1. IPO Snapshot
| Particular | Details |
|---|
| Company Name | Sonaselection India Limited |
| IPO Type | 100% Book Built Issue; Fresh Issue |
| Fresh Issue | Up to 14,300,000 Equity Shares |
| Total Issue Size | Up to 14,300,000 Equity Shares |
| Face Value | ₹10 per Equity Share |
| Price Band | ₹94 to ₹99 per Equity Share |
| Lot Size | 150 Equity Shares |
| Opening Date | September 17, 2026 |
| Closing Date | September 21, 2026 |
| Basis of Allotment | On or about September 22, 2026 |
| Listing Date | September 24, 2026 |
| Listing Exchange | BSE and NSE; NSE is Designated Stock Exchange |
| Registrar | KFin Technologies Limited |
| Lead Manager | Choice Capital Advisors Private Limited |
2. IPO Details
| Particular | At Floor Price ₹94 | At Cap Price ₹99 |
|---|
| Fresh Issue Shares | 1,43,00,000 | 1,43,00,000 |
| Fresh Issue Amount | ₹13,442.00 lakh | ₹14,157.00 lakh |
| Total Issue Shares | 1,43,00,000 | 1,43,00,000 |
| Pre-Issue Shares | 4,25,28,681 | 4,25,28,681 |
| Post-Issue Shares | 5,68,28,681 | 5,68,28,681 |
| Post-Issue Market Capitalisation | ₹53,419.00 lakh | ₹56,260.40 lakh |
3. Issue Reservation
| Category | Shares / Allocation |
|---|
| QIB | Not more than 50% of Issue |
| Non-Institutional Bidders | Not less than 15% of Issue |
| Retail Individual Bidders | Not less than 35% of Issue |
| Anchor Investors | Up to 60% of QIB Portion may be allocated |
4. IPO Lot Size
| Application | Lots | Shares | Amount at ₹94 | Amount at ₹99 |
|---|
| Retail (Min) | 1 | 150 | ₹14,100 | ₹14,850 |
| Retail (Max) | 13 | 1,950 | ₹1,83,300 | ₹1,93,050 |
| S-HNI (Min) | 14 | 2,100 | ₹1,97,400 | ₹2,07,900 |
| S-HNI (Max) | 67 | 10,050 | ₹9,44,700 | ₹9,94,950 |
| B-HNI (Min) | 68 | 10,200 | ₹9,58,800 | ₹10,09,800 |
5. About the Company
Sonaselection India Limited was incorporated as an unlisted public limited company on February 11, 2022 and commenced business after filing Form INC-20A on February 24, 2022. The Company acquired a running textile processing unit from Sona Processors (India) Limited under a Business Transfer Agreement dated June 17, 2022, on a going-concern basis through a slump sale for ₹162.10 million.
The Company operates as an integrated fabric manufacturing and processing company focused on value-added fabrics. Its portfolio includes 100% cotton fabrics, cotton Lycra/stretch fabrics, cotton blends and polyester blends, along with processing of greige fabrics such as cotton, cotton blends, polyester-viscose and polyester fabrics.
The Company operates a single manufacturing facility at 18th K.M. Stone, Chittorgarh Road, Hamirgarh, Bhilwara, Rajasthan, covering approximately 49,540 sq. metres. In FY2026, the facility had an installed processing capacity of 82.44 million metres per annum, against actual production of 68.19 million metres, resulting in capacity utilisation of 82.71%.
Revenue Mix
| Business Vertical | FY2026 ₹m | FY2026 % | FY2025 ₹m | FY2025 % | FY2024 ₹m | FY2024 % |
|---|
| Manufacturing | 4,212.94 | 81.50% | 2,207.87 | 69.88% | 136.50 | 11.28% |
| Job Work | 894.41 | 17.30% | 951.65 | 30.12% | 1,073.29 | 88.72% |
| RMG | 62.14 | 1.20% | — | — | — | — |
| Total | 5,169.49 | 100.00% | 3,159.52 | 100.00% | 1,209.79 | 100.00% |
Revenue composition has shifted significantly toward manufacturing, which contributed 81.50% of FY2026 revenue compared with 69.88% in FY2025 and 11.28% in FY2024. Job work contributed 17.30%, while RMG contributed 1.20% in FY2026.
