Sonaselection India IPO is a ₹141.57 crore book-built issue comprising a fresh issue of 1.43 crore equity shares. The IPO will open for subscription on September 17, 2026, and close on September 21, 2026. The allotment is expected to be finalized on September 22, 2026, with the shares scheduled to list on both NSE and BSE on September 24, 2026.
The price band has been fixed at ₹94 to ₹99 per share. The IPO lot size is 150 shares, requiring a minimum investment of ₹14,850 for retail investors at the upper end of the price band. Choice Capital Advisors Pvt. Ltd. is the book-running lead manager for the issue, while KFin Technologies Ltd. is the registrar.
Investors can refer to the Sonaselection India IPO Red Herring Prospectus (RHP) for detailed information about the company and the offer.
Company Overview
Incorporated in February 2022, the Company manufactures and processes a range of value-added textile products. Its product portfolio includes 100% cotton fabrics, cotton lycra (stretch) fabrics, cotton blends and polyester blends. It also processes 100% cotton, cotton blends, polyester-viscose (P/V) and polyester fabrics.
The Company initially operated primarily on a job-work basis before moving towards a manufacturing-led model. In 2022, it acquired an established textile processing unit and later commissioned a cotton fabric processing plant in July 2024.
Its manufacturing facility in Bhilwara, Rajasthan, covers approximately 49,540 sq. metres and has an installed processing capacity of 82.44 million metres per annum. The facility is equipped for processes such as bleaching, dyeing and finishing. The Company operates through a combination of in-house manufacturing and job-work processing, covering activities including quality control, grading, packing and outbound logistics.
The Company caters to various apparel and textile applications through its range of cotton, stretch, blended and polyester fabrics. It also processes greige fabric supplied by customers under job-work arrangements. Its operations are focused on maintaining product quality, cost efficiency and timely delivery based on customer specifications.
As of July 31, 2026, the Company employed 979 people across production, plant maintenance, dispatch and supply chain, quality assurance, safety and security, accounts and finance, sales and marketing, and other support functions.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 17 to 21 Sep, 2026 |
| Allotment | Tue, Sep 22, 2026 |
| Listing Date | Thu, Sep 24, 2026 |
| Face Value | ₹10 per share |
| Price Band | ₹94 to ₹99 per share |
| Lot Size | 150 Shares |
| Issue Type | Bookbuilding IPO |
| Sale Type | Fresh capital only |
| Total Issue Size | 1,43,00,000 shares (agg. up to ₹142 Cr) |
| Fresh Issue | 1,43,00,000 shares (agg. up to ₹142 Cr) |
| Shareholding Pre-Issue | 4,25,28,681 shares |
| Shareholding Post-Issue | 5,68,28,681 shares |
| Listing Exchange | BSE, NSE |
(Compiled from RHP and market updates)
Industry Context
- India is among the world’s leading textile producers and exporters, with the textile and apparel sector contributing around 2.3% to GDP, 13% to industrial production and 12% to exports.
- India’s textile processing industry was valued at approximately USD 159 billion in CY24 and is projected to reach USD 241 billion by CY30, supported by growth in natural and synthetic fibres.
- The industry is supported by an established domestic value chain covering fibre, yarn, fabric processing and garment manufacturing, along with major textile clusters such as Bhilwara, Surat and Tiruppur.
- Government initiatives including the PLI Scheme, PM MITRA Parks and technology-upgradation measures are supporting investments in textile infrastructure, modernization, productivity and value-added manufacturing.
- Growing global interest in sustainable sourcing and supply-chain diversification is creating opportunities for Indian textile manufacturers, although competition from China, Bangladesh and Vietnam remains significant.
Business Strengths
- Integrated fabric manufacturing and processing capabilities enable Sonaselection to manufacture finished fabrics while undertaking dyeing, processing and finishing activities within its Bhilwara facility, supporting greater value addition and operational control.
- An installed capacity of 82.44 million metres annually provides a substantial operating base, while the Bhilwara location offers access to an established textile manufacturing ecosystem, suppliers and potential expansion opportunities.
