Sonaselection India IPO
Sonaselection India LtdMainboard
This IPO has listed.
- Open date
- 17 Sep 2026
- Close date
- 21 Sep 2026
- Min. Investment
- ₹14,850
- Lot Size
- -
- Fresh Issue
- ₹141.57 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers1.16x
- Non-Institutional Investors2.00x
- Retail-Individual Investors2.50x
- Total2.01x
Schedule
- Completed: IPO open date17 Sep 2026
- Completed: IPO close date21 Sep 2026
- Completed: Allotment date22 Sep 2026
- Completed: Funds unblock or debit23 Sep 2026
- Completed: Tentative listing date24 Sep 2026
About
Promoter shareholding in Sonaselection India Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Harshil Nuwal | 72,59,627 | 17.07% | 72,59,627 | 12.77% |
| Subhash Chandra Nuwal | 0 | 0.00% | 0 | 0.00% |
| Uma Nuwal | 13 | 0.00% | 13 | 0.00% |
| Deepank Bhandari | 1,76,42,335 | 41.48% | 1,76,42,335 | 31.04% |
| Sona Polyspin Private Limited | 1,17,65,000 | 27.66% | 1,17,65,000 | 20.70% |
| Anita Bhandari | 13 | 0.00% | 13 | 0.00% |
| Kailash Bhandari | 13 | 0.00% | 13 | 0.00% |
| Shikha Nuwal | 13 | 0.00% | 13 | 0.00% |
Financials of Sonaselection India IPO
| Key Performance Indicators | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|
| Operating Revenue | - | - | - |
| Other Income | - | - | - |
| Total Income | 120.98 | 315.95 | 516.95 |
| Total Expenses | 104.37 | 290.38 | 469.55 |
| Profit Before Tax | - | - | - |
| Total Profit | 13.10 | 18.56 | 34.02 |
Sonaselection India IPO Strengths & Risks
- Strategically located Manufacturing Facility with modern technologies to support our product portfolio.
- Integrated business model combining manufacturing and job work activities.
- Strong standing relationships with customers with high retention rate.
- Experienced Promoters supported by a professional management team with domain knowledge.
- Healthy Track Record and Steady Growth.
- Risks Relating to the Business: The company's Manufacturing Facility and Registered Office are located in Rajasthan, and a significant portion of its revenue amounting to Rs.1,928.80 million, Rs.1,594.57 million and Rs.1,153.06 million constituting 37.31%, 50.47% and 95.31% of the company's total revenue from operations for Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively is also derived from this state. Further, its procurement from Rajasthan amounted to Rs.3,448.05 million, Rs.2,587.97 million and Rs.505.83 million constituting 96.01%, 98.36% and 96.26% of purchases for the Fiscal 2026, Fiscal 2025 and Fiscal 2024. As a result, the company is exposed to geographic concentration risks that may adversely affect its operations, financial condition, and results of operations.
- Risks Relating to the Business: The Company currently carries out its business operations from a single manufacturing facility located at Bhilwara, Rajasthan. Any slowdown or shutdown of the company's manufacturing operations at its Manufacturing Facility could have an adverse effect on the company's business, financial condition and results of operations.
- Risks Relating to the Business: The company has experienced negative cash flows in the past, and any significant negative cash flows, if occurs, may adversely affect its business, financial condition and growth prospects.
- Risks Relating to the Business: There are outstanding litigations involving the Company, Subsidiary, Promoters, Directors, KMPs and SMPs. An adverse outcome in any of these proceedings may affect its reputation and standing and impact the company's future business and could have a material adverse effect on its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: Its Promoters have sold a portion of their shareholding in the Company's subsequent to the filing of the Draft Red Herring Prospectus, and any further sale or disinvestment of Equity Shares by its Promoters may adversely affect the market price and liquidity of the company's Equity Shares.
- Risks Relating to the Business: The company's Promoters have provided personal property and guarantee as collateral for borrowings availed by the Company.
