Sonaselection India Limited is preparing to enter the Indian primary market with an initial public offering that will give investors exposure to an integrated textile manufacturing and processing business based in Bhilwara, Rajasthan. The company manufactures and processes value-added fabrics used across the apparel and textile industry, with products spanning cotton fabrics, cotton lycra, cotton blends and polyester-based blends.
The company has transformed significantly since its incorporation in 2022. It initially operated primarily as a job-work processor but has progressively shifted toward manufacturing and value-added fabric processing. Its cotton fabric manufacturing facility became operational in July 2024, supporting a substantial increase in manufacturing revenue and overall business scale.
The Sonaselection India IPO is scheduled to open for subscription on September 17, 2026 and close on September 21, 2026. The basis of allotment is expected to be finalised on September 22, followed by refunds and demat credit on September 23. The shares are tentatively scheduled to list on BSE and NSE on September 24, 2026.
Sonaselection India IPO Details
| Particular | Details |
|---|---|
| IPO Name | Sonaselection India IPO |
| IPO Type | Mainboard, Book Built |
| IPO Open Date | September 17, 2026 |
| IPO Close Date | September 21, 2026 |
| Price Band | To be announced |
| Face Value | ₹10 per share |
| Total Issue Size | Up to 1.43 crore shares |
| Fresh Issue | Up to 1.43 crore shares |
| Offer for Sale | Nil |
| Lot Size | To be announced |
| Minimum Investment | To be announced |
| Anchor Bidding | September 16, 2026 |
| Allotment | September 22, 2026 |
| Refund / Demat Credit | September 23, 2026 |
| Tentative Listing | September 24, 2026 |
| Listing | BSE and NSE |
| QIB | 50% |
| NII | 15% |
| Retail | 35% |
| Lead Manager | Choice Capital Advisors |
| Registrar | KFin Technologies |
The IPO is entirely a fresh issue. This means the money raised through the issue will go to Sonaselection India rather than existing shareholders through an OFS. The company proposes to use approximately ₹80 crore toward repayment or prepayment of borrowings and around ₹50.61 crore toward the purchase of plant and machinery at its existing manufacturing facility. The remaining proceeds will be used for general corporate purposes.
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About Sonaselection India
Sonaselection India was incorporated in February 2022 and is headquartered in Bhilwara, Rajasthan, one of India’s important textile manufacturing clusters. The company acquired an established textile processing unit through a slump-sale transaction and subsequently expanded its capabilities from job-work processing into integrated fabric manufacturing.
Its manufacturing facility is spread across approximately 49,540 square metres and has installed processing capacity of around 82.44 million metres per year. The facility includes textile-processing capabilities such as bleaching, dyeing and finishing, allowing the company to produce fabrics according to customer specifications.
The company’s product portfolio includes 100% cotton fabrics, cotton lycra fabrics, cotton blends and polyester or polyester-viscose blends. It also continues to undertake job-work processing for customers, giving it exposure to different stages of the textile value chain.
The company has been investing in modern machinery sourced from countries including Italy, Germany, China, Switzerland and the United Kingdom. This equipment supports its move toward higher-value manufacturing and improved processing capabilities.
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From Job Work to Manufacturing
One of the most important aspects of the Sonaselection India story is the change in its revenue mix.
When the company began operations, job-work processing represented almost the entire business. Manufacturing revenue accounted for only around 2.53% of revenue in FY2023. By FY2025, manufacturing contributed approximately 69.88%, while its contribution reached around 78.21% during the quarter ended June 2025.
This transition is strategically important because manufacturing generally gives the company greater control over product specifications, customer relationships and value addition compared with operating purely as a processing service provider.
The transformation has also coincided with strong revenue growth and increasing operating scale. However, the shift requires substantial capital investment and working capital, which is one reason the company is using IPO proceeds for both debt reduction and additional machinery.
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Sonaselection India IPO Financial Performance
Sonaselection India has reported strong growth in revenue and profitability over the last three financial years.
Revenue from operations increased from approximately ₹120.98 crore in FY2024 to ₹315.95 crore in FY2025 and further to ₹516.95 crore in FY2026. EBITDA increased from ₹28.49 crore in FY2024 to ₹58.12 crore in FY2025 and ₹84.77 crore in FY2026. Profit after tax increased from ₹13.10 crore in FY2024 to ₹18.56 crore in FY2025 and ₹34.02 crore in FY2026.
| Financial Year | Revenue from Operations | EBITDA | PAT |
|---|---|---|---|
| FY24 | ₹120.98 Cr | ₹28.49 Cr | ₹13.10 Cr |
| FY25 | ₹315.95 Cr | ₹58.12 Cr | ₹18.56 Cr |
| FY26 | ₹516.95 Cr | ₹84.77 Cr | ₹34.02 Cr |
The numbers show a significant increase in business scale following the company’s move toward manufacturing. Revenue more than quadrupled between FY2024 and FY2026, while PAT also increased substantially.
The company reported EBITDA of approximately ₹84.77 crore in FY2026, translating into an EBITDA margin of around 16.4% based on revenue from operations. PAT of ₹34.02 crore represented a margin of approximately 6.6%.
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The company’s financial position has also expanded alongside its manufacturing investments. Total assets increased to approximately ₹474.99 crore as of March 31, 2026, while borrowings stood at around ₹258.24 crore according to current IPO data.