- The Company serves multiple textile applications through 100% cotton, cotton lycra, cotton blends and polyester blends, providing product diversification across fabric requirements and customer segments, reducing dependence on one category.
- The transition from job-work to manufacturing and direct sale of finished fabrics allows the Company to capture greater value addition, improve market flexibility and develop its customer base over time.
- The Company has expanded its customer base over recent years, with 909 customers served during Fiscal 2026 compared with 417 in Fiscal 2025 and 191 in Fiscal 2024, supporting business diversification.
Business Risks
- A significant portion of revenue and procurement is concentrated in Rajasthan, exposing the Company to regional disruptions and developments that could adversely affect operations, financial performance and cash flows.
- The Company operates from one manufacturing facility in Bhilwara, Rajasthan, without an alternate facility, making operations vulnerable to equipment failures, shutdowns, labour issues and other disruptions.
- The Company has experienced negative cash flows in the past, and sustained or significant negative cash flows could adversely affect its business, financial condition and growth prospects.
- The Company’s debt-equity ratio was 2.48 times in Fiscal 2026, while financing arrangements include restrictive covenants that could affect financial flexibility and increase repayment-related risks.
- The Company’s transition from job-work to manufacturing may not progress as expected, while losing significant job-work customers or weak customer acceptance could adversely affect operations and financial performance.
Financial Performance
Sonaselection India Ltd. – Financials (₹ in Million)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 5,169.49 | 3,159.52 | 1,209.79 |
| EBITDA | 847.74 | 581.19 | 284.87 |
| EBITDA Margin (%) | 16.40% | 18.39% | 23.55% |
| Net Profit / (Loss) After Tax | 340.23 | 185.63 | 130.95 |
| Net PAT Margin (%) | 6.58% | 5.88% | 10.82% |
| Return on Capital Employed (ROCE) (%) | 19.69% | 16.97% | 16.18% |
| Return on Net Worth (%) | 39.05% | 34.08% | 40.46% |
(Source: RHP)
Key Ratios & Metrics
| KPI | Mar 31, 2026 |
|---|---|
| Return on Equity (ROE) | 39.05% |
| Return on Capital Employed (ROCE) | 19.69% |
| Debt-to-Equity Ratio | 2.48 |
| Return on Net Worth (RoNW) | 39.05% |
| PAT Margin | 6.58% |
| EBITDA Margin | 16.40% |
| Net Asset Value (NAV per share) | ₹24.78 |
| Price to Book Value (P/B) | 4.00 |
(Source: RHP)
Objects of the Offer
- Repayment and/or pre-payment of borrowings: ₹80.00 crore is proposed to be used towards repayment and/or pre-payment, in full or part, of certain bank borrowings.
- Purchase of plant and machinery: ₹50.61 crore is proposed to be utilised for capital expenditure towards purchasing plant and machinery for the existing manufacturing facility in Bhilwara, Rajasthan.
- General Corporate Purposes: The remaining Net Proceeds will be utilised towards general corporate purposes, subject to the applicable limit of 25% of the Gross Proceeds.
Conclusion
Sonaselection India operates an integrated fabric manufacturing and processing business, with capabilities spanning fabric manufacturing, bleaching, dyeing and finishing. Its Bhilwara facility provides an installed processing capacity of 82.44 million metres annually, while its combination of own manufacturing and job-work processing supports multiple business requirements.
The IPO proceeds are proposed to be used mainly for repayment or pre-payment of certain borrowings, purchase of plant and machinery, and general corporate purposes. However, investors should also consider risks related to raw material price fluctuations, working capital requirements, dependence on a single manufacturing facility, financial leverage and the Company’s relatively recent transition towards a manufacturing-led model.
Overall, the IPO presents a combination of established textile processing capabilities and expansion plans, alongside the operational and financial risks outlined in the RHP.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory.Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
Paytm Money Ltd. SEBI Reg. No. Broking – INZ000240532; Depository Participant – IN – DP – 416 – 2019, Depository Participant Number: CDSL – 12088800. Trading and clearing member of NSE (90165, M52073), BSE (6707), MCX (57525), NCDEX (1315, M51110), and MSEI (85300). SEBI Reg. No. Research Analyst – INH000020086. Regd. Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms
