| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹94 to ₹99 | 150 | 17th Sep, 2026 – 21th Sep, 2026 | ₹142 Cr |
Sonaselection India Limited
Sonaselection India Limited is an integrated fabric manufacturing and processing company engaged in the production of value-added textile products, with capabilities spanning fabric manufacturing, processing and readymade garments. Its product portfolio includes 100% cotton fabric, cotton lycra, cotton blends, polyester blends, polyester-viscose and polyester fabrics, enabling it to cater to varied end-use requirements across the textile value chain. The company operates a manufacturing facility in Bhilwara, Rajasthan, spread across approximately 49,540 sq. mtr., with an installed processing capacity of 82.44 million metres per annum. Its integrated operating model covers sourcing of greige fabric or yarn, in-house bleaching, dyeing, finishing, quality testing, grading and outbound logistics, providing greater control over product quality, processing timelines and customer specifications. Incorporated in 2022, the company initially operated as a textile processing and job-work unit before transitioning towards a manufacturing-led model, with its cotton fabric processing plant becoming operational in July 2024. In FY26, manufacturing contributed 81.5% of revenue from operations, while job work and readymade garments contributed 17.3% and 1.2%, respectively, reflecting a significant shift towards higher-value manufacturing activities. Revenue and profitability witnessed strong growth during the period, supported by the company’s transition towards a manufacturing-led business model and increasing scale of operations. The company has also recently entered the readymade garments segment through its subsidiary, strengthening its presence across the textile value chain. With a growing manufacturing base, diversified fabric portfolio, increasing contribution from manufacturing and initial expansion into exports, Sonaselection is positioned to participate in the structural growth of India’s textile and apparel industry while retaining exposure to both manufacturing and processing revenues.
Objective of Sonaselection India Limited
The IPO comprises a Fresh Issue aggregating up to Rs.142 crores. The Net Proceeds from the Fresh Issue are proposed to be utilized for the following purposes:
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company from banks;
- Funding of capital expenditure towards purchase of plant and machineries at the existing Manufacturing Facility situated at located at 18th K M Stone, Chittorgarh Road, Hamirgarh, Bhilwara Rajasthan, India; and
- General Corporate purposes.
Rationale To Sonaselection India Limited
Investment Rationale
Strategically located manufacturing facility with modern technologies supporting operational efficiency and product quality
The company operates an integrated manufacturing facility in Bhilwara, Rajasthan, a well-established textile hub with a strong fibre-to-fabric ecosystem comprising spinning, weaving and dyeing units. Its presence within this established cluster provides access to a reliable supplier network, skilled manpower and ancillary services, supporting manufacturing efficiency and operational execution. The facility is designed to undertake end-to-end processing of cotton fabrics within a single location, which helps reduce material movement, production lead times and coordination requirements while enabling greater process control and consistency in output quality. The manufacturing unit is equipped with modern processing machinery, including stenter, merceriser, washing range, sanforiser, singeing, microsand suiding and cloth pressing machines, supported by real-time digital monitoring to improve process uniformity and reduce defects. The company also operates an in-house quality assurance laboratory equipped with specialised testing and colour management systems, enabling quality checks across various stages of production. Further, the integration of automation, digital process controls and qualified textile professionals supports the development of value-added and customised fabrics while improving operational efficiency and energy utilisation. The combination of a strategically located manufacturing facility, integrated processing capabilities, modern machinery and in-house quality assurance infrastructure provides the company with a scalable platform to cater to evolving customer requirements and strengthen its competitive position in the textile processing industry.
Integrated business model combining manufacturing and job-work activities supporting flexibility and capacity utilisation
The company follows an integrated business model combining in-house manufacturing with job-work processing, providing operational flexibility while enabling better control over quality, production schedules and capacity utilisation. The company initially commenced operations as a processing unit undertaking job-work activities following the acquisition of an established textile processing facility. As its customer base expanded, it strategically transitioned towards a manufacturing-led model by establishing its own cotton processing plant, which commenced operations in July 2024. This transition has enabled the company to process greige fabric into finished fabric in-house, providing greater control over product quality, production planning, cost efficiency and consistency while strengthening its position across the fabric value chain. The manufacturing-led approach has resulted in a significant increase in the contribution of manufacturing to revenue, which accounted for 81.5% of revenue from operations in FY26, compared with 11.3% in FY24, while the share of job-work revenue declined over the same period. At the same time, the continued presence of job-work activities provides flexibility to utilise available capacity and maintain optimal operating levels. Overall, the combination of manufacturing and job-work capabilities provides the company with a balanced operating model, allowing it to leverage its in-house infrastructure while retaining flexibility in capacity utilisation and customer requirements.
