Subscription Status and Investor Response
The initial public offering (IPO) of Sonaselection India, a Rajasthan-based textiles manufacturer, has garnered 62% subscription as of 12:15 pm on September 18, according to data from the National Stock Exchange (NSE).
The Rs 141.6-crore issue has received bids for 61,71,750 shares against the 1,00,10,000 shares on offer. The retail investor category has been fully subscribed, indicating strong interest from individual investors. In contrast, the non-institutional investor (NII) category has seen a 29% subscription rate.
In the grey market, shares of Sonaselection India were trading at a premium (GMP) of 2% in the morning of September 18, as reported by InvestorGain. It is important to note that GMP is an unofficial indicator and does not guarantee the final listing price or investment returns.
Issue Details and Timeline
The IPO comprises an entirely fresh issue of 1.43 crore equity shares. The price band is fixed at Rs 94-99 per share. The issue opened on September 17 and will remain open for subscription until September 21. Choice Capital Advisors is acting as the merchant banker for the issue.
Anchor Investors and Fundraising
Prior to the public issue, Sonaselection India secured Rs 42.47 crore from anchor investors. Astorne Capital was the largest participant, investing Rs 22.7 crore for 22.96 lakh shares. India Max Investment Fund and Lords Multigrowth Fund each invested Rs 9.86 crore for 9.96 lakh shares. The allocation of 42.9 lakh shares to these three anchor investors was finalized at the upper end of the price band.
Financial Performance and Use of Proceeds
Sonaselection India has demonstrated significant financial growth in the recently concluded fiscal year. The company reported a profit of Rs 34 crore in FY26, marking an 83.3% increase from Rs 18.6 crore in FY25. Revenue also surged by 63.6% to Rs 516.9 crore in FY26, up from Rs 316 crore in the previous year.
The company plans to utilize the net proceeds from the IPO for strategic financial and operational goals. Rs 80 crore will be allocated towards the partial repayment of debt, addressing its total outstanding borrowings of Rs 263.8 crore as of July 2026. Additionally, Rs 50.6 crore will be directed towards capital expenditure, specifically for the purchase of plant and machinery at its existing manufacturing facility in Rajasthan. The remaining funds will be used for general corporate purposes.
Business Profile
Based in Bhilwara, Rajasthan—often referred to as the 'Vastranagari'—Sonaselection India operates a manufacturing facility with an installed processing capacity of 82.44 million metres per annum. The company manufactures 100% cotton fabric, cotton lycra or stretch fabric, cotton blends, and polyester blends.
Its revenue is derived from three key segments: manufacturing, job-work for third-party customers, and readymade garments. In FY26, manufacturing contributed 81.5% of the company's revenue, while job-work accounted for 17.3% and readymade garments made up the remaining 1.2%.