Sonaselection India Ltd. IPO

The company manufactures 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends, and polyester blends, and also processes 100% cotton, cotton blends, polyester-viscose (P/V), and polyester fabrics on a job-work basis. It transitioned from a job-work processing model to a manufacturing-led model after acquiring an established textile processing unit in 2022, later commissioning a cotton fabric processing plant in July 2024.

Its manufacturing facility in Bhilwara, Rajasthan spans approximately 49,540 sq. metres with an installed processing capacity of 82.44 million metres per annum, equipped for bleaching, dyeing, and finishing. The company follows an integrated model combining own manufacturing and job-work processing, managing quality control, grading, packing, and outbound logistics per customer specifications. As of July 31, 2026, it had 979 employees across production, plant maintenance, dispatch/supply chain, quality assurance, safety/security, accounts/finance, and sales/marketing functions.

Cited competitive strengths include a healthy track record and steady growth, strong customer relationships with high retention, a strategically located manufacturing facility with modern technology, experienced promoters supported by a professional management team, and an integrated business model combining manufacturing and job-work activities.

The ₹141.57 Cr book-built IPO is entirely a fresh issue of 1.43 crore shares, with no offer-for-sale component. The price band is ₹94–₹99 per share, with a lot size of 150 shares. Net proceeds are earmarked for repayment/prepayment of borrowings (₹80.00 Cr) and capital expenditure on plant and machinery at the existing Bhilwara facility (₹50.61 Cr), with the remaining balance toward general corporate purposes.

At the upper price band, the IPO is priced at a post-issue P/E of 16.53x (pre-issue: 12.38x) and a Price-to-Book multiple of 4.00x based on FY26 NAV of ₹24.78. RoNW stood at 39.05% for FY26. Revenue grew 64% and PAT grew 83% year-on-year between FY25 and FY26, though the company carries relatively high leverage with a Debt/Equity ratio of 2.48. Promoter shareholding will fall from 86.21% pre-issue to 64.52% post-issue, reflecting the fully fresh-issue nature of the offer (no OFS).