Sonaselection
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Grey market premium
Unofficial and indicative — not a forecast
Day-wise premium · 5 observations
| Date | GMP | % | Sauda | Est. listing | Gain / lot |
|---|---|---|---|---|---|
| 13 Sept 2026 | ₹0 | 0.00% | ₹0 | ₹99 | ₹0 |
| 12 Sept 2026 | ₹0 | 0.00% | ₹0 | ₹99 | ₹0 |
| 11 Sept 2026 | ₹0 | 0.00% | ₹0 | ₹99 | ₹0 |
| 10 Sept 2026 | ₹0 | 0.00% | ₹0 | ₹99 | ₹0 |
| 09 Sept 2026 | ₹0 | — | — | — | ₹0 |
Gain per lot assumes the premium holds to listing and that the application is allotted — allotment in an oversubscribed issue is a lottery, so it is indicative, not expected. Sauda is the rate paid for a submitted application itself.
Issue details
- IPO date
- 17 Sept 2026 – 21 Sept 2026
- Listing date
- 24 Sept 2026
- Face value
- ₹10 per share
- Price band
- ₹94 – ₹99
- Lot size
- 150 shares
- Sale type
- Fresh capital
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹142 Cr
- Fresh issue
- ₹142 Cr 1,43,00,000 shares
- Offer for sale
- ₹0 Cr 0 shares
- Market cap at offer price
- ₹563 Cr
- Promoter holding
- 86.21% → 64.52% pre-issue → post-issue
- ISIN
- INE0LLZ01011
- CIN
- U17299RJ2022PLC079631
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Choice Capital Advisors Pvt.Ltd.
- Registered office
- 18th K M Stone, Chittorgarh Road, Hamirgarh, Bhilwara- 311025, Rajasthan, India
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| QIB | 0 | — | — |
| Anchor investor · within QIB | 0 | — | — |
| NII (HNI) | 0 | — | — |
| bNII > ₹10L · within NII | 0 | — | — |
| sNII < ₹10L · within NII | 0 | — | — |
| Retail (RII) | 0 | — | — |
| Employee | 0 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 150 shares per lot, in multiples, at ₹99
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 150 | ₹14,850 |
| Retail (max) | 13 | 1,950 | ₹1,93,050 |
| S-HNI (min) | 14 | 2,100 | ₹2,07,900 |
| S-HNI (max) | 67 | 10,050 | ₹9,94,950 |
| B-HNI (min) | 68 | 10,200 | ₹10,09,800 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
₹99 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.00 | 5.99 |
| P/E (×) | 12.38 | 16.53 |
| Price to book (×) | 4.00 | — |
| Market cap | — | ₹563 Cr |
Key performance indicators
Latest reported period, consolidated
- Return on net worth
- 39.05%
- ROCE
- 24.00%
- Debt / equity
- 2.48
- PAT margin
- 6.58%
- EBITDA margin
- 16.40%
- NAV per share
- ₹24.78
- Price to book
- 4.00
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
Company financials
Consolidated ·₹ crore unless a row shows % or ×, as reported in the offer document
| Period ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profit and loss | |||
| Total income | 517.6 | 316.47 | 121.31 |
| Revenue from operations | 516.95 | 315.95 | 120.98 |
| Other income | 0.65 | 0.51 | 0.33 |
| Total expenses | 469.54 | 290.39 | 104.37 |
| Operating profit | 48.06 | 26.08 | 16.94 |
| Operating margin | 9.29% | 8.24% | 13.96% |
| Profit before tax | 48.05 | 26.08 | 16.95 |
| Profit after tax | 34.02 | 18.56 | 13.09 |
| PAT margin | 6.57% | 5.86% | 10.79% |
| Balance sheet | |||
| Total assets | 474.99 | 374.77 | 203.5 |
| Current assets | 289.98 | 193.83 | 54.87 |
| Current liabilities | 227.23 | 159.72 | 44.73 |
| Total liabilities | 370.82 | 304.7 | 164.61 |
| Net worth | 104.16 | 70.07 | 38.88 |
| Current ratio | 1.28× | 1.21× | 1.23× |
| Return on equity | 32.66% | 26.49% | 33.67% |
| Cash flow | |||
| Operating cash flow | -10.99 | -14.18 | 17.61 |
| Investing cash flow | -20 | -50.42 | -108.12 |
| Financing cash flow | 33.15 | 60.67 | 94.65 |
| Net cash flow | 2.17 | -3.93 | 4.14 |
Objects of the issue
Stated use of the net proceeds— open a row for the issuer's full explanation
1 Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company from banks ₹80 Cr
The company intends to utilize funds towards repayment/prepayment of all or a portion of certain borrowings including accrued interest thereon. The aggregate outstanding borrowings from banks was ₹2,638.43 million as on July 31, 2026.
2 Funding of capital expenditure towards purchase of plant and machineries at the existing Manufacturing Facility ₹50.61 Cr
The company proposes to invest in procurement of plant and machineries at its existing facility located at 18th K M Stone, Chittorgarh Road, Hamirgarh, Bhilwara- 311025 Rajasthan, India to enhance operational efficiency, product quality, and process optimization.
3 General Corporate purposes —
The company proposes to deploy funds towards general corporate purposes including funding strategic initiatives, growth opportunities, capital expenditure, working capital requirements, strengthening marketing capabilities and brand building exercises, subject to not exceeding 25% of Gross Proceeds.