- Risks Relating to the Business: The company enters into certain related party transactions in the ordinary course of its business and the company cannot assure you that such transactions will not adversely affect its business, results of operations, profitability and margins, cash flows and financial condition.
- Risks Relating to the Business: In the past the company's individual Promoter Deepank Bhandari was subject to disqualification and default for the period commencing from November 01, 2017, till December 1, 2019. He was also associated with entities that have been struck off, which may pose compliance risk and could subject it to adverse regulatory perceptions.
- Risks Relating to the Business: The company's debt-equity ratio as at Fiscals 2026, 2025 and 2024 was 2.48, 2.96 and 3.72 times, respectively. Its high debt-equity ratio may adversely affect its financial condition and results of operations.
- Risks Relating to the Business: There have been instances of irregularities, discrepancies in filings with the Registrar of Companies and other non-compliances under the Companies Act in the past, which may result in penalties and adverse consequences.
- Risks Relating to the Business: The Issue Price of the company's Equity Shares and price-to-earnings(P/E), may not reflect the trading price of its Equity Shares upon listing on the Stock Exchanges subsequent to the Issue and, as a result, you may lose a significant part or all of your investment.
- Risks Relating to the Business: The Company's Promoters and Directors and some of its Group Companies are at present involved and may enters into ventures that may lead to real or potential conflicts of interest with the company's business
- Risks Relating to the Business: The company is subject to stringent quality requirements from its buyers. Any failures to meet prescribed quality specifications may result in product rejections, loss of customer confidence, and reputational damage, which could adversely affect the company's business and results of operations.
- Risks Relating to the Business: The company's Promoter, Shri Subhash Chandra Nuwal, Smt. Uma Nuwal, Shri Harshil Nuwal and one of its senior managerial, Shri Rajnikant Saraswat are parties to a criminal complaint based on FIR No. 05/2015 at Bhopal, Madhya Pradesh. A formal closure on the complaint is pending from the concerned authorities. Any delay in final disposal may requires additional attention of the company's management and have an adverse impact on its reputation.
- Risks Relating to the Business: There have been instances of delay in compliances and discrepancies in e-forms filed with respect to regulatory filings under the Companies Act, 2013 by its in the past. The Company has filed suo moto adjudication applications with the RoC for these delays and discrepancies.
- Risks Relating to the Business: As on July 31, 2026, the Company has availed an aggregate of Rs.197.73 million as unsecured loans which are repayable on demand. Any demand from lenders for repayment of such unsecured loans, may adversely affect its cash flows.
- Risks Relating to the Business: As on July 31, 2026, an aggregate of Rs.2,638.43 million was outstanding towards loans availed from banks under various financing arrangements, which could limit its flexibility in managing the company's business or using its cash and other assets. Further, the company is subject to restrictive covenants under its financing agreements. Any defaults could lead to acceleration of the company's repayment obligations, cross defaults under other financing agreements, termination of one or more of its financing agreements or force the company to sell its assets, which may adversely affect the company's cash flows, business, results of operations and financial condition.
- Risks Relating to the Business: There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on the company's financial condition and cash flows.
- Risks Relating to the Business: The company depends on a certain limited set of suppliers for the supply of primary raw materials. Its procurement of raw materials from the company's top ten suppliers is Rs.2,114.09 million, Rs.2,124.48 million and Rs.407.37 million constituting 58.87%, 80.74% and 77.52% of its overall procurement for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Any loss of suppliers or interruptions in the timely delivery of supplies and services could have an adverse impact on the company's business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company has significant working capital requirements and its inability to meet such working capital requirements may have an adverse effect on the company's results of operations.
- Risks Relating to the Business: A major portion of the company's revenue from operations is dependent upon a limited number of customers, its revenue from the company's top ten customers is Rs.1,522.43 million, Rs.1,199.85 million and Rs.582.51 million constituting 29.45%, 37.98% and 48.15% of its overall revenue from operations for the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively. Loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on the company's business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: The company's insurance coverage, which constituted 119.27%, 90.58% and 106.24% of the net value of assets/insurance coverage on assets as of Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, may not be adequate to protect the company against all potential losses, and could adversely affect its business, financial condition, and results of operations.
