Sonaselection India Debuts at Premium
Shares of Sonaselection India made a positive debut on Indian stock exchanges on September 24, trading at a premium over its issue price. On the National Stock Exchange (NSE), the stock opened at Rs 102.21, representing a 3.34% gain over the IPO price of Rs 99 per share. On the Bombay Stock Exchange (BSE), the shares debuted at Rs 102, up 3.03% from the issue price.
Following the listing, the company's market capitalisation stood at approximately Rs 579.65 crore. The debut price was higher than the grey market premium (GMP) reported by InvestorGain on September 23, which had indicated a GMP of Rs 0, implying a listing price equal to the upper end of the price band.
Subscription and Issue Details
The Rs 141.57-crore initial public offering (IPO) was subscribed 2.01 times during the three-day bidding period from September 17 to September 21. According to NSE data, investors placed bids for 2,01,04,050 shares against 1,00,10,000 shares offered.
The retail investor category was the most subscribed, receiving 2.50 times subscription, while the non-institutional investor (NII) category saw 1.99 times subscription. The issue consisted entirely of a fresh issue of 1.43 crore equity shares, with a price band of Rs 94-99 per share.
Use of Proceeds and Anchor Investors
Sonaselection India has allocated Rs 80 crore from the IPO proceeds towards the partial repayment or prepayment of debt. As of July 2026, the company had outstanding borrowings of Rs 263.8 crore. An additional Rs 50.61 crore is earmarked for capital expenditure, including the purchase of plant and machinery at its existing manufacturing facility in Rajasthan. The remaining proceeds will be utilised for general corporate purposes.
Ahead of the public issue, the company raised Rs 42.47 crore from anchor investors by allotting 42.9 lakh shares at the upper end of the price band. Astorne Capital was the largest anchor investor, acquiring 22.96 lakh shares for approximately Rs 22.7 crore. India Max Investment Fund and Lords Multigrowth Fund each acquired 9.96 lakh shares for around Rs 9.86 crore.
Company Profile
Sonaselection India is a textile manufacturer based in Bhilwara, Rajasthan. Incorporated in February 2022, the company operates as an integrated fabric manufacturing and processing entity. It manufactures 100% cotton fabric, cotton lycra or stretch fabric, cotton blends, and polyester blends. The company's manufacturing facility has an installed processing capacity of 82.44 million metres per annum.
Choice Capital Advisors served as the book-running lead manager for the IPO, while KFin Technologies acted as the registrar to the issue.