The Company has an in-house quality assurance laboratory and states that it holds or has received certifications/recognitions including OEKO-TEX Standard 100, GOTS Version 7.0, OCS, GRS, RCS and Regenagri Chain of Custody Criteria – Textiles Version 1.0, along with HIGG verification certificates.
Key Business Strategies
The Company's stated strategies include:
- Forward integration: Expanding into ready-made garments (RMG) through its wholly owned subsidiary, Sionnah Enterprises Private Limited.
- Renewable energy: Increasing the use of renewable energy to reduce operating costs and energy dependence.
- Cost optimisation: Improving operating efficiencies and controlling production costs.
- Deleveraging: Repayment/prepayment of borrowings to reduce financial leverage.
- Technical textiles: Expanding into technical textile applications.
The Company also states that it entered into an MOU in May 2026 to manufacture military-specification fabrics for a technical textile manufacturer.
6. Restated Financial Information
| Particular | FY2026 ₹m | FY2025 ₹m | FY2024 ₹m |
|---|
| Revenue from Operations | 5,169.49 | 3,159.52 | 1,209.79 |
| Other Income | 6.47 | 5.14 | 3.31 |
| Total Income | 5,175.96 | 3,164.66 | 1,213.10 |
| EBITDA | 847.74 | 581.19 | 284.87 |
| Profit Before Tax | 480.52 | 260.80 | 169.45 |
| Profit After Tax | 340.23 | 185.63 | 130.95 |
| Basic EPS (₹) | 8.09 | 4.57 | 3.25 |
| Diluted EPS (₹) | 8.09 | 4.49 | 3.25 |
| Finance Costs | 176.89 | 147.25 | 47.45 |
| Depreciation & Amortisation | 190.33 | 173.14 | 67.97 |
| Net Worth / Total Equity | 1,041.63 | 700.71 | 388.81 |
| Equity Share Capital | 425.29 | 158.74 | 31.00 |
| Other Equity | 616.34 | 541.97 | 357.81 |
| Total Assets | 4,749.85 | 3,747.67 | 2,034.95 |
| Non-current Borrowings | 1,263.39 | 1,307.72 | 1,117.60 |
| Current Borrowings | 1,319.01 | 766.25 | 328.42 |
| Trade Receivables | 1,036.99 | 696.87 | 139.87 |
| Inventory | 1,538.53 | 970.76 | 190.69 |
| Cash & Cash Equivalents | 23.81 | 2.15 | 41.40 |
| Net Cash Flow from Operating Activities | (109.89) | (141.77) | 176.08 |
| Net Cash Flow from Investing Activities | (199.99) | (504.19) | (1,081.20) |
| Net Cash Flow from Financing Activities | 331.54 | 606.71 | 946.50 |
| Tangible Capex | (225.64) | (492.44) | (1,052.94) |
| Intangible Capex | (3.97) | (6.41) | — |
7. Key Performance Indicators
| KPI | FY2026 | FY2025 | FY2024 |
|---|
| Revenue from Operations (₹m) | 5,169.49 | 3,159.52 | 1,209.79 |
| EBITDA (₹m) | 847.74 | 581.19 | 284.87 |
| EBITDA Margin | 16.40% | 18.39% | 23.55% |
| PAT (₹m) | 340.23 | 185.63 | 130.95 |
| PAT Margin | 6.58% | 5.88% | 10.82% |
| RoNW | 39.05% | 34.08% | 40.46% |
| ROCE | 19.69% | 16.97% | 16.18% |
| Debt-Equity Ratio | 2.48x | 2.96x | 3.72x |
| DSCR | 1.70x | 1.58x | 1.81x |
| Sale of Services | 17.30% | 30.12% | 88.72% |
| Sale of Goods | 82.70% | 69.88% | 11.28% |
| Days Working Capital | 134 | 122 | 104 |
| Inventory Days | 150 | 115 | 127 |
| Debtors Days | 61 | 48 | 44 |
| Creditors Days | | | |
8. IPO Valuation
| Metric | Disclosure |
|---|
| Price Band | ₹94–₹99 |
| FY2026 Basic EPS | ₹8.09 |
| FY2026 Diluted EPS | ₹8.09 |
| P/E at Floor Price | 11.62x |
| P/E at Cap Price | 12.24x |
| Industry P/E – Highest | 37.29x |
| Industry P/E – Lowest | 12.23x |
| Industry P/E – Average | 22.58x |
