Sonaselection India IPO Review: Key Details, Company Overview and Financials

The Sonaselection India IPO is a bookbuilding issue of Rs 141.57 crore, comprising an entirely fresh issue of 1,43,00,000 equity shares, with no offer for sale component. The IPO will open for subscription on 17 September 2026 and close on 21 September 2026. The allotment is expected to be finalised on 22 September 2026, while the shares are proposed to list on BSE and NSE around 24 September 2026.

The Sonaselection India IPO price band is set at Rs 94 to Rs 99 per share, with a lot size of 150 shares. Retail investors must apply for a minimum of 150 shares, requiring an investment of Rs 14,850, and can apply for up to 13 lots (1,950 shares, Rs 1,93,050). HNI investors need to apply for at least 14 lots, or 2,100 shares, amounting to Rs 2,07,900.

Choice Capital Advisors Pvt. Ltd. is the book-running lead manager for the Sonaselection India IPO, while KFin Technologies Ltd. is the registrar to the issue.

For detailed information on the company's business, financials, risk factors and the proposed utilisation of proceeds, investors should refer to the Sonaselection India IPO Red Herring Prospectus (RHP) before making an investment decision.

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Company Overview

Incorporated in February 2022, Sonaselection India Limited is an integrated fabric manufacturing and processing company that produces cotton, cotton-lycra, cotton-blend and polyester-blend fabrics for the fashion and apparel industry. The company evolved from being a basic textile vendor to a manufacturer of higher margin, value-added fabrics, and has recently expanded into readymade garments.

Sonaselection India operates a manufacturing and processing facility at Hamirgarh, Bhilwara, Rajasthan, spread across approximately 49,540 square metres, with an installed processing capacity of about 82.44 million metres of fabric annually. Its operations mix in-house bleaching, dyeing and finishing with job-work arrangements, and the facility uses solar power and water recycling. As of 31 October 2025, the company employed 844 people.

Read on for the complete Sonaselection India IPO details, including price band, lot size, listing timeline and the company's financial track record.

IPO Details

Particulars	Details
IPO Date	17 to 21 September 2026
Allotment	Tue, 22 September 2026
Listing Date	Thu, 24 September 2026 (tentative)
Face Value	Rs 10 per share
Price Band	Rs 94 to Rs 99
Lot Size	150 Shares
Issue Type	Bookbuilding IPO
Sale Type	Fresh Issue only (no OFS)
Total Issue Size	1,43,00,000 shares (agg. up to Rs 141.57 Cr)
Fresh Issue	1,43,00,000 shares (agg. up to Rs 141.57 Cr)
Offer for Sale	Nil
Investor Reservation	QIB: 50%; Retail: 35%; NII (HNI): 15% of the net offer
Listing Exchange	BSE, NSE

(Compiled from the RHP/DRHP and market updates)

Industry Context

• India's textile manufacturing hub in Bhilwara, Rajasthan, is a long-established centre for cotton and blended fabric processing, benefiting from concentrated raw material supply chains, skilled labour and established dyeing and finishing infrastructure.
• Value-added, higher margin fabrics such as cotton-lycra and specialty blends are in growing demand from fashion and apparel brands seeking differentiated textures and performance characteristics compared with plain grey fabric.
• Integrated fabric manufacturers that combine in-house bleaching, dyeing and finishing with job-work flexibility can better manage capacity utilisation and respond to shifting demand across fabric categories.
• Sustainability practices such as solar power usage and water recycling are becoming increasingly important for textile manufacturers seeking to serve export-oriented and global fashion brand customers with environmental compliance requirements.
• The broader textile and apparel industry remains sensitive to cotton and synthetic yarn price cycles, and demand can be affected by discretionary consumer spending trends in both domestic and export markets.

