Sonaselection IPO Day 1: Subscribed 0.46x; Retail leads at 0.76x; NII surges 328%
- Sonaselection IPO subscribed 0.46x on Day 1
- Retail investors lead demand at 0.76x
- NII (bHNI) surges 328% intra-day
- QIB participation stands at 0.11x
- Issue closes on 21-09-2026
*this image is generated using AI for illustrative purposes only.
Sonaselection IPO ended Day 3 with a total subscription of 1.92x. Qualified Institutional Buyers (QIB) surged 152% to 1.16x, while retail investors maintained strong momentum at 2.33x.
Subscription Status
The Sonaselection IPO witnessed a sharp acceleration in demand during the final hours of Day 3. While the issue was already oversubscribed by midday, a sudden spike in QIB applications and continued retail interest pushed the overall subscription from 1.49x to 1.92x in the last two hours. The issue remains fully subscribed across all key categories, with retail and non-institutional segments leading the charge.
| Day | Date | QIB | NII (bHNI) | NII (sHNI) | Retail | Total |
|---|---|---|---|---|---|---|
| Day 1 | 17-09-2026 | 0.11x | 0.30x | 0.20x | 0.76x | 0.46x |
| Day 2 | 18-09-2026 | 0.46x | 0.61x | 0.49x | 1.27x | 0.88x |
| Day 3 | 21-09-2026 | 1.16x | 1.86x | 1.99x | 2.33x | 1.92x |
Category-wise Breakdown
Retail investors remained the dominant force, ending the day at 2.33x. Non-Institutional Investors (NII) also displayed robust participation, with business HNI (bHNI) reaching 1.86x and small HNI (sHNI) at 1.99x. The most notable development was the surge in QIB demand, which rose from 0.46x to 1.16x in the final session, indicating late-stage institutional interest.
Intra-day Timeline
Subscription figures picked up pace after midday on Day 1. The total subscription jumped 253.8% from 0.13x at 11:15 AM to 0.46x by 5:15 PM. NII (bHNI) demand more than quadrupled in the same window, reflecting strong interest from high-net-worth individuals.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 0.07x | 0.25x | 0.13x |
| 12:15 | 0.00x | 0.14x | 0.36x | 0.19x |
| 13:15 | 0.11x | 0.25x | 0.47x | 0.29x |
| 14:15 | 0.11x | 0.26x | 0.55x | 0.33x |
| 15:15 | 0.11x | 0.27x | 0.61x | 0.37x |
| 16:15 | 0.11x | 0.27x | 0.68x | 0.40x |
| 17:15 | 0.11x | 0.30x | 0.76x | 0.46x |
Offer Details
- Price Band: ₹94.00000 - ₹99.00000
- Issue Size: 14100 - 500000
- Min Bid Qty: 150
- Open Date: 2026-09-17
- Close Date: 2026-09-21
About the Company
Sonaselection is an integrated fabric manufacturing and processing company specializing in value-added products. Its portfolio includes 100% cotton fabric, cotton lycra, cotton blends, and polyester blends. The company operates from Bhilwara, Rajasthan, with an installed processing capacity of 82.44 million meters per annum. It combines in-house manufacturing with job-work processing to optimize capacity utilization.
Financial Highlights
Sonaselection reported significant revenue growth over the last three fiscal years. Revenue from operations increased from ₹120.98 crores in FY2024 to ₹516.95 crores in FY2026. Profit after tax also rose from ₹13.09 crores to ₹34.02 crores in the same period.
| Metric (₹ crores) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations | 120.98 | 315.95 | 516.95 |
| Total Profit | 13.09 | 18.56 | 34.02 |
| Total Assets | 203.50 | 374.77 | 474.99 |
Objects of the Issue
- Repayment/pre-payment of certain borrowings: ₹80.00 crores
- Capital expenditure for plant and machinery: ₹50.61 crores
- General corporate purposes
Risk Factors
- Geographic concentration risk in Rajasthan, deriving majority revenue and procurement from the state.
- Dependency on a single manufacturing facility in Bhilwara with no backup sites.
- Negative operating cash flows recorded in Fiscals 2026 and 2025.
- High debt-to-equity ratio, standing at 2.48 times in FY2026.
Will the strong retail demand (0.76x) on Day 1 be sufficient to offset the weak QIB participation and ensure the IPO closes as fully subscribed?
How might the company's negative operating cash flows in FY 2025 and 2026 impact investor sentiment during the remaining days of the subscription window?
Given the high leverage and debt repayment objectives, will the IPO proceeds adequately improve the company's debt-to-equity ratio to a level attractive for long-term institutional investors?
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