About Sonaselection India IPO
Sonaselection India Limited, a Bhilwara-based integrated fabric manufacturing and processing company, opens its IPO for public subscription from September 17, 2026, to September 21, 2026.
Sonaselection has a price band of ₹94 to ₹99 per equity share of face value ₹10.
The IPO is a book-built issue of ₹141.57 crore, comprising entirely of a fresh issue of 1,43,00,000 equity shares. There is no offer for sale component.
Business Overview of Sonaselection India
Sonaselection India Limited was incorporated in February 2022 and is an integrated fabric manufacturing and processing company producing value-added textile products.
It transitioned from a job-work-based processing model to a manufacturing-led model after acquiring an established textile processing unit in 2022. They also commissioned a cotton fabric processing plant in July 2024.
Key Highlights of this IPO:
Business Highlights | Key Details |
|---|---|
Incorporated | February 2022 |
Business | Integrated fabric manufacturing and processing — greige to finished fabric |
Product Range | 100% cotton fabric, cotton lycra (stretch), cotton blends and polyester blends |
Processing Services | 100% cotton, cotton blends, polyester-viscose and polyester fabrics on a job-work basis |
Key Processes | Bleaching, dyeing and finishing, with quality control, grading, packing and outbound logistics handled in-house |
Manufacturing Facility | 18th KM Stone, Chittorgarh Road, Hamirgarh, Bhilwara, Rajasthan 311025 |
Site Area | Approximately 49,540 sq. metres |
Installed Capacity | 82.44 million metres per annum |
Location Advantage | Bhilwara, the textile city of Rajasthan |
Capacity Addition | Cotton fabric processing plant commissioned in July 2024 |
Subsidiary | Sionnah Enterprises Private Limited |
Team Strength | 979 employees as of July 31, 2026 |
Promoters | Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari and Sona Polyspin Pvt. Ltd. |
Sonaselection India: IPO Date, Price, and Other Details
Here are the details of the upcoming Sonaselection India IPO:
Particular | Detail |
|---|---|
Issue Size | ₹141.57 crore (1,43,00,000 shares) |
Offer Type | Book-built issue — fresh capital only |
Fresh Issue | 1,43,00,000 shares (₹141.57 crore) |
Offer for Sale | Nil |
Face Value | ₹10 per equity share |
Price Band | ₹94 to ₹99 per share |
IPO Open Date | September 17, 2026 |
IPO Close Date | September 21, 2026 |
Basis of Allotment | September 22, 2026 |
Refunds | September 23, 2026 |
Credit to Demat Account | September 23, 2026 |
Listing Date | September 24, 2026 |
Lot Size | 150 shares |
Minimum Investment (Retail) | ₹14,850 |
Market Capitalisation (upper band) | ₹562.60 crore |
Book Running Lead Manager | Choice Capital Advisors Pvt. Ltd. |
Registrar | Kfin Technologies Ltd. |
Listing Exchanges | BSE, NSE |
Sonaselection India IPO Market Lot
The Sonaselection India IPO minimum market lot is 150 shares with a ₹14,850 application amount. Retail investors can apply for up to 13 lots with 1,950 shares of ₹1,93,050.
Application | Lot Size | Shares | Amount |
|---|---|---|---|
Retail (Min) | 1 | 150 | ₹14,850 |
Retail (Max) | 13 | 1,950 | ₹1,93,050 |
S-HNI (Min) | 14 | 2,100 | ₹2,07,900 |
S-HNI (Max) | 67 | 10,050 | ₹9,94,950 |
B-HNI (Min) | 68 | 10,200 | ₹10,09,800 |
Sonaselection India IPO Reservation: Who Can Apply?
The Sonaselection India IPO has the following investor category reservation:
Investor Category | Portion |
|---|---|
Qualified Institutional Buyers (QIB) | Not more than 50% of the Issue |
Retail Individual Investors | Not less than 35% of the Net Offer |
Non-Institutional Investors (NII) | Not less than 15% of the Issue Size |
Strengths and Risks of Sonaselection India IPO
Every business has its strengths and risks, and Sonaselection India is no different. Here is a brief business analysis (as per the RHP) below:
Strengths
- Rapid growth: Total income grew more than fourfold from ₹121.31 crore in FY2024 to ₹517.60 crore in FY2026, with profit after tax rising from ₹13.10 crore to ₹34.02 crore.
- Strong return ratios: ROE and RoNW of 39.05% in FY2026, among the highest in the recent textile cohort.
