Sonaselection India Limited is set to launch its initial public offering (IPO) on 17 September 2026. The Sonaselection India IPO is a ₹141.57 crore mainboard book-built issue comprising a fresh issue of 1.43 crore equity shares, with no offer-for-sale (OFS) component. The price band is fixed at ₹94 to ₹99 per share.
Sonaselection India is an integrated fabric manufacturing and processing company based in Bhilwara, Rajasthan, with products including cotton, cotton-lycra, cotton-blended and polyester-blended fabrics. Its FY2026 revenue from operations stood at ₹516.95 crore, while profit after tax (PAT) was ₹34.02 crore. However, the company had a consolidated debt-equity ratio of 2.48x as of 31 March 2026, making debt reduction an important part of the IPO's investment case.
Table of Contents
- Sonaselection India IPO Details
- What Is Sonaselection India?
- How Does Sonaselection India Make Money?
- Sonaselection India Manufacturing Facility
- Sonaselection India IPO: Fresh Issue vs OFS
- Sonaselection India IPO Objects of the Issue
- Sonaselection India IPO Financial Performance
- Revenue Growth
- Profit Growth and Margins
- Debt Position
- Working Capital Position
- Sonaselection India IPO Valuation
- Sonaselection India IPO GMP
- Sonaselection India IPO Peer Comparison
- Sonaselection India IPO Strengths
- Sonaselection India IPO Risks
- Sonaselection India Promoters and Management
- Sonaselection India IPO Allotment Structure
- Sonaselection India IPO Lot Size
- Sonaselection India IPO Important Dates
- What Should Investors Watch in the Sonaselection India IPO?
- Sonaselection India IPO Review: Should You Apply?
- Sonaselection India IPO FAQs
The Sonaselection India IPO is a mainboard book-built issue scheduled to open on 17 September 2026. The issue will remain open until 21 September 2026, with the shares proposed to be listed on both the BSE and NSE.
| Particular |
Details |
| Company |
Sonaselection India Limited |
| IPO Type |
Mainboard IPO |
| Issue Type |
Book-built issue |
| IPO Open Date |
17 September 2026 |
| IPO Close Date |
21 September 2026 |
| Price Band |
₹94 to ₹99 per share |
| Face Value |
₹10 per share |
| Issue Size |
₹141.57 crore |
| Fresh Issue |
1,43,00,000 equity shares |
| Offer for Sale |
Nil |
| Lot Size |
150 shares |
| Minimum Investment |
₹14,850 |
| Listing |
BSE and NSE |
| Basis of Allotment |
22 September 2026 |
| Expected Listing Date |
24 September 2026 |
| Registrar |
KFin Technologies Limited |
| Book Running Lead Manager |
Choice Capital Advisors Private Limited |
The company's IPO documents and investor disclosures are available through its official investor-relations portal. The company's RHP and abridged prospectus filing is dated 9 September 2026, according to SEBI's public-issues records.
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Sonaselection India Limited was incorporated in 2022 and operates in the textile manufacturing and processing industry. The company initially operated through an acquired textile processing unit before moving towards a more manufacturing-led business model.
Its additional cotton fabric processing plant became operational in July 2024. The company operates an integrated manufacturing facility at Bhilwara, Rajasthan, covering approximately 49,540 square metres.
The company's product portfolio includes:
- 100% cotton fabrics
- Cotton-lycra or stretch fabrics
- Cotton-blended fabrics
- Polyester-blended fabrics
- Polyester-viscose fabrics
- Processed cotton fabrics
- Processed polyester fabrics
Sonaselection India also undertakes job-work processing of greige fabric for third-party customers based on specified quality, colour and finishing requirements.
Sonaselection India generates revenue through a combination of fabric manufacturing and processing activities.
Under its manufacturing business, the company produces fabrics that can be sold directly to customers. It also processes fabric, including job-work processing for third-party customers.
The business mix has changed significantly in recent years. In FY2024, the company was more dependent on service and job-work activities. By FY2025, the contribution from the sale of goods had increased substantially as the company transitioned towards manufacturing.
The DRHP shows that sale of goods accounted for 69.88% of revenue in FY2025, compared with 11.28% in FY2024.
This transition is relevant to the Sonaselection IPO analysis because a manufacturing-led business can require greater investment in inventory, equipment and working capital compared with a predominantly processing-based model.
