Subscription Status on Final Day
Investor interest in the initial public offering (IPO) of Sonaselection India, a Rajasthan-based textiles manufacturer, picked up on the final day of bidding. According to NSE data, the issue was 1.23 times subscribed as of 11:30 am on September 21.
The company received bids for 15,49,90,064 shares against an offer of 1,00,10,000 shares. The retail investor category showed the strongest demand, with a subscription of 1.76 times. The non-institutional investor (NII) category was subscribed 1.05 times.
Grey Market Premium and Pricing
In the grey market, Sonaselection India shares were trading flat with a zero percent premium over the IPO price on the morning of September 18, as per InvestorGain. It is important to note that grey market premiums are unofficial and do not guarantee the stock's listing price or post-listing returns.
The IPO has a price band of Rs 94-99 per share. The issue, valued at Rs 141.6 crore, comprises an entirely fresh issue of 1.43 crore equity shares. The bidding window opened on September 17 and closes on September 21.
Anchor Investors and Use of Proceeds
Ahead of the IPO opening, Sonaselection India secured Rs 42.47 crore from anchor investors. Astorne Capital was the largest anchor investor, committing 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 was finalized at the upper end of the price band.
The company plans to utilize the net proceeds from the issue for several purposes: * **Debt Repayment:** Rs 80 crore will be used for partial repayment of debt. The company had total outstanding borrowings of Rs 263.8 crore as of July 2026. * **Capital Expenditure:** Rs 50.6 crore is earmarked for capital expenditure, including the purchase of plant and machinery at its existing manufacturing facility in Rajasthan. * **General Corporate Purposes:** The remaining funds will be allocated for general corporate purposes.
Financial Performance and Business Profile
Sonaselection India manufactures 100 percent cotton fabric, cotton lycra or stretch fabric, cotton blends, and polyester blends. Its primary manufacturing facility is located in Bhilwara, Rajasthan, known as the 'Vastranagari'. The facility has an installed processing capacity of 82.44 million metres per annum.
The company's revenue is derived from three segments: manufacturing, job-work for third-party customers, and readymade garments. In FY26, manufacturing contributed 81.5 percent of revenue, job-work accounted for 17.3 percent, and readymade garments made up 1.2 percent.
Financially, the company reported significant growth in FY26. Profit surged 83.3 percent to Rs 34 crore, up from Rs 18.6 crore in the previous year. Revenue increased by 63.6 percent to Rs 516.9 crore in FY26, compared to Rs 316 crore in FY25. Choice Capital Advisors is acting as the merchant banker for the IPO.