Sonaselection IPO Day 3: Subscribed 1.41x; Retail hits 1.98x; NII bHNI surges
- Sonaselection IPO is subscribed 1.41x on Day 3, closing today.
- Retail demand leads at 1.98x, up from 1.70x earlier in the day.
- NII (bHNI) surged 27.4% intraday to reach 1.21x.
- QIB participation remained static at 0.46x throughout the issue.
- Issue size ranges from ₹14,100 to ₹5,00,000 with a price band of ₹94-₹99.
*this image is generated using AI for illustrative purposes only.
Sonaselection IPO is subscribed 1.41x on Day 3, with retail investors leading the charge at 1.98x. The issue closes today as non-institutional buyers push overall oversubscription higher, with NII (bHNI) surging to 1.21x.
Subscription Status
The Sonaselection IPO saw steady accumulation across all categories over the three-day window. While Qualified Institutional Buyers (QIB) remained static at 0.46x throughout the issue period, retail and non-institutional segments showed consistent growth. By the close of Day 3, the total subscription stood at 1.41x, marking a fully subscribed issue.
| 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 | 0.46x | 1.21x | 1.41x | 1.98x | 1.41x |
Category-wise Breakdown
Retail investors emerged as the primary drivers of demand, reaching 1.98x by the end of Day 3. Non-Institutional Investors (NII) also showed robust interest, with business HNI (bHNI) crossing full subscription at 1.21x and small HNI (sHNI) standing at 1.41x. In contrast, QIB participation remained subdued at 0.46x, indicating limited institutional appetite during this phase.
Intra-day Timeline
The final snapshot on Day 3 reflected stable numbers in the closing hours, with significant jumps in NII and Retail segments during the morning session.
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.46x | 0.95x | 1.70x | 1.19x |
| 12:15 | 0.46x | 1.08x | 1.85x | 1.30x |
| 13:15 | 0.46x | 1.21x | 1.98x | 1.41x |
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.
How might the significant disparity between strong retail demand and weak QIB participation impact Sonaselection's listing price and initial trading volatility?
Given the company's high debt-to-equity ratio of 2.48x, will the proceeds from this IPO be sufficient to meaningfully deleverage the balance sheet in the near term?
What are the potential risks associated with Sonaselection's negative operating cash flows despite reported revenue growth, and how might this affect future dividend policies?
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