| RoNW weighted average | 37.63% |
| NAV as at March 31, 2026 | ₹24.78 |
| NAV after Issue – Floor Price | ₹42.35 |
| NAV after Issue – Cap Price | ₹43.62 |
| WACA – Primary issuance | ₹56.54 |
| Floor Price / WACA | 1.66x |
| Cap Price / WACA | 0.57x as stated |
9. Peer Comparison
| Company | Revenue ₹m | FV ₹ | P/E | Basic EPS ₹ | Diluted EPS ₹ | RoNW | NAV ₹ |
|---|
| Sonaselection India Limited | 5,169.49 | 10.00 | [●] | 8.09 | 8.09 | 39.05% | 24.78 |
| Vishal Fabrics Limited | 16,021.10 | 5.00 | 12.23 | 1.52 | 1.52 | 6.33% | 26.12 |
| Sangam (India) Limited | 32,345.30 | 10.00 | 37.29 | 16.44 | 16.44 | 8.02% | 211.85 |
| Nitin Spinners Limited | 32,138.67 | 10.00 | 18.22 | 31.58 | 31.58 | 12.77% | 261.60 |
10. Shareholding & Capital Structure
| Particular | Pre-Issue | Post-Issue |
|---|
| Authorised Capital | 60,000,000 Equity Shares; ₹600.00 million | 60,000,000 Equity Shares; ₹600.00 million |
| Issued, Subscribed & Paid-up Capital | 42,528,681 Equity Shares; ₹425.29 million | 56,828,681 Equity Shares; ₹568.29 million |
| Fresh Issue | — | Up to 14,300,000 Equity Shares |
| Total Shares | 42,528,681 | 56,828,681 |
11. Objects of the Issue
| Object | Amount | Deployment |
|---|
| Repayment / prepayment of certain borrowings | ₹800.00 million | Fiscal 2027 |
| Purchase of plant and machinery | ₹506.11 million | Fiscal 2027 |
| General Corporate Purposes | [●] | Fiscal 2027 |
12. Key Risk Factors
| Category | Risk / RHP Disclosure | Potential Impact |
|---|
| Business / Operational | The Company operates through a single manufacturing facility in Bhilwara. A slowdown or shutdown at the facility could affect operations and financial performance. | Potential interruption to production, deliveries and cash flows. |
| Geographic / Procurement | A significant portion of revenue and procurement is concentrated in Rajasthan. FY2026 revenue from Rajasthan was ₹1,928.80 million, while procurement from Rajasthan was ₹3,448.05 million. | Adverse events in Rajasthan could have a disproportionate effect on operations. |
| Supplier | Top ten suppliers represented 58.87% of purchases in FY2026; the Company has not entered into contracts with its suppliers. | Supplier loss, delays or quality issues could disrupt production and margins. |
| Customer | The top ten customers contributed 29.44% of revenue from operations in FY2026. | Loss of customers or reduced orders could affect revenue. |
| Working Capital | Working capital requirements were ₹1,706.08 million in FY2026, funded through borrowings and internal accruals. | Higher working-capital needs may require additional debt or equity and increase financing costs. |
| Financial / Leverage | Debt-equity ratio was 2.48x in FY2026, compared with 2.96x in FY2025 and 3.72x in FY2024. | Higher leverage increases interest obligations and reduces financial flexibility. |
| Cash Flow | The Company reported negative operating cash flow of ₹109.89 million and negative investing cash flow of ₹199.99 million in FY2026. | Sustained negative cash flows could affect liquidity and funding needs. |
| Collateral / Borrowings | Promoters and promoter-group members have pledged personal property and guarantees for certain Company borrowings. Aggregate borrowings were approximately ₹2,363.19 million as of July 31, 2026 in the highlighted risk disclosure. | Enforcement or inability to maintain collateral support could have financial or operational consequences. |