- Risks Relating to the Business: The company has contingent liability and commitments of Rs.200.05 million for Fiscal 2026, which is 19.21% of its net worth and the company's financial condition could be adversely affected if any of these contingent liabilities materialises.
- Risks Relating to the Business: Two of the company's Director, namely Harshil Nuwal and Subhash Chandra Nuwal, have an experience of being a director of a public listed company i.e. Sona Processors (India) Limited, which was listed on Delhi Stock Exchange and Jaipur Stock Exchange. Sona Processors (India) Limited was voluntary delisted w.e.f. Wednesday, January 27, 2021, pursuant to SEBI circular SEBI/HO/MRD/DSA/CIR/P/2016/110 dated October 10, 2016, from both the exchanges vide BSE notice dated January 25, 2021. Except Harshil Nuwal and Subhash Chandra Nuwal, none of the Directors of the Company has experience of being a director of a public listed company.
- Risks Relating to the Business: Some of the members of the company's Promoter Group have not consented to the inclusion of, nor have they provided, information or any confirmations or undertakings pertaining to themselves or the entities in which they hold interest, which are required to be disclosed in relation to Promoter Group under the SEBI ICDR Regulations in this Red Herring Prospectus. The disclosures relating to these members of the Promoter Group have been included in this Red Herring Prospectus based on information available in public domain. Accordingly, the company cannot assure you that the disclosures relating to such members of its Promoter Group are accurate, complete, or updated. Further, details in relation to Connected Entities which may qualify as a member of the company's Promoter Group have not been disclosed in this Red Herring Prospectus.
- Risks Relating to the Business: Under-utilisation of the company's manufacturing capacity and an inability to effectively utilize its manufacturing capacity could have an adverse effect on the company's business, future prospects and future financial performance.
- Risks Relating to the Business: The company's manufacturing business is dependent on the availability and pricing of yarn / greige fabric as a key raw material and any fluctuations in supply or cost, and the working capital required to procure and store the same, may adversely affect its manufacturing operations, profitability and cash flows.
- Risks Relating to the Business: The company relies on third-party transportation providers for inbound raw materials and outbound finished goods, and any disruption or inefficiency in such logistics arrangements may adversely affect its business, financial condition, results of operations, and cash flows.
- Risks Relating to the Business: The company's historical dependence on job-work revenue and its ongoing transition to manufacture expose the company to customer concentration, execution and operational risks, which may adversely affect its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: Non-availability of contract workers at reasonable cost or any strikes, work stoppages or increased wage demands could lead to disruption in the company operations, which could adversely impact its business, financial condition, cash flows and results of operations.
- Risks Relating to the Business: The company's diversification beyond its existing line in RMG segment may not be successful, which could adversely affect the company's business, financial condition, results of operations and prospects.
- Risks Relating to the Business: The Company does not own any registered intellectual property rights, and any inability to protect its brand, business processes or proprietary information may adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: The Company operates in a highly competitive and evolving textile landscape, and any inability to respond to pricing pressures, technological developments or industry consolidation could negatively affect its operations, market share and financial results.
- Risks Relating to the Business: The company derives a significant portion of its raw material procurement and processing requirements from Sona Style Limited, its group company, aggregating to Rs.249.10 million, Rs.1,206.40 million and Rs.2.13 million during the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively and any disruption in such relationship or issues arising from common promoter control may adversely affect the company's business, results of operations and financial conditions.
- Risks Relating to the Business: The company requires certain approvals and licenses in the ordinary course of business and is required to comply with certain rules and regulations to operates its business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company operation.
- Risks Relating to the Business: Its may be unable to attract and retain employees with the requisite skills, expertise and experience, which would adversely affect the company operations, business growth and financial results.
- Risks Relating to the Business: As on July 31, 2026, an aggregate of Rs. 2,638.43 million was outstanding towards loans availed from banks under various financing arrangements have charge over its movable and immovable properties in respect of finance availed by the company.
