Sonaselection IPO Day 2: Subscribed 0.88x; QIB surges 318% to 0.46x
- Sonaselection IPO subscription stands at 0.88x on Day 2.
- QIB demand surged 318% to 0.46x from 0.11x.
- Retail subscription increased to 1.27x.
- Issue price band is ₹94.00000 - ₹99.00000.
- IPO 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 sharply in the afternoon session on Day 2. The most significant shift occurred in the final hour, with QIBs adding substantial volume. Retail demand also saw consistent growth throughout the trading hours.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.11x | 0.36x | 0.97x | 0.57x |
| 12:15 | 0.11x | 0.41x | 1.03x | 0.61x |
| 13:15 | 0.11x | 0.55x | 1.42x | 0.82x |
| 14:15 | 0.11x | 0.57x | 1.47x | 0.86x |
| 15:15 | 0.11x | 0.81x | 2.25x | 1.28x |
| 16:15 | 0.46x | 0.56x | 1.21x | 0.83x |
| 17:15 | 0.46x | 0.61x | 1.27x | 0.88x |
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 late-day surge in QIB demand on Day 2 indicate a potential oversubscription by the close of Day 4, or is institutional interest likely to plateau?
How might Sonaselection's high debt-to-equity ratio and negative operating cash flows influence institutional investors' final allocation decisions?
Given the geographic concentration risk in Rajasthan, how could regional supply chain disruptions impact the company's future revenue stability post-IPO?
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