Sonaselection India's manufacturing facility is located in Hamirgarh, Bhilwara, Rajasthan, an established textile manufacturing location.
According to the company's FY2026 Annual Report, the facility has the following characteristics:
| Facility Metric |
Details |
| Facility area |
Approximately 49,540 sq. metres |
| Installed processing capacity |
82.44 million metres per annum |
| Warehousing capacity |
Approximately 5 million metres |
| Location |
Hamirgarh, Bhilwara, Rajasthan |
| Energy infrastructure |
Rooftop solar power plant |
| Effluent treatment |
Zero-liquid-discharge plant |
The company uses machinery sourced from countries including Italy, Germany, China, the UK and Switzerland.
Sonaselection India also states that its facility has quality and sustainability certifications including GOTS, OCS, GRS, RCS, Regenagri Chain of Custody Criteria and OEKO-TEX. The facility also has HIGG FEM verification for 2024 and 2025.
The Sonaselection India IPO consists entirely of a fresh issue. The company is issuing 1.43 crore new equity shares, with no offer-for-sale component.
This distinction is important because funds raised through a fresh issue are received by the company, while an OFS generally allows existing shareholders to sell their shares.
In the Sonaselection IPO, the proceeds are primarily intended for debt repayment and capital expenditure. This means the issue is designed to strengthen the company's balance sheet while supporting investment in its manufacturing operations.
Sonaselection India plans to use the IPO proceeds for debt repayment, the purchase of plant and machinery and general corporate purposes.
| Purpose |
Amount |
| Repayment/prepayment of certain borrowings |
₹80.00 crore |
| Purchase of plant and machinery |
₹50.61 crore |
| General corporate purposes |
Balance amount |
The two specifically quantified uses account for ₹130.61 crore of the ₹141.57 crore issue. The remaining amount is intended for general corporate purposes, subject to applicable limits.
Debt Repayment: ₹80 Crore
Debt repayment is the largest identified use of the IPO proceeds.
As of FY2026, Sonaselection India's consolidated debt-equity ratio stood at 2.48x. The company therefore has a significant reliance on debt within its capital structure.
The proposed ₹80 crore repayment or prepayment could help reduce borrowings and interest costs. However, investors also need to monitor whether the company's expansion and working-capital requirements result in additional borrowing in the future.
Plant and Machinery: ₹50.61 Crore
Sonaselection India plans to invest ₹50.61 crore in plant and machinery at its existing manufacturing facility in Hamirgarh, Bhilwara.
The stated objectives include improving operational efficiency, product quality and process optimisation.
General Corporate Purposes
The remaining IPO proceeds will be used for general corporate purposes within applicable regulatory limits.
Sonaselection India's financial performance improved considerably between FY2024 and FY2026. Revenue expanded rapidly, while FY2026 PAT increased substantially from the previous year.
The company's consolidated financial performance is as follows:
FY2024 Financial Performance
| Financial Metric |
FY2024 |
| Revenue from Operations |
₹120.98 Cr |
| EBITDA |
₹28.49 Cr |
| EBITDA Margin |
23.55% |
| PAT |
₹13.10 Cr |
| PAT Margin |
10.82% |
| RoNW |
40.46% |
| ROCE |
16.18% |
| Debt/Equity |
3.72x |
| Working Capital Days |
104 |
FY2025 Financial Performance
| Financial Metric |
FY2025 |
| Revenue from Operations |
₹315.95 Cr |
| EBITDA |
₹58.12 Cr |
| EBITDA Margin |
18.39% |
| PAT |
₹18.56 Cr |
| PAT Margin |
5.88% |
| RoNW |
34.08% |
| ROCE |
16.97% |
| Debt/Equity |
2.96x |
| Working Capital Days |
122 |
FY2026 Financial Performance
| Financial Metric |
FY2026 |
| Revenue from Operations |
₹516.95 Cr |
| EBITDA |
₹84.77 Cr |
| EBITDA Margin |
16.40% |
| PAT |
₹34.02 Cr |
| PAT Margin |
6.58% |
| RoNW |
39.05% |
| ROCE |
19.69% |
| Debt/Equity |
2.48x |
| Working Capital Days |
134 |
The figures are based on the company's FY2026 Annual Report and the restated financial information disclosed for the IPO.
