Sonaselection IPO Day 1: Subscribed 0.29x; NII bHNI jumps 257%
- Sonaselection IPO subscribed 0.29x on Day 1
- NII (bHNI) demand jumped 257.1% intraday to 0.25x
- Retail investors contributed 0.47x of the total subscription
- QIB entry recorded at 0.11x by end of day
- Issue remains open until 21-09-2026
*this image is generated using AI for illustrative purposes only.
Sonaselection IPO is subscribed 0.29 times on Day 1, with Non-Institutional Buyers (bHNI) jumping 257.1% intra-day. Retail investors contributed 0.47x of the total demand, marking the strongest category-wise participation as the issue opens for subscription.
Subscription Status
The Sonaselection IPO saw accelerated participation during trading hours on its first day. The total subscription stands at 0.29x against the available offer size by the end of the day. Non-Institutional Buyers (bHNI) emerged as the most active category, surging from 0.07x to 0.25x. Retail investors also increased their stake significantly, moving from 0.25x to 0.47x. Qualified Institutional Buyers (QIB) entered the issue with 0.11x, while Non-Institutional Buyers (sHNI) contributed 0.25x.
Intra-day Timeline
Subscription figures picked up pace after midday on Day 1. The total subscription jumped 123.1% from 0.13x at 11:15 AM to 0.29x by 1:15 PM. NII (bHNI) demand more than tripled 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 |
Category-wise Breakdown
- Qualified Institutional Buyers (QIB): 0.11x
- Non-Institutional Buyers (bHNI): 0.25x
- Non-Institutional Buyers (sHNI): 0.25x
- Retail: 0.47x
- Employees: 0.00x
Offer Details
- Price Band: ₹94.00000 - ₹99.00000
- Issue Size: ₹14,100 - ₹5,00,000 lakh
- Minimum Bid Quantity: 150 shares
- Issue Open Date: 17-09-2026
- Issue Close Date: 21-09-2026
About the Company
Sonaselection is an integrated fabric manufacturing and processing company specializing in value-added products. Based in Bhilwara, Rajasthan, known as the 'Textile City', the company produces 100% cotton fabric, cotton lycra, cotton blends, and polyester blends. It operates through a single manufacturing facility with an installed processing capacity of 82.44 million meters per annum, combining in-house manufacturing with job-work processing activities.
Financial Highlights
The company has demonstrated consistent growth in recent years. Below are the consolidated financial highlights for the last three fiscal years:
| Particulars | FY 2024 (₹ crores) | FY 2025 (₹ crores) | FY 2026 (₹ crores) |
|---|---|---|---|
| Revenue from Operations | 120.98 | 315.95 | 516.95 |
| Total Revenue | 121.31 | 316.47 | 517.60 |
| Profit Before Tax | 16.95 | 26.08 | 48.05 |
| Total Profit | 13.09 | 18.56 | 34.02 |
| Total Assets | 203.50 | 374.77 | 474.99 |
| Total Equity | 38.88 | 70.07 | 104.16 |
Objects of the Issue
The company intends to utilize the proceeds from the IPO for the following purposes:
- Repayment of Borrowings: ₹80.00 crore towards repayment/prepayment of certain borrowings availed from banks.
- Capital Expenditure: ₹50.61 crore for procurement of plant and machinery at its existing facility in Bhilwara to enhance operational efficiency and product quality.
- General Corporate Purposes: Deployment towards strategic initiatives, growth opportunities, working capital requirements, and brand building, subject to not exceeding 25% of Gross Proceeds.
Risk Factors
Investors should note the following material risks associated with the company:
- Geographic Concentration: Significant revenue and procurement concentration in Rajasthan exposes the company to regional disruption risks.
- Single Facility Dependency: Operations rely on a single manufacturing facility in Bhilwara with no alternate backup, posing operational continuity risks.
- Negative Cash Flows: The company recorded negative operating cash flows in Fiscals 2026 and 2025, which may impact liquidity and debt servicing capabilities.
- High Leverage: A high debt-to-equity ratio increases interest obligations and reduces financial flexibility.
How might the significant negative operating cash flows in FY 2025 and 2026 impact Sonaselection's ability to service debt post-IPO, given the high leverage risk?
What strategies does management plan to implement to mitigate the operational continuity risks associated with relying on a single manufacturing facility in Bhilwara?
Will the allocation of ₹80 crore towards debt repayment significantly improve the company's interest coverage ratio and financial flexibility in the coming fiscal years?
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