Sonaselection India IPO Review: Price Band, Dates, Lot Size, Financials and RisksSonaselection India IPO Review: Price Band, Dates, Lot Size, Financials and Risks

The Sonaselection India IPO opens on September 17 and closes on September 21, 2026. Sonaselection India is an integrated fabric manufacturing and processing company producing value-added textile products including 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends and polyester blends. The company is raising ₹141.57 crore through a fresh issue of ₹141.57 crore (no offer for sale). 

IPO Snapshot

Event	Date
IPO Opens	September 17, 2026
IPO Closes	September 21, 2026
Allotment Date	September 22, 2026
Refund	September 23, 2026
Shares Credited to Demat	September 23, 2026
Listing Date (BSE, NSE)	September 24, 2026

Price Band and Lot Size

Detail	Value
Price Band	₹94 to ₹99 per share
Face Value	₹10 per share
Lot Size	150 shares
Minimum Investment	₹14,100 to ₹14,850
Retail Maximum	13 lots, or 1,950 shares (₹1,93,050)
Fresh Issue	~₹141.57 crore
Offer for Sale	Nil
Total Issue Size	~₹141.57 crore
Listing	BSE and NSE

What Does Sonaselection India Actually Do

Sonaselection India, incorporated in February 2022, is an integrated fabric manufacturing and processing company engaged in the production of value-added textile products. It manufactures 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends and polyester blends, and also undertakes processing of 100% cotton, cotton blends, polyester-viscose (P/V) and polyester fabrics. The company transitioned from a job-work-based processing model to a manufacturing-led model after acquiring an established textile processing unit in 2022 and subsequently commissioned a cotton fabric processing plant in July 2024.

The company’s manufacturing facility is located in Bhilwara, Rajasthan, spread across approximately 49,540 sq. metres, with an installed processing capacity of 82.44 million metres per annum. The facility is equipped with modern textile processing machinery and undertakes key processes including bleaching, dyeing and finishing. The company follows an integrated operating model combining own manufacturing and job-work processing, enabling it to manage processing activities, quality control, grading, packing and outbound logistics while serving customers according to their technical and product specifications.

The company’s product portfolio primarily comprises 100% cotton fabrics, cotton lycra (stretch) fabrics, cotton blends and polyester blends, catering to varied apparel and textile applications. It also undertakes processing of greige fabric supplied by customers on a job-work basis.

As of July 31, 2026, the company had 979 employees, including personnel across production, plant maintenance, dispatch and supply chain, quality assurance, safety and security, accounts and finance, sales and marketing, and other support functions.

The Money Numbers

Metric	FY24	FY25	FY26
Total Income (₹ Crore)	121.31	316.47	517.60
Profit After Tax (₹ Crore)	13.10	18.56	34.02
Net Worth (₹ Crore)	38.88	70.07	104.16

Total income grew from ₹121.31 crore in FY24 to ₹517.60 crore in FY26, a rise of 64% between FY25 and FY26. Profit after tax more than doubled from ₹13.10 crore to ₹34.02 crore over the same period, up 83% between FY25 and FY26. Net worth nearly tripled from ₹38.88 crore to ₹104.16 crore.

EBITDA rose from ₹28.49 crore in FY24 to ₹58.12 crore in FY25 and ₹84.77 crore in FY26, with EBITDA margin improving from 23.49% to 16.40%. Total borrowings stood at ₹258.24 crore in FY26, up from ₹207.40 crore in FY25. Debt-to-equity stood at 2.48 times in FY26.

Return ratios were strong: ROE stood at 39.05% and ROCE at 19.69% in FY26, with RoNW at 39.05% and NAV of ₹24.78 per share. Basic EPS for FY26 was ₹8.00 pre-issue and ₹5.99 post-issue. At the upper price band of ₹99, this implies a pre-issue P/E of 12.38 times and a post-issue P/E of 16.53 times. Price-to-book value at the offer price works out to 4.00 times.

Objects of the Issue

Purpose	Amount (₹ Crore)
Repayment and/or prepayment, in full or part, of certain borrowings	80.00
Funding of capital expenditure towards purchase of plant and machinery at the existing manufacturing facility in Bhilwara, Rajasthan	50.61
General corporate purposes	Balance amount
Total identified objects	130.61

Against a fresh issue of ₹141.57 crore, the company has earmarked ₹80 crore for debt repayment and ₹50.61 crore for capital expenditure towards purchase of plant and machinery at its existing manufacturing facility in Bhilwara, Rajasthan. The remaining approximately ₹10.96 crore will be used for general corporate purposes.

Strengths

• Rapid revenue growth, with total income increasing 327% from FY24 to FY26.
• Strong profitability improvement, with PAT more than doubling from ₹13.10 crore to ₹34.02 crore between FY24 and FY26.
• Integrated business model combining manufacturing and job-work activities.
• Strategically located manufacturing facility in Bhilwara, Rajasthan, with modern technology.
• Experienced promoters supported by a professional management team.
• Strong customer relationships and high customer retention.
• Healthy track record and steady growth.
• Strong return ratios, including ROE of 39.05%, ROCE of 19.69%, and RoNW of 39.05% in FY26.
• Diversified product portfolio catering to varied apparel and textile applications.

Risks

• High debt-to-equity ratio of 2.48 times in FY26, indicating significant reliance on debt financing.
• EBITDA margin declined from 23.49% in FY24 to 16.40% in FY26, despite absolute EBITDA growth.
• PAT margin remains moderate at 6.58% in FY26.
• The company operates in a highly competitive textile industry with exposure to cyclicality in consumer demand, raw material price volatility (cotton, polyester, dyes and chemicals), and competition from both organized and unorganized players.
• The entire issue is a fresh issue, meaning no promoter exit, but also no liquidity for existing shareholders.
• Promoter shareholding will decline from 86.21% pre-issue to 64.52% post-issue due to dilution from the fresh issue.
• The company’s expansion depends on securing suitable raw material supplies and maintaining processing capacity utilization.
• The business is capital intensive, with total assets of ₹474.99 crore and total borrowings of ₹258.24 crore as of FY26.
• A significant portion of the fresh-issue proceeds (₹80 crore out of ₹141.57 crore) is earmarked for debt repayment, indicating high leverage.

How to Apply

You can apply through Alice Blue by selecting your investor category, choosing the number of lots, and submitting your bid between September 17 and September 21.

If you do not want to track subscription numbers throughout the bidding window, Alice Blue’s IPO feature can apply on your behalf. Choose your category and lot size, confirm your UPI ID, and set a subscription trigger, such as below 1x, between 1x and 5x, or above 5x. The system tracks Sonaselection India’s live subscription numbers and submits the application once the selected condition is met. You then receive a UPI payment request to approve. Funds are not deducted until shares are allotted.

Frequently Asked Questions