Revenue from operations increased from ₹120.98 crore in FY2024 to ₹315.95 crore in FY2025, before reaching ₹516.95 crore in FY2026.
This represents substantial top-line growth over the two-year period.
The company's shift from predominantly processing and service revenue towards manufacturing and sale of goods has been an important part of this growth. The increase in manufacturing activity has also changed the capital requirements of the business.
However, revenue growth alone does not provide a complete picture of the company's financial performance. Investors also need to consider margins, leverage, working capital and cash-flow conversion.
Sonaselection India's PAT increased from ₹13.10 crore in FY2024 to ₹18.56 crore in FY2025 and further to ₹34.02 crore in FY2026.
FY2026 PAT increased by approximately 83% year-on-year.
However, the margin trend presents a more mixed picture. EBITDA margin declined from 23.55% in FY2024 to 18.39% in FY2025 and 16.40% in FY2026.
PAT margin also declined from 10.82% in FY2024 to 5.88% in FY2025, before recovering to 6.58% in FY2026.
Therefore, although the company's earnings have grown, profitability has not increased at the same pace as revenue. The ability to stabilise or improve margins as the manufacturing business scales will be an important factor for investors.
Debt is one of the most important factors in the Sonaselection India IPO analysis.
The company's consolidated debt-equity ratio improved over the three-year period:
| Fiscal Year |
Debt/Equity |
| FY2024 |
3.72x |
| FY2025 |
2.96x |
| FY2026 |
2.48x |
The decline indicates an improvement in leverage. However, a 2.48x debt-equity ratio remains an important consideration when assessing the company's financial risk.
The ₹80 crore debt repayment component of the IPO is therefore particularly relevant. If implemented as planned, it could reduce leverage and the associated financial burden.
At the same time, Sonaselection's transition towards manufacturing has increased its working-capital requirements. Investors should therefore monitor whether future expansion leads to additional borrowing.
Working capital is another important area to monitor because the company's manufacturing-led model requires funds for inventory, work-in-progress, finished goods and receivables.
Working capital days increased from 104 days in FY2024 to 122 days in FY2025 and 134 days in FY2026.
| Fiscal Year |
Working Capital Days |
| FY2024 |
104 days |
| FY2025 |
122 days |
| FY2026 |
134 days |
The increase indicates that a greater amount of capital is being tied up in the operating cycle.
For investors, this means that strong revenue and PAT growth should be assessed alongside operating cash flow and working-capital intensity. Sustained growth could require additional funding if the working-capital cycle remains elevated.
At the upper price band of ₹99 per share, Sonaselection India would have an approximate ₹562.6 crore post-issue market capitalisation, based on the post-issue equity share count.
Using FY2026 PAT of approximately ₹34.02 crore, the post-issue P/E works out to roughly 16.5x.
Key valuation and profitability metrics include:
| Metric |
FY2026 / IPO Basis |
| IPO Price at Upper Band |
₹99 |
| EPS |
Approximately ₹8.09 |
| NAV |
₹24.78 per share |
| P/E |
Approximately 16.5x |
| Price-to-Book |
Approximately 4x |
| RoNW |
39.05% |
| ROCE |
19.69% |
| Debt/Equity |
2.48x |
The company's offer documents identify Vishal Fabrics, Sangam (India) and Nitin Spinners as listed peers.
However, the comparison needs to be interpreted carefully because the companies operate across different parts of the textile value chain. The IPO documents state that none of the identified companies is a perfect comparable for Sonaselection India's product profile and business model.
The Sonaselection India IPO GMP (Grey Market Premium) refers to the unofficial premium at which the IPO shares are reportedly traded in the grey market before listing. GMP is not regulated by SEBI and can change quickly, so it should not be treated as a guaranteed listing gain or an official indicator of the company's valuation.
As of the latest available updates, grey-market sources have reported ₹0 GMP for Sonaselection India IPO, implying an indicative listing price of around ₹99 against the upper IPO price of ₹99.
| GMP Metric |
Details |
| IPO Price at Upper Band |
₹99 |
| Latest Reported GMP |
₹0 |
| Indicative Listing Price |
₹99 |
| Indicative Gain |
0% |
However, GMP data is unofficial and may differ across sources. Investors should therefore consider it only as a market-sentiment indicator and not as a substitute for analysing the company's financials, valuation, debt position, working capital and IPO fundamentals.
For the latest SS Retail IPO GMP, subscription, allotment and listing updates, visit the Sonaselection India IPO page on Finology Ticker.
The FY2026 valuation comparison provided in the offer documents is as follows:
FY2026 P/E Comparison
| Company |
FY2026 P/E |
| Sonaselection India |
~16.5x* |
| Vishal Fabrics |
12.23x |
| Sangam (India) |
37.29x |
| Nitin Spinners |
18.22x |
*Approximate post-issue P/E based on the ₹99 IPO price and FY2026 PAT.
FY2026 RoNW Comparison
| Company |
FY2026 RoNW |
| Sonaselection India |
39.05% |
| Vishal Fabrics |
6.33% |
| Sangam (India) |
8.02% |
| Nitin Spinners |
12.77% |
*Approximate post-issue P/E based on the ₹99 IPO price and FY2026 PAT.
Sonaselection India's approximate P/E is below Sangam (India) but above Vishal Fabrics and below Nitin Spinners. Its reported FY2026 RoNW is higher than the three identified peers.
However, the difference in business models, scale and capital structures means that the peer comparison should not be treated as a direct valuation benchmark.
The Sonaselection IPO investment case has several potential strengths, particularly around revenue growth, manufacturing capabilities and the planned use of IPO proceeds.
1. Strong Revenue Growth
Revenue from operations increased from ₹120.98 crore in FY2024 to ₹516.95 crore in FY2026, supported by the company's transition towards manufacturing.
2. Significant FY2026 PAT Growth
PAT increased to ₹34.02 crore in FY2026 from ₹18.56 crore in FY2025, representing approximately 83% year-on-year growth.
3. Integrated Manufacturing Capabilities
Sonaselection India operates its own manufacturing and processing facility, with an installed processing capacity of 82.44 million metres per annum.
4. Established Textile Ecosystem
The company's manufacturing facility is located in Bhilwara, Rajasthan, and forms part of an established textile manufacturing ecosystem.
5. High RoNW
The company reported a 39.05% RoNW in FY2026, which is higher than the RoNW reported by the three listed peers identified in its offer documents.
6. Entirely Fresh Issue
The IPO does not include an OFS component. The ₹141.57 crore issue is entirely a fresh issue, meaning the funds are raised by the company.
7. Debt Reduction
The company has earmarked ₹80 crore of the IPO proceeds for repayment or prepayment of certain borrowings.
The Sonaselection India IPO also carries several risks that investors should consider alongside the company's growth.
1. High Leverage
The company's FY2026 debt-equity ratio was 2.48x despite improving from 3.72x in FY2024.
The substantial allocation of IPO proceeds towards debt repayment highlights the importance of leverage to the business.
2. Margin Compression
EBITDA margin declined from 23.55% in FY2024 to 16.40% in FY2026.
The company's future performance will therefore depend not only on revenue growth but also on its ability to manage costs and sustain profitability.
3. Rising Working-Capital Requirements
Working capital days increased from 104 days in FY2024 to 134 days in FY2026.
A continued increase could require additional funding as the business grows.
4. Textile Industry Cyclicality
Sonaselection operates in a competitive textile industry exposed to changes in:
- Cotton and other raw-material prices
- Fabric demand
- Domestic and export demand
- Fashion and consumer trends
- Energy costs
- Labour costs
- Competition from other textile manufacturers
5. Relatively Short Operating History
The company was incorporated in 2022, giving it a considerably shorter operating history than several established listed textile companies.
6. No Perfectly Comparable Listed Peer
The company's offer document states that its identified listed peers are not fully comparable because they operate across different portions of the textile value chain.
7. Greater Capital Intensity
The company's transition from job-work processing towards manufacturing has supported scale expansion but also requires greater investment in equipment, inventory and working capital.
The company's investor-relations disclosures identify Subhash Chandra Nuwal as Promoter and Chairman and Harshil Nuwal as Promoter and Managing Director. Deepank Bhandari is also identified as a promoter.
Subhash Chandra Nuwal has more than 35 years of experience in the textile industry, according to the company. Harshil Nuwal has been involved in expanding the group's weaving and cotton-fabric processing capabilities.
Promoter holding is expected to decline after the fresh issue because new equity shares will be issued to public investors.