- Integrated production line: Runs greige to finished fabric in-house — bleaching, dyeing and finishing — with an installed capacity of 82.44 million metres per annum.
- Flexible utilisation model: Own manufacturing sits alongside job-work processing, allowing capacity to flex between the two.
- Strategic location: The manufacturing facility is in Bhilwara, Rajasthan's textile city, with access to the regional supply chain.
- Customer retention: Long-standing customer relationships with a high retention rate, as stated in the offer document.
- 100% fresh issue: The entire ₹141.57 crore accrues to the company, with no promoter or investor exit.
Risks
- Debt-to-equity of Sonaselection stands at 2.48, with total borrowings of ₹258.24 crore against net worth of ₹104.16 crore. Borrowings exceed the entire ₹141.57 crore being raised, and the ₹80.00 crore repayment covers only about 31% of the base.
- Borrowings grew alongside the business, from ₹144.60 crore in FY2024 to ₹258.24 crore in FY2026, up 79% over two years.
- Short operating history. Incorporated in February 2022, with three full financial years of accounts and no record across a complete textile cycle.
- Single-facility concentration. All manufacturing runs from one site at Bhilwara, so any disruption there affects the entire business.
- Thin PAT margin of 6.58%, leaving limited absorption capacity if cotton or dye input costs move adversely.
- Debt repayment dominates the objects at ₹80.00 crore of ₹141.57 crore — roughly 57% of the issue services existing borrowings rather than building capacity.
- Customer and job-work dependence. Revenue rests on customer retention and third-party job-work volumes, neither of which is contractually guaranteed.
The complete risk factor set is disclosed in the "Risk Factors" section of the RHP.
IPO Objectives – How Will the Funds Be Used?
The company proposes to utilise the net proceeds of the issue towards:
# | Issue Objects | Est. Amount (₹ crore) |
|---|---|---|
1 | Repayment and/or pre-payment, in full or part, of certain borrowings | 80.00 |
2 | Funding capital expenditure towards purchase of plant and machinery at the existing Manufacturing Facility, Bhilwara | 50.61 |
3 | General corporate purposes | Balance |
Total | 130.61 |
Promoter Shareholding of Sonaselection India
The promoters of Sonaselection India Limited are Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari and Sona Polyspin Private Limited.
Category | Pre-IPO | Post-IPO |
|---|---|---|
Promoter and Promoter Group | 86.21% | 64.52% |
Public | 13.79% | 35.48% |
Total | 100% | 100% |
Because the issue is entirely a fresh issue, the reduction in promoter percentage arises from dilution alone — no promoter is selling shares.
Financial Performance of Sonaselection India (Restated Consolidated, ₹ in crores)
Here's the table outlining the financial performance of Sonaselection India Limited from FY 2024 to FY 2026.
Period Ended | 31 Mar 2026 | 31 Mar 2025 | 31 Mar 2024 |
|---|---|---|---|
Total Income | 517.60 | 316.47 | 121.31 |
EBITDA | 84.77 | 58.12 | 28.49 |
Profit After Tax | 34.02 | 18.56 | 13.10 |
Net Worth | 104.16 | 70.07 | 38.88 |
Reserves and Surplus | 61.63 | 47.10 | 35.78 |
Total Borrowing | 258.24 | 207.40 | 144.60 |
Assets | 474.99 | 374.77 | 203.50 |
Key Performance Indicators of Sonaselection India
Based on the financials available in the RHP, the following key performance metrics of Sonaselection India IPO can be considered.
KPI | Mar 31, 2026 |
|---|---|
Return on Equity (ROE) | 39.05% |
Return on Capital Employed (ROCE) | 19.69% |
Return on Net Worth (RoNW) | 39.05% |
Debt / Equity | 2.48 |
EBITDA Margin | 16.40% |
PAT Margin | 6.58% |
Net Asset Value (NAV) | ₹24.78 |
Price to Book Value | 4.00 |
(Note: Debt repayment takes roughly 57% of the Sonaselection IPO. With the repayment, about 31% of the base is covered, leaving roughly ₹178 crore outstanding.)
Registrar of Sonaselection India IPO
The Registrar of Sonaselection India IPO is Kfin Technologies Ltd.
Phone: 040-79615565
Email: sona.ipo@kfintech.com
Allotment status: https://ipostatus.kfintech.com/
Lead Manager of Sonaselection India IPO
Choice Capital Advisors Pvt. Ltd. is the sole book-running lead manager to the Sonaselection India IPO.
