IPO Overview
Founded in February 2022, Sonaselection India Limited is an integrated fabric manufacturing and processing company headquartered in Bhilwara, Rajasthan — a region widely known as India’s textile city, offering a strong textile ecosystem, skilled workforce, and established supply chains. The company has one manufacturing facility in Bhilwara, Rajasthan, with an installed processing capacity of 82.44 million meters per annum. It operates dual revenue streams — own manufacturing and third-party job-work processing — which enhance capacity utilisation and revenue stability. The company manufactures a wide range of fabrics including 100% cotton, cotton blends, cotton lycra, and polyester blends. It also undertakes fabric processing for various materials such as cotton, polyester-viscose, blended fabrics, and polyester on a job-work basis, where customers supply greige fabric and the company handles processing based on specific requirements related to colour, finish, and quality standards.
The ₹141.57 crore Sonaselection India IPO will open for subscription on September 17, 2026, and close on September 21, 2026. The company has fixed the IPO price band at ₹94 to ₹99 per share. The issue is entirely a fresh issue, with no Offer for Sale (OFS) component. The IPO is scheduled to list on both NSE and BSE, with a tentative listing date of September 24, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 16 September 2026 |
| IPO Open Date | 17 September 2026 |
| IPO Close Date | 21 September 2026 |
| Allotment Date | 22 September 2026 (Expected) |
| Refund Initiation | 23 September 2026 |
| Credit to Demat | 23 September 2026 |
| Listing Date | 24 September 2026 (Tentative) |
| Price Band | ₹94 – ₹99 per share |
| Face Value | ₹10 per share |
| Lot Size | 150 shares |
| Minimum Investment (Retail) | ₹14,850 (1 lot = 150 shares) |
| Issue Size | ₹141.57 crore |
| Fresh Issue | 1,43,00,000 shares (₹141.57 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire ₹141.57 crore book is a fresh issue. No seller stock is coming off promoter books. Pre-issue promoter holding stands at 94.76%, which will fall to approximately 71% post-issue on 5.68 crore shares.
Objects of the Issue (Fund Utilization)
The proceeds of the IPO — ₹80 crore — will be used for debt repayment, ₹47.55 crore for purchase of plant and machinery at the company’s manufacturing facility, and the remainder for general corporate purposes.
- Repayment / prepayment of certain bank borrowings — ₹80.00 crore
- Capital expenditure for purchase of plant and machinery — ₹47.55 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Choice Capital Advisors Private Limited
- Registrar to the Issue: KFin Technologies Limited
Promoters & Management
The promoters of Sonaselection India are Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari, and Sona Polyspin Private Limited.
Key Management:
- CFO: Ramesh Chandra Vyas
- Company Secretary & Compliance Officer: Harish Sharma
Company Details
Sonaselection India Limited is an integrated fabric manufacturing and processing company engaged in producing value-added cotton, blended, and stretch fabrics, as well as undertaking bleaching, dyeing, and finishing operations. The company is implementing a forward integration strategy by expanding into the Readymade Garment (RMG) segment through its wholly-owned subsidiary, Sionnah Enterprises Private Limited.
Sectors Served:
- Fashion & Apparel Houses
- Domestic Textile Retailers
- Industrial Fabric Buyers
- Export-oriented garment manufacturers
Key Products & Services:
- 100% Cotton Fabrics
- Cotton-Lycra & Stretch Fabrics
- Polyester & Blended Fabrics
- Fabric Processing (Dyeing, Bleaching, Finishing) on Job-Work Basis
Key Capabilities:
Backed by advanced processing capabilities, stringent quality systems, and global certifications such as GOTS, GRS, and OEKO-TEX, the company is strategically positioned to capitalise on India’s growing textile market and increasing global sourcing shift.
Manufacturing Facility:
- Location: 18th KM Stone, Chittorgarh Road, Hamirgarh, Bhilwara — 311025, Rajasthan
- Facility Area: ~49,540 sq. metres
- Installed Capacity: 82.44 million metres per annum
- As of July 31, 2026, the company had 979 employees across production, plant maintenance, dispatch and supply chain, quality assurance, safety and security, accounts and finance, sales and marketing, and other support functions.
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) | PAT Margin |
| FY23 | ₹94.11 | ₹2.51 | 17.56% |
| FY24 | ₹121.31 | ₹13.10 | 16.92% |
| FY25 | ₹316.47 | ₹18.56 | 8.97% |
| FY26 (Full Year) | ₹517.60 | ₹34.02 | 6.58% |
Key Financial Metrics
FY2026 income increased 64% to ₹517.60 crore, while PAT advanced 83% to ₹34.02 crore. ROE stood at 39.05%, EBITDA margin at 16.40%, and PAT margin at 6.58%. The post-issue P/E of 16.53 times appears reasonable. However, borrowings reached ₹258.24 crore with a debt-to-equity ratio of 2.48.
- Revenue CAGR of ~83% from FY23 to FY25 — strong top-line expansion
- Post-issue P/E: ~16.53x based on FY26 earnings
- Pre-issue promoter stake: 94.76%; Post-issue: ~71%
Company Strengths
- Strategically located manufacturing facility in Bhilwara, Rajasthan’s textile cluster, with an integrated business model combining manufacturing and job work for operational flexibility.
- Explosive revenue growth — income jumped 161% YoY in FY25 and a further 64% in FY26, demonstrating strong execution capability
- Modern plant equipped with advanced machinery and in-house quality assurance lab; entry into readymade garments (RMG) via a subsidiary for forward integration.
- Global certifications including GOTS, GRS, and OEKO-TEX — positioning the company to serve sustainability-conscious domestic and export buyers
- Entire IPO is a fresh issue — all funds directed into the business for debt reduction and capacity expansion, with no promoter exit
- Strong, long-standing customer relationships with high retention rates and experienced promoters with deep domain knowledge in fabric manufacturing.
Key Risks & Challenges
- PAT showed inconsistency — FY25 net profit fell to ₹28.13 crore despite higher revenue, due to an extraordinary item of ₹16.97 crore. The 9M FY26 bumper profit of ₹38.69 crore raises questions over its sustainability going forward.
- Overall borrowings of ₹242.57 crore as of December 31, 2025, raise concern. High debt-to-equity ratio of ~2.48 means the company remains heavily leveraged even after IPO proceeds are used for repayment.
- Very young company — incorporated only in February 2022, with a track record of just ~4 years, making it difficult to assess long-term performance consistency.
- Single manufacturing facility in Hamirgarh, Bhilwara — concentration risk in both geography and operations.
- PAT margin in FY25 was just 5.31% on a 161% revenue jump — indicating thin profitability relative to revenue scale, making earnings vulnerable if revenue growth moderates.
- Capital-intensive textile sector with exposure to raw material price volatility (cotton, polyester) and dependence on domestic demand cycles.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
