Sonaselection India Debuts at 3% Premium on BSE and NSE Following 2.01 Times Subscription

Shares of Rajasthan-based textile manufacturer Sonaselection India Limited made a tepid debut on Dalal Street on Thursday, September 24, listing at a modest premium of over 3% against their issue price of ₹99 per share.

On the National Stock Exchange (NSE), Sonaselection India stock opened at ₹102.31 per share, representing a premium of 3.34% over the upper end of the price band. On the BSE, the equity shares commenced trading at ₹102 apiece, up 3.03% from the issue price.

With the lot size fixed at 150 equity shares, successful retail bidders who were allotted shares gained ₹496.50 per lot based on the NSE listing price.

IPO Details and Investor Subscription

The initial share sale of Sonaselection India was open for subscription from September 17 to September 21. The ₹141.57-crore public issue was structured entirely as a fresh issue of 1.43 crore equity shares, carrying no Offer-for-Sale (OFS) component from existing promoters. Ahead of the issue opening, the company mobilised ₹42.47 crore from anchor investors.

By the close of bidding, the book-building issue was subscribed 2.01 times overall:

• Qualified Institutional Buyers (QIBs) subscribed 1.16 times their allocated quota.
• Non-Institutional Investors (NIIs) bid 2.00 times the portion set aside for them.
• Retail Individual Investors (RIIs) led demand, subscribing 2.50 times their reserved tranche.

The grey market premium (GMP) in the days leading up to the listing hovered near par, signaling that secondary market demand would remain conservative despite steady retail bids.

Financial Health and Use of Proceeds

Incorporated in February 2022, Sonaselection India operates an integrated fabric manufacturing and processing facility located in Hamirgarh, Bhilwara—a major textile hub in Rajasthan. The company manufactures and processes cotton fabric, lycra stretch fabric, and varied synthetic blends.

On the financial front, the company posted strong numbers for FY26:

• Total income climbed 64% to ₹517.60 crore, compared to ₹316.47 crore in FY25.
• Net profit after tax (PAT) jumped 83% to ₹34.02 crore, up from ₹18.56 crore reported in the preceding fiscal.

The net proceeds from the fresh issuance are earmarked to strengthen the balance sheet and expand operational efficiency. The company plans to allocate ₹80 crore towards full or partial prepayment of certain bank borrowings, ₹50.61 crore toward capital expenditure for installing plant and machinery at the Bhilwara facility, and the remainder toward general corporate purposes.

Analyst View: Buy, Sell, or Hold?

Market watchers noted that Sonaselection India's moderate listing reflects broader caution in the small-to-midcap manufacturing segment.

Short-term investors and listing-gain seekers may consider taking partial profits or setting a strict trailing stop-loss near the IPO issue price of ₹99. For long-term investors, analysts suggest tracking execution after the planned debt repayment, the operational ramp-up of newly added processing machinery, and margin sustainability before adding fresh positions.

Tags: Sonaselection India BSE NSE IPO Listing Textiles SEBI