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Sonaselection India Ltd IPO
Sonaselection India Ltd
₹14,100 /150 sharesMinimum investment
IPO details
Subscription rate
Data will be available soon
Schedule
17 Sep 2026
IPO open date
21 Sep 2026
IPO close date
22 Sep 2026
Allotment date
22 Sep 2026
Funds unblock or debit
24 Sep 2026
Tentative listing date
About
Founded in
2022
MD/CEO
Mr Harshil Nuwal
Parent organisation
Sonaselection India Ltd
Sonaselection Limited Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company operates a manufacturing facility in Bhilwara, Rajasthan, with an installed processing capacity of 82.44 million metres per annum. It claims to have machinery including stenter, merceriser, washing range, sanforiser, singeing, microsand suiding and cloth pressing machines, with several machines integrated with digital monitoring tools.
The company claims to have an in-house quality assurance laboratory equipped with Titans Universal Strength Tester, Elmatear 1555 Intelligent Digital Tear Tester, and an Auto Colour Dispenser. These are used for testing and quality control during fabric processing.
The company combines in-house fabric manufacturing with job-work processing. Manufacturing contributed 81.50% of revenue from operations in FY26, compared with 69.88% in FY25 and 11.28% in FY24, while capacity utilisation stood at 82.71% in FY26.
The company had 132 customers with whom it had maintained an ongoing relationship for at least three reporting periods. These customers contributed Rs 104.13 crore, or 20.14% of revenue from operations, in FY26, Rs 108.38 crore (34.30%) in FY25, and Rs 110.98 crore (91.73%) in FY24.
The company recorded growth in revenue and profitability between FY24 and FY26. Revenue from operations increased from Rs 120.98 crore in FY24 to Rs 315.95 crore in FY25 and Rs 516.95 crore in FY26, while PAT increased from Rs 13.09 crore to Rs 18.56 crore and Rs 34.02 crore, respectively.
The company’s manufacturing facility and registered office are located in Rajasthan, which also accounted for Rs 192.88 crore (37.31%), Rs 159.46 crore (50.47%), and Rs 115.31 crore (95.31%) of its revenue from operations in FY26, FY25, and FY24, respectively. Any adverse political, social, regulatory, or other regional developments in Rajasthan could disrupt its production, procurement, and sales, adversely affecting its business and financial condition.
The company operates a single manufacturing facility in Bhilwara, Rajasthan, and does not have an alternate or backup manufacturing facility. Any equipment failure, power interruption, industrial accident, labour unrest, natural disaster or planned or unplanned shutdown at the facility could disrupt production and customer deliveries.
The company recorded negative cash flows from operating activities of Rs 10.99 crore in FY26 and Rs 14.18 crore in FY25, primarily due to increased trade receivables and inventory. It also recorded negative cash flows from investing activities of Rs 20.00 crore, Rs 50.42 crore, and Rs 108.12 crore in FY26, FY25, and FY24, respectively, mainly due to additions to tangible fixed assets and capital work in progress. If negative cash flows continue, the company may face challenges in meeting working capital requirements, servicing debt, and funding future investments.
As of the date of the Red Herring Prospectus, the company, its subsidiary, promoters, directors, KMPs, and SMPs are involved in pending tax, civil, and criminal proceedings before various courts, tribunals, and appellate authorities. Any adverse outcome, particularly in tax proceedings, could result in payment of disputed amounts along with interest and penalties, additional tax liabilities, and adverse effects on its business, financial condition, cash flows and results of operations.
The company’s top 10 suppliers accounted for Rs 211.41 crore (58.87%), Rs 212.45 crore (80.74%), and Rs 40.74 crore (77.52%) of total purchases in FY26, FY25, and FY24, respectively, with yarn and greige fabric being its primary raw materials. As the company has not entered into contracts with its suppliers, any delay, non-performance, quality issues, or inability to procure replacement supplies at comparable prices and within required timelines could disrupt production, increase costs, and hurt its business and financial performance.
The company has a limited operating history, which may make it difficult to assess its future performance. The company was incorporated in 2022 and subsequently acquired an established textile processing unit, while its own cotton fabric processing plant commenced operations only in July 2024. Its relatively short operating history may make it difficult to assess the sustainability of its recent growth and its ability to maintain or expand its business, profitability, and cash flows in the future.
The company’s top 10 customers contributed Rs 152.24 crore (29.45%), Rs 119.98 crore (37.98%), and Rs 58.25 crore (48.15%) of revenue from operations in FY26, FY25, and FY24, respectively. The company primarily operates through individual purchase orders and does not have long-term contracts with customers. So the loss of a key customer, reduction in orders, changes in customer requirements, or migration to competitors could adversely affect its revenues, profitability, cash flows and financial condition.
As of FY26, the company had contingent liabilities and commitments totalling Rs 20.00 crore, equivalent to 19.21% of its net worth. If any of these liabilities materialise, the company may be required to make payments, which could result in its financials taking a hit.
As of July 31, 2026, the company and its subsidiary had total outstanding indebtedness of Rs 283.62 crore. Higher debt obligations could increase interest and repayment requirements and may adversely affect the company’s liquidity and financial condition.
High trade receivables could put pressure on the company’s cash flows. Trade receivables stood at Rs 103.70 crore as of FY26, up from Rs 69.69 crore in FY25 and Rs 13.9 crore in FY24, indicating a significant increase in amounts outstanding from customers. Delays in collection or non-recovery of receivables could adversely affect the company’s liquidity, working capital, and cash flows.
Application details
For Sonaselection Limited IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹94 - ₹99 | Upto ₹2 Lakhs | 150 |
| High Networth Individual | ₹94 - ₹99 | ₹2 - ₹5 Lakhs | 150 |