Customer Base and Market Position
Sonaselection India has developed relationships with customers across the textile and apparel value chain. Industry reports have identified customers and brands associated with its fabric business, including companies connected with Aditya Birla, Levi’s and Zudio.
The company has also been expanding its geographic revenue base. Rajasthan historically represented the majority of its revenue, but its contribution declined from more than 95% in FY2023 to approximately 50.47% in FY2025, with other states such as Delhi, Maharashtra, Karnataka and West Bengal becoming more meaningful contributors.
This geographical diversification can reduce dependence on one regional market, although the company’s manufacturing operations remain concentrated in its Bhilwara facility.
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How Sonaselection India Will Use IPO Funds
Debt reduction is one of the primary objectives of the IPO.
Approximately ₹80 crore from the fresh issue is proposed to be used for repayment or prepayment of certain borrowings. Another approximately ₹50.61 crore is intended for capital expenditure toward plant and machinery at the company’s existing Bhilwara manufacturing facility.
The debt-reduction component could help strengthen the company’s balance sheet and reduce finance costs. This is particularly relevant because textile manufacturing requires significant working capital and capital investment.
The machinery investment, meanwhile, is aimed at expanding and strengthening manufacturing capabilities. If the additional capacity is effectively utilised, it could allow Sonaselection to increase its share of value-added manufacturing and serve a larger customer base.
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Growth Opportunities for Sonaselection India
The Indian textile industry presents a significant long-term opportunity. Rising domestic apparel consumption, increasing organised retail, export opportunities and global supply-chain diversification can support demand for Indian textile manufacturers.
Sonaselection’s transition from job-work processing to integrated manufacturing positions it to participate in more stages of the textile value chain. Its product portfolio across cotton, stretch fabrics and blended fabrics also allows it to serve different apparel and textile applications.
The company has additionally entered the readymade garment segment through a subsidiary incorporated in 2025. Moving further downstream into garments could provide another avenue for value addition if the new business scales successfully.
The company’s established manufacturing location in Bhilwara is another potential advantage because the region has an established textile ecosystem with access to suppliers, labour and industry infrastructure.
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Sonaselection India IPO GMP
As of September 9, 2026, the IPO’s final price band has not yet been announced. Consequently, there is currently no meaningful valuation-based GMP assessment available.
Once the price band is announced, investors will be able to calculate the company’s implied market capitalisation and valuation multiples. These will be important for comparing Sonaselection with listed textile and fabric manufacturers.
Grey market premium, when available, should be treated only as an unofficial indicator of market sentiment. It is not regulated and does not guarantee the listing price or future performance.
Key Risks for Investors
Customer concentration is one of the important risks. The company’s top ten customers accounted for approximately 37.98% of revenue in FY2025 and 33.80% during the three months ended June 2025. Losing a major customer or experiencing a substantial reduction in orders could therefore affect revenue and cash flows.
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Supplier concentration is another concern. The company’s top ten suppliers accounted for approximately 80.74% of raw-material procurement in FY2025 and 68.92% during the three months ended June 2025. Any disruption in supply or adverse changes in supplier pricing could therefore affect production and profitability.
Raw-material price volatility is particularly relevant for the textile industry. Cotton, yarn, fabrics, dyes and chemicals form a significant portion of production costs. Sharp movements in input prices can pressure margins when manufacturers are unable to immediately pass higher costs on to customers. CRISIL has also highlighted raw-material volatility and intense competition as key constraints for the business.
The company also operates a relatively concentrated manufacturing setup. A significant disruption at its Bhilwara facility could affect production, deliveries and financial performance.
Leverage is another factor to monitor. The company has undertaken significant capital investment as it expanded its manufacturing operations, and the proposed ₹80 crore IPO allocation toward debt reduction demonstrates that reducing borrowings is an important objective of the issue.
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The textile industry is also highly competitive, with relatively low barriers to entry in several segments. Competition can limit pricing power and make sustained margin expansion difficult. CRISIL has specifically noted that the fragmented nature of the textile weaving industry and intense competition can constrain scalability and profitability.
Sonaselection India IPO: What Investors Should Watch
Sonaselection India enters the IPO market after a major transformation in its business model. The company has moved from being primarily a job-work processor toward becoming an integrated fabric manufacturer, with manufacturing contributing the majority of revenue.
The financial performance reflects this expansion. Revenue from operations increased to approximately ₹516.95 crore in FY2026, while EBITDA reached ₹84.77 crore and PAT stood at ₹34.02 crore. The company is also using IPO proceeds for both debt reduction and additional manufacturing equipment.
At the same time, investors need to consider customer and supplier concentration, raw-material volatility, manufacturing concentration, leverage and intense competition in the textile industry.
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The final price band will be particularly important because it will determine the IPO valuation and allow investors to compare Sonaselection with listed textile companies. Until the price band is announced, a complete valuation assessment should be avoided.
The Sonaselection India IPO is scheduled to open on September 17 and close on September 21, 2026, with a tentative listing on September 24. Investors should evaluate the company’s transformation, earnings growth, balance sheet, industry opportunity and final IPO valuation together rather than relying only on the IPO’s growth story.
Disclaimer: This article is for educational and informational purposes only and should not be considered investment advice. IPO investments involve market, business and listing risks. Investors should carefully read the company’s RHP and evaluate their own financial circumstances before making any investment decision. Onetrader is not a SEBI-registered investment adviser.
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