Fabric manufacturing and processing company Sonaselection India is set to launch its maiden public issue on September 17, with the offer remaining open until September 21. According to reports from The Economic Times, the company has fixed a price band of ₹94-99 per equity share for its ₹141.6 crore fresh issue. The anchor book will open for institutional investors on September 16, while the company is likely to finalise IPO share allotment by September 22. Shares are expected to start trading on stock exchanges from September 24 on both BSE and NSE mainboard platforms. As per Kfin Technologies, the company has 876 employees as of March 31, 2026, and operates a single manufacturing facility in Hamirgarh, Bhilwara, with an installed processing capacity of 82.44 million meters per annum. The minimum investment requirement is ₹14,850 at the upper price band, with a minimum bid of 150 shares.
As reported by The Economic Times, the company's fresh issue comprises 1.43 crore equity shares worth ₹141.57 crore at the higher end, with no offer for sale (OFS) component. The IPO will be entirely a fresh issue with no existing shareholders selling their stakes. The proceeds will be utilised for debt payment, purchasing plant and machinery at the company's manufacturing facility, and general corporate purposes. The formal listing of equity shares on BSE and NSE platforms is planned for September 24, 2026. According to Kfin Technologies, the company has 4,25,28,681 pre-issue shares with a face value of ₹10 per share. The company plans to use the IPO proceeds to repay or prepay, in full or in part, certain bank borrowings and purchase plant and machinery for its existing manufacturing facility in Bhilwara, Rajasthan.
According to reports from Moneycontrol, Sonaselection India has demonstrated remarkable financial growth over the last three fiscal years. Revenue from operations grew at a compound annual growth rate (CAGR) of 106.71%, reaching ₹516.95 crore in FY2026 from ₹120.98 crore in FY2024. Net profit more than doubled, climbing from ₹13.10 crores in FY24 to ₹34.02 crores in FY26, with the company achieving an exceptional Return on Net Worth (RoNW) of 39.05% in FY26. The company's EBITDA margin improved from 23.55% in FY24 to 16.40% in FY26, while debt-to-equity ratio improved from 3.72x in FY2024 to 2.48x in FY2026. The company is a Rajasthan-based fabric manufacturer that converts raw textiles into finished fabrics, specialising in 100 percent cotton fabrics, cotton lycra (stretch) fabrics, cotton blends and polyester blends. This growth was propelled by a strategic transition from low-margin job-work processing to direct fabric manufacturing and forward integration into ready-made garments via its subsidiary.
As reported by Moneycontrol, Sonaselection India has significantly expanded its operational footprint and customer base. The company's customer base expanded from 191 in FY2024 to 909 in FY2026, while revenue contribution from Rajasthan declined from 95.31% in FY2024 to 37.31% in FY2026, indicating successful geographic diversification. Incorporated in 2022, the company operates a single manufacturing facility in Hamirgarh, Bhilwara, with an installed processing capacity of 82.44 million meters per annum. In fiscal 2026, the company expanded its operations into the readymade garments segment through its wholly owned subsidiary, Sionnah Enterprises, thereby strengthening vertical integration between fabric manufacturing and downstream garment production. Despite profitability, the company reported negative operating cash flows in FY2025 (₹-14.18 crore) and FY2026 (₹-10.99 crore), driven by growing working capital requirements. Total assets more than doubled, increasing from ₹203.50 crores in FY24 to ₹474.99 crores in FY26, underpinned by heavy capital expenditures commercializing new production lines. The company's current ratio improved from 1.23 in FY24 to 1.28 in FY26, indicating better liquidity management.
As reported by Moneycontrol, according to a CareEdge report, the Indian textile and apparel industry is projected to grow from ₹188 billion in FY26 to ₹350 billion by FY30, registering a CAGR of 16.8 percent, driven by rising domestic and export demand. Choice Capital Advisors is the sole book-running lead manager for the Sonaselection India IPO, while KFin Technologies serves as the registrar. However, investors should note the company's reliance on a single facility in Bhilwara poses concentration risk despite geographic diversification trends, and the company's debt-to-equity ratio improved from 3.72x in FY2024 to 2.48x in FY2026, though it remains elevated. The deployment of ₹80 crore from IPO proceeds aims to aggressively de-leverage the balance sheet, which rose from ₹144.60 crores in FY24 to ₹258.24 crores in FY26. The fabric processing industry remains highly fragmented and capital-intensive, requiring constant modernisation of plant machinery. Backed by advanced processing capabilities, stringent quality systems, and global certifications such as GOTS, GRS, and OEKO-TEX, the company is strategically positioned to capitalise on India's growing textile market and increasing global sourcing shift.
