Shares of Sonaselection India made a strong market debut on Thursday (September 24, 2026), listing at ₹102 per share on BSE, representing a 3.03% premium over the IPO issue price of ₹99. The stock has since jumped to ₹107.09 at 10:16 IST, representing an 8.17% premium over the issue price. On the NSE, the stock debuted at ₹102.31 per share, also showing strong momentum. Following the listing, Sonaselection India's market capitalisation stood at around ₹579.65 crore. According to Business Standard, over 2.38 lakh shares were traded on the BSE counter, indicating robust investor interest. The grey market premium currently stood at zero ahead of the listing, indicating expectations of a flat listing at the issue price.
The subscription pattern varied significantly across investor categories, with the retail individual investors showing the strongest demand. The retail portion was subscribed 2.50 times, while the non-institutional investors (NIIs) portion received 1.99 times subscription. The qualified institutional buyers (QIBs) portion showed modest interest at 1.16 times subscription, with QIB investors placing bids for 28.60 lakh shares against 28.60 lakh shares reserved. The Rs 141.6-crore IPO was subscribed 2.01 times during the three-day bidding period from September 17 to September 21, as it received bids for 2,01,04,050 shares against 1,00,10,000 shares on offer. The issue comprised entirely a fresh issue of 1.43 crore equity shares and carried a price band of ₹94-99 per share. Choice Capital Advisors worked as the book-running lead manager of the issue, and Kfin Technologies served as the registrar for the IPO.
The company demonstrated remarkable financial growth during FY26, with total income increasing to ₹517.60 crore in FY26 from ₹316.47 crore in FY25, reflecting a 64% growth. Profit after tax (PAT) increased 83% year-on-year to ₹34.02 crore in FY26, compared with ₹18.56 crore in FY25. EBITDA also increased to ₹84.77 crore from ₹58.12 crore during the same period. As of March 31, 2026, the company's assets stood at ₹474.99 crore compared with ₹374.77 crore a year earlier, while net worth increased to ₹104.16 crore from ₹70.07 crore. The company transitioned from a job-work processing model to a manufacturing-led model after acquiring a textile processing unit in 2022 and commissioning a cotton fabric processing plant in July 2024. The company reported a consolidated net profit of ₹34.02 crore and sales of ₹516.95 crore for the twelve months ended on 31 March 2026.
The Rs 141.57 crore IPO proceeds will be utilized strategically with Rs 80.0 crore allocated towards repaying certain borrowings and Rs 50.61 crore towards funding capital expenditure for purchase of plant and machinery at the existing manufacturing facility in Rajasthan. The balance amount will be used for general corporate purposes. The company operates a manufacturing facility spread across approximately 49,540 sq. metres with an installed processing capacity of 82.44 million metres per annum, undertaking processes such as bleaching, dyeing and finishing. Capacity utilization stood at 82.71% in FY2026, with the CAPEX primarily to modernize the plant and there will not be any increment in the overall production capacity of the company pursuant to the installation of the proposed machinery. The company also diversified into readymade garments through its subsidiary incorporated in July 2025.
Market analysts provided mixed assessments of Sonaselection India's debut performance. Shivani Nyati, head of wealth at Swastika Investmart, noted that Sonaselection India made a modest debut, with the post-listing valuation at around 12.24 times FY26 P/E being reasonable. However, she highlighted key risks including declining Ebitda margins, high leverage, single-facility dependence, customer concentration and governance concerns. Her analysis concluded with a Neutral view, recommending that fresh entry can be considered only after monitoring margin stability and deleveraging. For risk management, ₹96–98 can be considered as a stop-loss zone, while a sustained break below ₹96 may indicate further weakness.