Business Strengths

Here are the key strengths investors evaluating the Sonaselection India IPO should weigh:

• Rapid financial growth, with revenue rising from Rs 121.31 crore in FY24 to Rs 517.60 crore in FY26, and profit after tax growing at a reported three-year CAGR of around 172 percent between FY23 and FY25.
• An evolution from basic textile vending to higher margin, value-added fabric manufacturing, including a recent expansion into readymade garments.
• A large, integrated processing facility with solar power and water recycling infrastructure, supporting both scale and sustainability credentials.
• The entire Sonaselection India IPO is a fresh issue, with proceeds earmarked for debt repayment and capacity expansion rather than a promoter exit.

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Business Risks

Alongside these strengths, the Sonaselection India IPO also carries the following business risks:

• The company's debt-to-equity ratio is reported at a fairly high level, and while a portion of the fresh issue will go towards debt repayment, the debt burden remains a factor for investors to monitor.
• Rapid growth from a relatively small base means recent growth rates may not be sustainable at the same pace, and margins have historically been thin for a textile processor.
• The business remains exposed to cotton and synthetic yarn price volatility, and demand for fashion and apparel fabrics can be cyclical.
• As a maiden mainboard issue for the company, and with a single manufacturing location, there is geographic and facility concentration risk.

Financial Performance

The Sonaselection India IPO comes after a period of rapid growth. The company's revenue increased from Rs 316.47 crore in FY25 to Rs 517.60 crore in FY26, around 64 percent, while profit after tax rose from Rs 18.56 crore to Rs 34.02 crore, around 83 percent, over the same period.

Sonaselection India Ltd. – Financials (Rs in Lakh)

Particulars	Fiscal 2026	Fiscal 2025	Fiscal 2024
Revenue from Operations	51,760.00	31,647.00	12,131.00
Profit After Tax (PAT)	3,402.00	1,856.00	Not separately disclosed
PAT Margin (%)	6.57% (computed)	5.86% (computed)	Not separately disclosed
Debt-to-Equity Ratio	2.96	Not separately disclosed	Not separately disclosed

Amounts in Rs Lakh unless stated otherwise, compiled from published Sonaselection India IPO financial disclosures. PAT margin figures are computed from disclosed absolute figures. EBITDA, net worth and total borrowings, along with FY24 profit figures, were not separately available in the sources used for this review; investors should refer to the RHP for the complete restated financial statements.

Key Ratios and Metrics

The table below summarises the key ratios and metrics relevant to the Sonaselection India IPO as of the latest reported period.

These ratios offer a quick snapshot of how the Sonaselection India IPO is priced relative to the company's profitability and net worth.

KPI (Mar 31, 2026)	Value
Debt-to-Equity Ratio	2.96
Pre-Issue EPS (approx.)	Rs 8
Implied P/E (at upper price, approx.)	~12.4x

Objects of the Offer

The company proposes to utilise the net proceeds from the Sonaselection India IPO towards the following objects.

• Repayment or prepayment of certain outstanding borrowings (Rs 80.00 Cr)
• Funding capital expenditure towards purchase of plant and machinery (Rs 47.55 Cr)
• General corporate purposes

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Conclusion

Here is the bottom line on the Sonaselection India IPO.

The Sonaselection India IPO reflects a fast-growing, integrated fabric manufacturer that has moved up the value chain from basic textiles to specialty blends and readymade garments, with the entire issue structured to fund debt reduction and capacity expansion.

However, a fairly high debt-to-equity ratio, the sustainability of very rapid recent growth, cotton and yarn price volatility, and single-facility concentration are factors that could affect the investment case for the Sonaselection India IPO.

Overall, investors weighing the Sonaselection India IPO should evaluate the company's business model, financial performance, industry outlook, competitive positioning, valuation and risk factors in detail, and carefully review the Red Herring Prospectus (RHP) before making an informed investment decision.

Univest does not publish grey market premium figures. Grey market premium is an unofficial and unregulated indicator collected informally outside the stock exchanges. It is not published, verified or endorsed by SEBI, NSE or BSE, can vary widely between trackers, and is not always accurate.

FAQs

What are the Sonaselection India IPO dates, and when will it list?