- Risks Relating to the Business: The company's inability to effectively manage its growth or successfully implement the company's business strategies may adversely affect its business, financial condition, and results of operations.
- Risks Relating to the Business: The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company's access to capital and thereby adversely affect its business and results of operations.
- Risks Relating to the Business: Any shortage, disruption, or unavailability of electricity may adversely affect the company's manufacturing operations, results of operations, and financial condition.
- Risks Relating to the Business: Inaccurate demand forecasting or disruptions in the company's supply chain may lead to inventory imbalances or loss of business, which could adversely affect its operations and financial performance
- Risks Relating to the Business: If the company is unable to establish and maintain effective internal controls and compliance system, its business and reputation could be adversely affected.
- Risks Relating to the Business: Certain sections of this Red Herring Prospectus disclose information from the CareEdge Report which has been commissioned and paid for by the company exclusively in connection with the Issue and any reliance on such information for making an investment decision in the Issue is subject to inherent risks.
- Risks Relating to the Business: Any variation in the utilisation of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior Shareholders approval.
- Risks Relating to the Business: The company funding requirements and the proposed deployment of Net Proceeds have not been appraised by any bank or financial institution or any other independent agency.
- Risks Relating to the Business: Absence of a definitive agreement or formal orders for purchase of equipment may lead to non-availability of equipment at commercially acceptable terms or at the prices currently specified in the quotation. The company's inability to procure the equipment at the agreed or expected terms as specified in the Quotation may have an adverse impact on the business operations, financial condition, and growth plans of the Company.
- Risks Relating to the Business: Activities involving the company's manufacturing process can be dangerous and can cause injury to people or property in certain circumstances. A significant disruption at its Manufacturing Facility may adversely affect the company's production schedules, costs, revenue and ability to meet customer demand.
- Risks Relating to the Business: The company is dependent on its Promoters for functioning of the company's business and its believe that the company's senior management team and other key managerial personnel in its business is critical to the company's continued success and its may be unable to attract and retain such personnel in the future.
- Risks Relating to the Business: Any adverse publicity or perception relating to the Company or its Promoters could have an impact on the company's business, reputation and results of operations.
- Risks Relating to the Business: Changes in technology may affect the company's business by making its Manufacturing Facility or equipment less competitive or obsolete.
- Risks Relating to the Business: The company operations are significantly dependent on its ability to successfully identify market requirements and customer preferences and gain customer acceptance for the company's products.
- Risks Relating to the Business: The company operations may be materially adversely affected by strikes, work stoppages or increased compensation demands by its employees.
- Risks Relating to the Business: Improper storage, processing and handling of greige fabric and yarn may cause damage to the company's inventory leading to adverse effect on its business and results of operations.
- Risks Relating to the Business: Failures or disruption of the company's information and technology ("IT") and/ or enterprise resources planning systems may adversely affect its business, financial condition, results of operations and future prospects.
- Risks Relating to the Business: The company's future funds requirements, in the form of issue of capital or securities and/or loans taken by the company, may be prejudicial to the interest of the shareholders depending upon the terms on which they are eventually raised.
- Risks Relating to the Business: The company's ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in the company's financing arrangements.
- Risks Relating to the Business: Misconduct or errors by manpower engaged by the company could expose it to business risks or losses that could adversely affect the company's business prospects, results of operations and financial condition.
- Risks Relating to the Business: Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company's Promoter Group may adversely affect the trading price of the Equity Shares.
- Risks Relating to the Business: Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- Risks Relating to the Business: QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.
- Risks Relating to the Business: The company has in this Red Herring Prospectus included certain non-GAAP financial measures and certain other industry measures related to its operations and financial performance. These non GAAP measures and industry measures may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Risks Relating to the Business: Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.
- Risks Relating to the Business: The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.
- Risks Relating to the Business: The Issue price of the company's Equity Shares may not be indicative of the market price of its Equity Shares after the Issue and the market price of the company's Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.
