Sonaselection India Ltd. IPO: price band, dates, issue size, proceeds plan, financials, KPIs and risks

Sonaselection India Limited, an integrated fabric manufacturing and processing company based in Bhilwara, Rajasthan, has opened its mainboard initial public offering (IPO) on 17 September 2026. The IPO closes on 21 September 2026 and is priced in a band of ₹94 to ₹99 per share, with a lot size of 150 shares. The issue size is ₹141.57 crore and the entire offering is a fresh issue, with no offer for sale (OFS). The company is scheduled to list on 24 September 2026.

What Sonaselection India does and where it sits in the textile chain

Sonaselection India Limited converts greige fabric into value-added finished fabric using in-house bleaching, dyeing and finishing. Greige fabric refers to unfinished woven or knitted fabric that has not yet undergone processes such as bleaching and dyeing.

The company sources greige fabric externally and also gets greige made via outsourced conversion from yarn. It then processes this input at its Bhilwara facility to produce finished fabrics across cotton, cotton-lycra (stretch) fabrics, cotton blends, and polyester blends.

A key business shift described by the company is moving from predominantly job-work processing to manufacturing and direct sale of its own fabrics. In job-work, the processor typically earns processing charges for converting customer-owned material; in own manufacturing and sales, the company sells finished fabric under its own commercial arrangements, changing how revenues and working capital can behave across cycles.

To extend downstream, Sonaselection has also added a small readymade garments (RMG) presence through a wholly owned subsidiary, Sionnah Enterprises Private Limited. This is part of the company’s stated forward-integration approach within the textile value chain.

Milestones that frame capacity, compliance and forward integration

Sonaselection India was incorporated as a public company in 2022. In the same year, it acquired a running textile processing unit of Sona Processors (India) Limited as a going concern through a business transfer agreement (slump sale), which is a transfer of a business undertaking for a lump-sum consideration.

Capacity and operational milestones are concentrated in FY2024 and FY2025. In 2024, the company received consent to operate for increasing processing capacity from 54.00 million meters per annum to 82.44 million meters per annum. Also in 2024, a cotton fabric processing plant became operational, which the company links to its transition from job-work toward manufacturing.

From a scale perspective, the company crossed a ₹1,000 million revenue benchmark for the first time in 2024 and crossed ₹3,000 million revenue for the first time in 2025, as stated in the disclosed milestones. In 2025, it incorporated its wholly owned subsidiary, Sionnah Enterprises Private Limited, to enter the RMG segment.

These milestones matter in an IPO context because they provide the timeline for the company’s move toward a larger capacity footprint and a broader product and business mix.

Financial trajectory, profitability and the cash conversion point to watch

Across the disclosed periods, Sonaselection has reported growth in total revenue and profit after tax (PAT), alongside an expanding asset base. The table below summarises revenue, PAT, PAT margin and total assets for the reported years.

In addition to year-wise PAT margin, the company reports key performance indicators (KPIs) that include an EBITDA margin of 16.40% (EBITDA refers to earnings before interest, taxes, depreciation and amortisation) and a reported PAT margin of 6.58%.

Return ratios disclosed include return on equity (ROE) and return on net worth (RoNW) of 39.05%, along with return on capital employed (ROCE) of 19.69%. These ratios are presented alongside leverage indicators, including a disclosed debt-to-equity ratio of 2.48 times.

A specific operating point flagged in the company’s risk discussion is negative operating cash flows in FY2025–FY2026. This highlights that accounting profitability and cash generation can diverge, particularly for businesses where receivables and inventory requirements can rise with scale.

Issue structure, investor reservations and proposed use of fresh issue proceeds

The Sonaselection India IPO is entirely a fresh issue of ₹141.57 crore, with no OFS component. This means the proceeds of the offering are intended to accrue to the company (whereas OFS proceeds, when present, go to selling shareholders).

The stated objects of the issue include:

Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company from banks; funding capital expenditure toward purchase of plant and machinery at its existing manufacturing facility located at 18th K M Stone, Chittorgarh Road, Harnigarh, Bhilwara-311025, Rajasthan; and general corporate purposes.

Within these objects, the company has indicated proposed allocations of ₹80.00 crore toward repayment and/or pre-payment of certain borrowings and ₹50.61 crore toward capital expenditure for plant and machinery. General corporate purposes are included as an object in the disclosure, without a specified amount in the provided details.

For investor category allocation, the reservation disclosed is 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail individual investors. The disclosures also include an anchor investor framework: up to 60% of the QIB portion may be allocated to anchor investors, with a stated 33.33% reservation for domestic mutual funds within the anchor portion.

Valuation and KPI context at the price band

At the disclosed KPIs, Sonaselection reports an earnings per share (EPS) of ₹8.00 and a pre-IPO price-to-earnings (P/E) multiple of 12.38 times. The price-to-book multiple is disclosed at 4.00 times.

Operational margin and return indicators disclosed alongside valuation include an EBITDA margin of 16.40% and a reported PAT margin of 6.58%. The disclosed debt-to-equity ratio of 2.48 times provides additional context on leverage at the time of the disclosure.

These metrics are presented as snapshot indicators in the offer disclosures and are typically read together with the company’s stated objectives for proceeds use (including borrowings repayment and planned capital expenditure) and the working-capital intensity implied by the cash-flow risk disclosure.

Subscription and grey market signals, plus key risks and monitoring points

Subscription data at the snapshot time of 19 September 2026 (while the IPO is still open) shows total subscription at 0.20 times, with retail individual investors at 0.37 times and NIIs at 0.07 times, while QIB bids are recorded at 0 times at that point. Because the issue remains open until 21 September 2026, subscription can change materially, particularly toward the close.

Grey market premium (GMP) is an unofficial, off-exchange indicator and can change quickly. Across the latest ten observations provided (15 September 2026 to 19 September 2026), GMP ranged between ₹8 and ₹0 against a referenced issue price of ₹99, with the latest observations at ₹0.

Separately, the company’s disclosed risk discussion highlights concentration and continuity risks. These include geographic concentration in Rajasthan for both sales and purchases, reliance on a single manufacturing facility without backup, and negative operating cash flows in FY2025–FY2026.

Monitoring points that follow directly from the disclosed business model, objectives and risks include the following statements. Track whether operating cash flows move in line with reported profitability as scale increases, given the disclosed FY2025–FY2026 negative operating cash flow period. Track the company’s leverage and interest costs in relation to the stated plan to use a portion of IPO proceeds for repayment and/or pre-payment of borrowings. Track the execution of the proposed plant and machinery capital expenditure at the Bhilwara manufacturing facility as it relates to operational capability and throughput. Track disclosures around the wholly owned RMG subsidiary and any further steps toward forward integration and technical textiles, as these are part of the stated growth direction.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.