Sonaselection India IPO Closes Today as Retail Portion Reaches 1.63 Times Subscription

The initial public offering (IPO) of Bhilwara-headquartered Sonaselection India Limited entered its third and final day of subscription on Monday, September 21, 2026. Bidding trends on the closing day showed that retail individual investors (RIIs) led the charge, booking their reserved quota 1.63 times as the overall offering crossed the full subscription line.

The public issue had previously gathered momentum on Day 2, ending Friday with an overall subscription of 90% (0.90 times), backed by bids for 90.52 lakh shares against the 1.00 crore shares on offer.

Category-Wise Subscription Snapshot

Investor participation picked up on the final day across segments:

• Retail Individual Investors (RIIs): The retail quota was subscribed 1.63 times, improving from 1.29 times logged at the end of Day 2.
• Non-Institutional Investors (NIIs): The portion reserved for non-institutional and high-net-worth individuals had recorded a 60% (0.60 times) subscription by the close of the second day, with fresh bids arriving during Monday's session.
• Qualified Institutional Buyers (QIBs): Institutional interest stood at 46% (0.46 times) at the close of Friday, with primary institutional book building heavily backloaded toward the close of trading on Monday.

Key Issue Details and Price Band

The ₹141.57-crore offering is a 100% fresh issue of 1.43 crore equity shares, featuring no offer-for-sale (OFS) component from existing promoters.

Summary of IPO Structure:

• Price Band: ₹94 to ₹99 per equity share.
• Lot Size: 150 shares per application, translating to a minimum retail application amount of ₹14,850 at the upper price band.
• Lead Manager & Registrar: Choice Capital Advisors Private Limited is the sole book-running lead manager, while KFin Technologies Limited is acting as the registrar.
• Anchor Allocation: Prior to the issue launch, the company raised ₹42.47 crore from anchor investors on September 16, 2026, by allocating 42.90 lakh shares at ₹99 per share.

Use of Proceeds and Financial Profile

Sonaselection India operates an integrated fabric manufacturing and processing unit in Bhilwara, Rajasthan, with an annual capacity of 82.44 million meters.

The net proceeds from the fresh capital raise are slated for specific corporate objectives:

• Debt Repayment: Approximately ₹80 crore has been earmarked for the repayment or prepayment of existing borrowings to reduce financing costs.
• Capital Expenditure: Around ₹50.61 crore will fund the acquisition of new plant and machinery to modernize its Bhilwara facility.
• General Corporate Purposes: The remainder of the proceeds will support routine operational and corporate requirements.

For FY26, the company reported total revenue of ₹517.60 crore, a 63.5% jump year-on-year, while net profit grew 83.3% to ₹34.02 crore.

Timeline Ahead

Following the close of the subscription window on Monday, the basis of allotment is scheduled to be finalized on Tuesday, September 22, 2026. Refunds and demat share transfers are expected to be initiated on September 23, with the equity shares slated to list on both the BSE and NSE on Thursday, September 24, 2026.

Tags: Sonaselection India IPO BSE NSE SEBI Textile Sector