1 of 3 objects carry no stated amount — typically general corporate purposes, funded from whatever remains — so the total above is the quantified portion only, not the whole issue.
About Sonaselection
The company is an integrated fabric manufacturing and processing company engaged in the production of value-added products. The company specializes in manufacturing 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends, polyester blends, and processing of fabric including 100% cotton, cotton blends, polyester-viscose (P/V) and polyester fabric. The company operates through its Manufacturing Facility located in Bhilwara, Rajasthan, with an installed processing capacity of 82.44 million meters per annum and combines in-house manufacturing with job-work processing activities.
Management
Harshil Nuwal
MD
Uma Nuwal
CEO
Strengths
As stated in the offer document
Strategically located Manufacturing Facility with modern technologies to support product portfolio
The company operates through its Manufacturing Facility located in Bhilwara, Rajasthan, recognized as the 'Textile City' or 'Manchester City of Rajasthan'. The facility is equipped with advanced machinery sourced from reputed manufacturers and includes stenter, merceriser, washing range, sanforiser, singeing, microsand suiding machine, KD jaguar and cloth pressing machine.
Integrated business model combining manufacturing and job work activities
The company operates an integrated business model that combines in-house manufacturing with job-work processing, enabling operational flexibility, strengthened quality control, and optimized utilization of installed capacity. During Fiscal 2026, Fiscal 2025 and Fiscal 2024, capacity utilization stood at 82.71%, 78.24% and 89.50%, respectively.
Strong standing relationships with customers with high retention rate
The company catered to 909, 417 and 191 customers during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. There were 132 customers who maintained ongoing relationships for at least 3 reporting periods, contributing ₹1,041.33 million, ₹1,083.77 million and ₹1,109.78 million during respective fiscals.
Experienced Promoters supported by professional management team with domain knowledge
The company is led by Promoters with extensive textile industry experience - Subhash Chandra Nuwal (30+ years), Harshil Nuwal (14+ years), and Deepank Bhandari (11+ years). The team is supported by Key Managerial Personnel including Rajnikant Saraswat (39+ years experience) and Ajay Jain (24+ years experience).
Healthy Track Record and Steady Growth
The company demonstrated consistent growth with revenue from operations increasing by CAGR of 106.71% from Fiscal 2024 to Fiscal 2026. EBITDA and profitability increased at CAGR of 72.51% and 61.19% respectively during the same period.
Risk factors
As stated in the offer document
Geographic Concentration Risk in Rajasthan
The company operates from a single manufacturing facility in Rajasthan and derives 37.31%, 50.47% and 95.31% of revenue from this state for Fiscals 2026, 2025 and 2024 respectively. Additionally, 96.01%, 98.36% and 96.26% of procurement is concentrated in Rajasthan, exposing the company to significant regional disruption risks.
Single Manufacturing Facility Dependency
The company operates only one manufacturing facility in Bhilwara, Rajasthan with no alternate or backup facilities. Any slowdown, shutdown or disruption at this facility could significantly impair the company's ability to meet customer demand and fulfill contractual obligations.
Negative Cash Flows from Operations
The company recorded negative operating cash flows of ₹109.89 million and ₹141.77 million in Fiscals 2026 and 2025 respectively. Sustained negative cash flows may limit the company's ability to meet operating expenses, service debt, and fund working capital requirements.
High Debt-to-Equity Ratio
The company's debt-equity ratio was 2.48, 2.96 and 3.72 times for Fiscals 2026, 2025 and 2024 respectively. This high leverage exposes the company to increased interest payment obligations, reduced financial flexibility, and potential difficulties in obtaining additional financing on favorable terms.
Outstanding Bank Borrowings with Restrictive Covenants
As of July 31, 2026, ₹2,638.43 million was outstanding towards bank loans with restrictive covenants requiring lender consents for various corporate activities. Any breach could lead to acceleration of repayment obligations, cross defaults, or termination of financing agreements.
Customer Concentration Risk
The company's top 10 customers account for 29.45%, 37.98% and 48.15% of revenue for Fiscals 2026, 2025 and 2024 respectively. The company operates primarily through individual purchase orders without long-term contracts, exposing it to significant customer attrition risks.
Supplier Concentration and Related Party Dependence
The company's top 10 suppliers constitute 58.87%, 80.74% and 77.52% of procurement for Fiscals 2026, 2025 and 2024 respectively. Additionally, the company derives significant procurement from related party Sona Style Limited (₹249.10 million in Fiscal 2026), creating supplier concentration and conflict of interest risks.
Peer comparison
The comparable listed companies named in the offer document, as on 31 Mar 2026
| Company | EPS | NAV | P/E | P/BV | RoNW |
|---|---|---|---|---|---|
| Sonaselection India Ltd. THIS ISSUE | 8.09 | 24.78 | 16.53, computed at the offer price | 4.00, computed at the offer price | 39.05% |
| 1.52 | 26.12 | 12.23 | — | 6.33% | |
| 16.44 | 211.85 | 37.29 | — | 8.02% | |
| 31.58 | 261.60 | 18.22 | — | 12.77% |
Blank cells are figures the offer document does not publish. This issue is unlisted, so it has no market price and the document publishes no multiple for it — its P/E and P/BV here are computed at the offer price, on the post-issue share count, and are comparable to a listed peer's.