Sonaselection IPO
IPO Open Now
₹14,100 / 150 shares
Price Range: ₹94 – ₹99 per share
Bidding Dates17 Sept, 2026 – 21 Sept, 2026
Min Investment₹14,100
Lot Size150
Issue Size₹141.57 Cr.
IPO Overview
IPO Timeline
IPO Offer Start17 Sept, 2026
IPO Offer Ends21 Sept, 2026
Allotment Finalisation22 Sept, 2026
Refund Initiation23 Sept, 2026
Listing of Shares24 Sept, 2026
IPO Analysis
Strengths
- 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.
- 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.
- 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.
- 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).
- 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.
Risks
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
Objects of the Issue
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.
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.
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.
Yearly Financial Results
Consolidated — ₹ Crores
| Annual Financials | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Revenue | 120.98 | 315.95 | 516.95 |
| Expenses | 104.37 | 290.39 | 469.54 |
| Other Income | 0.33 | 0.51 | 0.65 |
| Total Revenue | 121.31 | 316.47 | 517.60 |
| Profit Before Tax | 16.95 | 26.08 | 48.05 |
| Net Profit | 13.09 | 18.56 | 34.02 |
Balance Sheet
Consolidated — ₹ Crores
| Balance Sheet | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Total Assets | 203.50 | 374.77 | 474.99 |
| Current Assets | 54.87 | 193.83 | 289.98 |
| Fixed Assets | 148.62 | 180.94 | 185.00 |
| Total Equity & Liabilities | 203.50 | 374.77 | 474.99 |
| Total Liabilities | 164.61 | 304.70 | 370.82 |
| Current Liabilities | 44.73 | 159.72 | 227.23 |
| Non Current Liabilities | 119.88 | 144.98 | 143.59 |
| Total Equity | 38.88 | 70.07 | 104.16 |
Cash Flow
Consolidated — ₹ Crores
| Cash Flow | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Net Cash Flow | 4.14 | -3.93 | 2.17 |
| Investing Activities | -108.12 | -50.42 | -20.00 |
| Operating Activities | 17.61 | -14.18 | -10.99 |
| Financing Activities | 94.65 | 60.67 | 33.15 |
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.
Documents
Source: DRHP
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