Sonaselection

Sonaselection IPO

IPO Open Now

₹14,100

Bidding Dates 17 Sept, 26 -21 Sept, 26

Min Investment ₹14,100

Lot Size150

Price Range ₹94 – ₹99

Issue Size ₹141.57 Cr.

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DRHP

IPO Timeline

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.

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.

Objectives

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

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

Show % Change

Above figures are in Rs. Crores

Balance Sheet

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

Show % Change

Above figures are in Rs. Crores

Cash Flow

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

Show % Change

Above figures are in Rs. Crores

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...more

Website

www.sonaselection.com

Managing DirectorHarshil Nuwal

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Part of Raise Financial Services

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016 | SEBI Research Analyst Registration No: INH000023357 Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320

Registered Office: Unit No. 2201, 22nd Floor, Gold Medal Avenue, S.V. Road, Beside Patel Petrol Pump, Piramal Nagar, Goregaon West, Mumbai - 400104