Valuation of Sonaselection India Limited
Sonaselection India Limited is a textile fabric manufacturer based in Bhilwara, Rajasthan, with capabilities across fabric manufacturing, dyeing, processing and finishing. The company operates an installed capacity of 82.44 million metres per annum and has transitioned from job-work services towards manufacturing and direct sales of finished fabrics, enabling greater value addition and market flexibility. The Indian textile and readymade garment industry offers growth opportunities supported by rising global sourcing diversification and India’s increasing role in global apparel manufacturing. The company is also expanding across the textile value chain through its subsidiary, with plans to enter the RMG segment. On the financial front, Revenue/EBITDA/PAT increased to Rs.517 Cr/Rs.85 Cr/Rs.34 Cr in FY26 from Rs.121 Cr/Rs.28 Cr/Rs.13 Cr in FY24, translating into revenue, EBITDA and PAT CAGRs of approximately 106.7%, 72.5% and 61.2%, respectively. At the upper price band of Rs.99, the issue is valued at approximately 12.2x FY26 diluted EPS of Rs.8.1. The valuation appears reasonable relative to the company’s strong earnings growth, although margin moderation and elevated debt remain key factors to monitor. The issue proceeds are also proposed to be used partly for repayment/prepayment of borrowings and purchase of plant and machinery. Considering the strong revenue and profit growth and relatively moderate valuation, we recommend a “SUBSCRIBE” rating.
What is the Sonaselection India Limited IPO?
The initial public offer (IPO) of Sonaselection India Limited an early investment opportunity in. A stock market investor can buy Sonaselection India Limited IPO shares by applying in IPO before Sonaselection India Limited get listed at the stock exchanges. An investor could invest in Sonaselection India Limited for short term listing gain or a long term.
How to apply for the Sonaselection India Limited IPO through StoxBox?
To apply for the Sonaselection India Limited through StoxBox one can apply from the website and also from the app. Click here
When will the Sonaselection India Limited IPO open?
Sonaselection India Limited IPO is opening on 17th Sep 2026. Apply Now
What is the lot size of the Sonaselection India Limited IPO?
The Lot Size of Sonaselection India Limited 150 equity shares. Login to your account now.
When is the Sonaselection India Limited IPO allotment date?
The allotment Date for Sonaselection India Limited IPO 22nd Sep 2026. Login to your account now.
When is the Sonaselection India Limited IPO listing date?
The listing Date for Sonaselection India Limited is 24th Sep 2026. Login to your account now
What is the minimum investment required for the Sonaselection India Limited IPO?
In the Retail segment the minimum investment required is Rs 14,850 Login to your account now
What is the maximum investment allowed for Sonaselection India Limited IPO?
In the Retail segment the maximum investment requirement Rs 1,93,050 Login to your account now
What are the risks associated with investing in the Sonaselection India Limited IPO?
- The company operates in a competitive textile industry and faces competition from domestic players. Increased competition may result in pricing pressure, loss of market share and the need for higher investments, which could adversely affect its business, margins and financial performance.
- The company is exposed to fluctuations in the prices and availability of raw materials. Any increase in the cost of key raw materials or disruption in their availability could increase production costs, affect margins and adversely impact the company’s results of operations and financial condition.
- The company has significant working capital requirements and relies on borrowings to meet its financial needs. Any inability to obtain adequate working capital or additional financing on acceptable terms could adversely affect its business operations, liquidity and financial condition.
When will the Sonaselection India Limited IPO shares be credited to my Demat account?
The Sonaselection India Limited will be credited to the account on allotment date which is 22nd Sep 2026. Login to your account
Where can I find the Sonaselection India Limited IPO prospectus?
The prospectus of Sonaselection India Limited IPO prospectus can be found on the website of SEBI, NSE and BSE