The Sonaselection India IPO has the following proposed reservation structure:
| Investor Category |
Reservation |
| Qualified Institutional Buyers |
Not more than 50% |
| Non-Institutional Investors |
Not less than 15% |
| Retail Individual Investors |
Not less than 35% |
The final allocation remains subject to the issue documents and applicable regulations.
The Sonaselection India IPO lot size is 150 shares.
At the upper price band of ₹99, the minimum investment can be calculated as:
150 shares × ₹99 = ₹14,850
Therefore, a retail investor needs ₹14,850 to apply for one lot at the upper price band.
| Application |
Shares |
Amount at ₹99 |
| 1 lot |
150 |
₹14,850 |
| 13 lots |
1,950 |
₹1,93,050 |
| 14 lots |
2,100 |
₹2,07,900 |
| 68 lots |
10,200 |
₹10,09,800 |
The maximum retail application is 13 lots because the application amount must remain within the applicable retail category limit.
The key Sonaselection India IPO dates are as follows:
| IPO Event |
Date |
| IPO Opens |
17 September 2026 |
| IPO Closes |
21 September 2026 |
| Basis of Allotment |
22 September 2026 |
| Refund/Unblocking |
23 September 2026 |
| Shares Credited |
23 September 2026 |
| Expected Listing |
24 September 2026 |
These are the currently disclosed IPO dates and may be subject to changes in the final issue process.
The Sonaselection India IPO should be assessed on more than its strong revenue and PAT growth. Five areas are particularly important for investors.
Debt After the IPO
The first factor to monitor is whether the proposed ₹80 crore debt repayment materially reduces the company's leverage.
EBITDA Margins
EBITDA margin declined from 23.55% in FY2024 to 16.40% in FY2026. Future margin performance will indicate whether the company can maintain profitability as its manufacturing operations expand.
Working Capital
Working-capital days reached 134 days in FY2026. Investors should monitor inventory and receivable requirements as revenue grows.
Capacity Utilisation
The company has installed processing capacity of 82.44 million metres per annum. Future growth should be considered alongside the utilisation of this capacity and the associated operating costs.
Cash-Flow Conversion
PAT increased strongly in FY2026, but investors should also track whether reported earnings translate into operating cash flow as the manufacturing business scales.
The Sonaselection India IPO presents a growth-oriented textile manufacturing business with a significant balance-sheet component.
The positive factors include rapid revenue growth, strong FY2026 PAT growth, an integrated manufacturing facility, high RoNW, increasing manufacturing exposure and a fresh issue in which a substantial portion of the proceeds is earmarked for debt repayment and capital expenditure.
At the same time, the IPO carries meaningful risks. The company had a 2.48x debt-equity ratio in FY2026, working-capital days increased to 134 days, and EBITDA margins declined from 23.55% in FY2024 to 16.40% in FY2026. The company also operates in a cyclical and competitive textile industry and has a relatively short operating history.
At ₹99 per share, the implied post-issue valuation is approximately 16.5x FY2026 earnings. This is not obviously excessive against the identified peer group, although the comparison is imperfect because Sonaselection India is smaller and has a different business mix.
Overall, the Sonaselection India IPO may be more relevant for investors comfortable with manufacturing and textile-sector risks and willing to take a medium- to long-term view. The key investment consideration is whether the company can convert its rapid revenue growth into sustainable margins and cash flows while reducing leverage.
Want to compare Sonaselection India with other recent public issues across sectors? Use the IPO dashboard to assess issue structures, pricing and key IPO details.
1. What is the Sonaselection India IPO price band?
The Sonaselection India IPO price band is ₹94 to ₹99 per equity share.
2. When will the Sonaselection India IPO open?
The Sonaselection India IPO will open for subscription on 17 September 2026 and close on 21 September 2026.
3. What is the Sonaselection India IPO issue size?
The Sonaselection India IPO issue size is approximately ₹141.57 crore. The issue consists entirely of a fresh issue of 1.43 crore equity shares and has no OFS component.
4. What is the Sonaselection India IPO lot size?
The Sonaselection India IPO lot size is 150 shares. At the upper price band of ₹99 per share, the minimum investment is ₹14,850.
5. What are the major risks in the Sonaselection India IPO?
The major risks include the company's 2.48x debt-equity ratio, rising working-capital days, declining EBITDA margins, textile-industry cyclicality, competition, manufacturing-related capital requirements and its relatively short operating history.