Sonaselection India IPO Analysis: Should You Apply? GMP, Review & Details

Sonaselection India is a MAINBOARD IPO in the Other Textile Products sector. The issue price band is ₹94.0–₹99.0 per share. Issue size is ₹141.57 crore.

Sonaselection India IPO — Key Details

Company Overview

Sonaselection India Limited, incorporated in February 2022, is an integrated fabric manufacturing and processing company. It specializes in producing value-added products, including 100% cotton fabric, cotton lycra, cotton blends, and polyester blends. The company focuses on converting raw textiles into high-quality finished fabrics, ensuring a diversified product portfolio and maintaining consistent quality. With a flexible workforce model, Sonaselection optimizes manufacturing efficiency and scales production based on demand. As of October 31, 2025, the company employed 844 people.

Financial Performance

Revenue was ₹121.31 Cr in 31 Mar 2024, rising to ₹316.47 Cr by 31 Mar 2025, and further increasing to ₹517.60 Cr by 31 Mar 2026. This shows a strong growth trend in total income over the periods. Profit After Tax was ₹13.10 Cr in 31 Mar 2024, increasing to ₹18.56 Cr by 31 Mar 2025, and further rising to ₹34.02 Cr by 31 Mar 2026. This indicates a positive growth trajectory in profitability.

Objects of the Issue

The Company proposes to utilize the Net Proceeds from the Issue towards the following objects: 1. Repayment and/or pre-payment of certain borrowings (₹80.00 Cr), 2. Funding of capital expenditure for purchasing plant and machinery at its existing manufacturing facility (₹50.61 Cr), 3. General corporate purposes.

Strengths & Weaknesses

Strengths

The company has a strategically located manufacturing facility equipped with modern technologies. Its integrated business model combines manufacturing and job work activities, and it has strong relationships with customers, resulting in a high retention rate.

Understanding Grey Market Premium (GMP)

The Grey Market Premium (GMP) refers to the unofficial market where shares of an IPO are traded before they are listed on the stock exchange. A positive GMP indicates that the shares are expected to list at a higher price than the issue price, while a negative GMP suggests the opposite. However, GMP is not a guaranteed indicator of future performance.

Subscription Status

As of 21st Sep 2026, the IPO was subscribed 2.01 times overall, with different categories showing varied interest: QIBs subscribed 1.16 times, NIIs 2.0 times, and Retail investors 2.5 times.

Peer Comparison

• Nitin Spinners Limited: P/E (x) 18.22
• Sangam (India) Limited: P/E (x) 37.29
• Vishal Fabrics Limited: P/E (x) 12.23

IPO Timeline

The IPO opens on 17th September 2026 and closes on 21st September 2026. Allotment of shares will be done on 22nd September 2026, with the listing expected on 24th September 2026.

Should You Apply for Sonaselection India IPO?

Investors comfortable with short-term volatility and a long-term horizon typically weigh IPOs like this against the company's growth potential, market position, and financial health.

Investors who prefer stable, established companies with predictable earnings may want to avoid this IPO, as it is a relatively new entrant in the textile sector.

This is general risk-profile education, not a personal recommendation to apply or avoid this specific IPO — TopFund is not a SEBI-registered investment adviser.

Listing Day Risks

Listing gains refer to the potential profit an investor can make if the stock price rises on its first day of trading compared to the issue price. However, investing in IPOs carries risks, including market volatility and the company's performance post-listing, which can affect the stock price.

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Disclaimer: This is educational content, not investment advice. GMP is an unofficial grey-market indicator, unregulated and never guaranteed. TopFund is not a SEBI-registered investment adviser — please do your own research or consult a qualified adviser before applying to any IPO.