gains between ₹35 and ₹40, which is quite promising compared to the ₹60 issue price. Analysts at Business Today note that while the company is showing solid top-line growth, margin pressures and a lack of institutional interest could limit its long-term potential.
Verdict:
– Short-Term:Good for listing gains
– Long-Term: Risky; keep an eye on post-listing performance before jumping in
Leela Hotels IPO: A Luxurious Entry Backed by Hospitality Legacy**
– IPO Dates: May 26–28
– Price Band: ₹133–₹139 per share
– Lot Size:100 shares
– Issue Size: ₹800 crore
– GMP (as of May 22): ₹25–₹30
– Expected Listing Gain: ~20%
With a strong legacy in Indian hospitality, Leela Hotels’ IPO is set to launch on May
According to Groww and ET Now, the company is aiming to raise ₹800 crore to expand its portfolio, renovate properties, and reduce its debt.
The company’s GMP is currently around ₹25–₹30, which indicates a positive outlook, though it doesn’t suggest excessive speculative interest. Financially, the company appears stable, showing consistent revenue growth since the pandemic, along with rising average room rates (ARR) and occupancy rates.
In contrast to Borana Weaves, Leela Hotels is anticipated to attract strong interest from Qualified Institutional Buyers (QIBs), particularly from domestic mutual funds and Foreign Institutional Investors (FIIs) who tend to favor well-established businesses with solid assets.
Verdict:
Short-Term: Moderate listing gains are likely
Long-Term: Looks promising if the tourism and hospitality sectors continue to grow
Key Comparison: Borana Weaves vs. Leela Hotels
| Metric | Borana Weaves | Leela Hotels |
|---|---|---|
| Sector | Textile Manufacturing | Hospitality |
| Issue Size | ₹48.56 crore | ₹800 crore |
| GMP (as of May 22) | ₹35–₹40 | ₹25–₹30 |
| Subscription Trend | High retail/NII; Low QIB | Anticipated broad interest |
| Listing Gains Potential | High (~60%) | Moderate (~20%) |
| Risk Profile | High (small-cap) | Medium (brand-backed) |
| Ideal For | Listing gain seekers | Long-term conservative investors |
IPO Strategy Tips for Investors
Be Cautious with High GMPs: While high GMPs, like those seen with Borana Weaves, can be enticing, they often don’t last long. Make sure you have a solid exit strategy in place.
- Pay Attention to QIB Interest: A strong showing from Qualified Institutional Buyers (QIBs) is a good sign of institutional confidence. This can often be a more reliable indicator of long-term success than GMP alone.
- Diversify Your Applications: If your budget allows, consider applying to both IPOs. One might give you quick listing gains (like Borana Weaves), while the other could present a promising growth opportunity (such as Leela Hotels).
- Keep an Eye on Lock-in Periods: For High Net Worth Individuals (HNIs) and anchor investors, the selling pressure after the IPO can be significant—so it’s wise to track these important dates.
Conclusion
The IPO landscape is buzzing with potential in 2025. Borana Weaves serves as a classic example of a high-GMP, short-term gamble, while Leela Hotels offers a more established, brand-focused investment for those ready to commit for the long haul.
As always, remember to do your own research, read the red herring prospectus, and consult with a financial advisor before making any investment decisions.
