Sonaselection India IPO

Mainboard • Equity • Fresh capital only

LISTEDMAINBOARDEquity

Sonaselection India

Price band

₹94 – ₹99

Lot size

150 shares

Min investment

₹14,850

Issue size

₹141.57 Cr

About the company

Sonaselection India Limited was set up in February 2022. It is an integrated fabric manufacturing and processing company, which means it both makes fabric and does the finishing work that turns raw cloth into a saleable product. It manufactures 100% cotton fabric, cotton lycra or stretch fabric, cotton blends and polyester blends. It also processes fabric for others, covering 100% cotton, cotton blends, polyester viscose and polyester fabrics. The company started as a job work processor, that is doing finishing work on other people's cloth for a fee, and moved to a manufacturing led model after buying an established textile processing unit in 2022. It then commissioned its own cotton fabric processing plant in July 2024. Its facility is at Bhilwara in Rajasthan, spread over about 49,540 square metres, with an installed processing capacity of 82.44 million metres a year. The main processes carried out there are bleaching, dyeing and finishing. It runs a mixed model of its own manufacturing along with job work processing, and handles quality control, grading, packing and outbound logistics to each customer's specification.

Sonaselection India Limited is an integrated fabric manufacturing and processing company making cotton, cotton lycra and blended fabrics. It runs a Bhilwara facility of about 49,540 square metres with installed processing capacity of 82.44 million metres a year, having moved from job work to its own manufacturing after acquiring a processing unit in 2022.

IPO details

Issue price: ₹99
Price band: ₹94 – ₹99
Face value: ₹10
Lot size: 150
Min investment: ₹14,850
Issue size: ₹141.57 Cr
Sale type: Fresh capital only
Listing on: BSE, NSE
BSE scrip code: 7973
NSE symbol: SONA.NS

Lot size & investment by category

APPLICATION	LOTS	SHARES	AMOUNT
Retail (Min)	1	150	₹14,850
Retail (Max)	13	1,950	₹1,93,050
S-HNI (Min)	14	2,100	₹2,07,900
B-HNI (Min)	68	10,200	₹10,09,800

Investor reservation

CATEGORY	RESERVED
QIB	Not more than 50% of the Issue
Retail	Not less than 35% of the Net Offer
NII	Not less than 15% of the Issue Size

Objects of the issue

1Repayment and/or pre-payment, in full or part, of certain borrowings80.00

2Funding of capital expenditure towards purchase of plant and machineries at the existing Manufacturing Facility situated at 18th K M Stone, Chittorgarh Road, Hamirgarh, Bhilwara- 311025 Rajasthan, India50.61

3General Corporate Purposes

Financials

Rs. Crore • restated

METRIC	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	474.99	374.77	203.50
Total Income	517.60	316.47	121.31
Profit After Tax	34.02	18.56	13.10
EBITDA	84.77	58.12	28.49
NET Worth	104.16	70.07	38.88
Reserves and Surplus	61.63	47.10	35.78
Total Borrowing	258.24	207.40	144.60

Key performance indicators

P/E Ratio

16.53

EPS (₹)

5.99

RoE

39.05%

RoCE

19.69%

RoNW

39.05%

PAT Margin

6.58%

EBITDA Margin

16.40%

Debt / Equity

2.48

NAV (₹)

24.78

✓ Strengths

• Sales have grown more than four times in two years, from Rs 121.31 crore in FY2024 to Rs 316.47 crore in FY2025 and Rs 517.60 crore in FY2026.

• Profit has grown strongly, from Rs 13.10 crore in FY2024 to Rs 18.56 crore in FY2025 and Rs 34.02 crore in FY2026.

• EBITDA has tripled over the same period, from Rs 28.49 crore to Rs 84.77 crore.

• Return on net worth is high at 39.05%, with RoCE of 19.69%.

• The issue is priced moderately at about 16.53 times earnings on an EPS of Rs 5.99.

• The installed processing capacity of 82.44 million metres a year is substantial for a company of this size.

• Running both its own manufacturing and job work processing means the plant can be kept busy even when its own order book is light.

• The whole issue is fresh capital, with Rs 80 crore repaying borrowings and the rest going into plant and machinery at the Bhilwara facility.

⚠ Risks

• Debt is very high. Total borrowing was Rs 258.24 crore against a net worth of Rs 104.16 crore as on 31 March 2026, a debt to equity ratio of 2.48, and it has risen every year from Rs 144.60 crore in FY2024.

• The company is very young. It was set up only in February 2022, so it has under five years of history and has not been tested through a textile downturn.

• The profit margin is thin at 6.58%.

• Even after using Rs 80 crore of the issue to repay borrowings, a large loan will remain on the books.

• Dyeing and finishing uses a lot of water and produces effluent, so the company carries pollution control and environmental compliance risk.

• The entire operation is at one facility in Bhilwara, so there is single location risk.

• Cotton and yarn prices move sharply and cannot always be passed on to fabric buyers.

• Promoter holding will come down from 86.21% to 64.52% after the issue.

Promoters & holding

Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari and Sona Polyspin Pvt.Ltd

Pre-issue promoter holding

86.21%

Post-issue promoter holding

64.52%

Data refreshed 07 Nov 2026, 04:55 pm IST. GMP is unofficial market sentiment, not investment advice.