Ans. The Sonaselection India IPO opens for subscription on 17 September 2026 and closes on 21 September 2026. The allotment is expected to be finalised on 22 September 2026, and the shares are tentatively scheduled to list on both BSE and NSE around 24 September 2026.

What is the price band and minimum investment for the Sonaselection India IPO?

Ans. The price band for the Sonaselection India IPO is set at Rs 94 to Rs 99 per equity share, with a lot size of 150 shares. Retail investors must apply for a minimum of one lot, which costs Rs 14,850 at the upper price band, and can bid for up to 13 lots (1,950 shares, Rs 1,93,050).

What does Sonaselection India Limited actually manufacture?

Ans. Sonaselection India is an integrated fabric manufacturing and processing company that produces cotton, cotton-lycra, cotton-blend and polyester-blend fabrics for fashion and apparel buyers. The company has evolved from being a basic textile vendor into a manufacturer of higher margin, value-added fabrics, and has recently expanded into readymade garments, operating from its facility in Hamirgarh, Bhilwara, Rajasthan with an installed processing capacity of about 82.44 million metres of fabric annually.

Is the Sonaselection India IPO a fresh issue or does it include an offer for sale?

Ans. The entire Rs 141.57 crore Sonaselection India IPO is structured as a fresh issue of 1,43,00,000 equity shares, with no offer for sale component. This means, subject to issue expenses, all of the proceeds raised will flow into the company to fund debt repayment and capacity expansion rather than providing an exit for existing shareholders, though promoter shareholding will still see some dilution as a result of the new shares being issued.

How will Sonaselection India use the proceeds from its fresh issue?

Ans. The largest allocation, Rs 80 crore, is earmarked for repayment or prepayment of certain outstanding borrowings, which should help reduce the company's debt-to-equity ratio of 2.96 and lower future interest costs. A further Rs 47.55 crore is set aside for capital expenditure towards the purchase of plant and machinery, supporting capacity expansion, with the remaining amount from the fresh issue going towards general corporate purposes.

What are the key strengths highlighted for the Sonaselection India IPO?

Ans. Sonaselection India has delivered rapid financial growth, with revenue rising from Rs 121.31 crore in FY24 to Rs 517.60 crore in FY26, and the company has moved up the value chain from basic textile vending to higher margin, value-added fabric manufacturing, including a recent expansion into readymade garments. Its large, integrated processing facility incorporates solar power and water recycling infrastructure, supporting both operational scale and sustainability credentials that can appeal to export-oriented fashion brand customers.

What are the main risks or concerns flagged for the Sonaselection India IPO?

Ans. The most significant financial concern is the company's debt-to-equity ratio of 2.96, which is fairly high, and while part of the fresh issue proceeds will go towards debt repayment, this remains an important factor for investors to monitor going forward. The company's very rapid recent growth, off a relatively small revenue base a few years ago, may not be sustainable at the same pace, and the business remains exposed to cotton and synthetic yarn price volatility as well as cyclical demand in the fashion and apparel industry. As a maiden mainboard issue with a single manufacturing facility, geographic and facility concentration is also a risk worth noting.

Who are the lead manager and registrar for the Sonaselection India IPO?

Ans. Choice Capital Advisors Pvt. Ltd. is the book-running lead manager for the Sonaselection India IPO, responsible for structuring and managing the offer process. KFin Technologies Ltd. is the registrar to the issue and will handle the allotment process and crediting of shares to successful applicants' demat accounts.

Is the Sonaselection India IPO a good investment?

Ans. Sonaselection India offers exposure to a fast-growing, integrated fabric manufacturer that has successfully moved into higher margin product categories, which will appeal to investors interested in the textile manufacturing space. At the same time, a fairly high debt-to-equity ratio, the sustainability of very rapid recent growth, and single-facility concentration are factors that call for a careful, selective approach. As always, investors should study the RHP in detail, monitor subscription trends, and assess their own risk appetite before applying.