| Litigation | The Company and related parties have outstanding tax, civil, criminal and other proceedings disclosed in the RHP. | Adverse outcomes could affect business, financial condition or reputation. |
| Regulatory / Compliance | The Company reports past delays and irregularities in filings including CHG-1, ADT-1, PAS-3, DPT-3, MGT-14, AOC-4 and DIR-12. | Future non-compliance could lead to penalties, inquiries or delays in corporate actions. |
| Management / Regulatory History | The RHP highlights past director disqualification and associations with struck-off entities concerning Deepank Bhandari. | Future regulatory action or scrutiny could affect the Company. |
| Contingent Liabilities | Commitments relating to export obligations under the EPCG scheme were ₹200.05 million for FY2026. | Failure to meet obligations could result in customs duties, interest or penalties. |
13. Litigation & Contingent Liabilities
| Area | Disclosure |
|---|
| Company – Regulatory / Statutory Actions | Mahendra Singh labour/industrial dispute; Yash Textile Machines Pvt. Ltd. claim of ₹2.45 million before MSE Facilitation Council, Konkan, Thane |
| Promoters – Criminal Proceedings | FIR No. 05/2015 involving Subhash Nuwal, Uma Nuwal, Harshil Nuwal and Rajnikant Saraswat; settlements in 2023 aggregating ₹1.08 million; formal closure pending |
| Promoters – Litigation by Promoters | MCRC/49058/2018 seeking quashing of FIR No. 05/2015; pending adjudication |
| Directors Other Than Promoters | Nil for outstanding criminal, regulatory/statutory and material civil litigation |
| Subsidiary | Nil for outstanding criminal, regulatory/statutory and material civil litigation |
| KMP / Senior Management | Nil except the FIR and related quashing proceedings noted above |
| Tax Proceedings – Company | 1 direct-tax case; ₹0.50 million to the extent quantifiable and ascertainable |
| Contingent Commitments | ₹200.05 million in FY2026 relating to EPCG export obligations; no claims against the Company acknowledged as debt |
| Material Creditors | 6 material creditors; ₹524.85 million. Total outstanding dues to 267 creditors were ₹812.42 million as of March 31, 2026 |
14. Registrar
| Particular | Details |
|---|
| Name | KFin Technologies Limited |
| Registered Address | 301, The Centrium, 3rd Floor, 57, Lal Bahadur Shastri Road, Nav Pada, Kurla (West), Mumbai–400070, Maharashtra |
| Corporate Address | Selenium Tower-B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad–500032, Telangana |
| Contact Person | M Murali Krishna |
| Telephone | +91 40 6716 2222 |
| Email | sona.ipo@kfintech.com |
| Investor Grievance Email | einward.ris@kfintech.com |
| Website | www.kfintech.com |
| SEBI Registration No. | INR000000221 |
15. Lead Manager
16. Company Contact Details
| Particular | Details |
|---|
| Registered & Corporate Office | 18th KM Stone, Chittorgarh Road, Hamirgarh, Bhilwara–311025, Rajasthan, India |
| Telephone | +91 1482-286043 |
| Company Secretary & Compliance Officer | Harish Sharma |
| Email | cs@sonaselection.com |
| Website | www.sonaselection.com |
| CIN | U17299RJ2022PLC079631 |
| Investor Grievance Contact | Harish Sharma / investor grievance mechanism disclosed in RHP |
