About the Business
Incorporated in February 2022, Sonaselection India Limited is an integrated fabric manufacturing and processing company engaged in the production of value-added textile products. The company manufactures 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends, and polyester blends, while also undertaking contract processing of specialized synthetic and cotton textiles.
The company successfully transitioned from a pure job-work processing model to a full-scale manufacturing-led operation following the acquisition of an established textile processing unit in 2022 and the subsequent commissioning of a modern cotton fabric processing facility in July 2024.
- Integrated Infrastructure: Operates a large-scale manufacturing and finishing plant in Bhilwara, Rajasthan, spread over approximately 49,540 sq. meters with an annual processing capacity of 82.44 million meters.
- End-to-End Processing Capabilities: In-house processing infrastructure handling continuous bleaching, precision dyeing, printing, grading, and chemical finishing.
- Hybrid Revenue Engine: Combines own-label manufacturing and margin-accretive job-work fabric finishing, balancing capacity utilization and raw material price volatility.
- Skilled Operational Workforce: Supported by a dedicated workforce of 979 employees across production, quality assurance, safety, and supply chain logistics as of July 31, 2026.
The company’s promoters are Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari, and Sona Polyspin Pvt. Ltd.
Financial Overview
Sonaselection India Ltd. has recorded rapid top-line and earnings acceleration, with total revenue rising by 64% and Profit After Tax (PAT) surging by 83% between FY25 and FY26 following recent capacity commercialization.
| Metric (₹ Cr) | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Total Income | ₹517.60 | ₹316.47 | ₹121.31 |
| Operating EBITDA | ₹84.77 | ₹58.12 | ₹28.49 |
| PAT (Profit After Tax) | ₹34.02 | ₹18.56 | ₹13.10 |
| Net Worth | ₹104.16 | ₹70.07 | ₹38.88 |
| Reserves & Surplus | ₹61.63 | ₹47.10 | ₹35.78 |
| Total Borrowings | ₹258.24 | ₹207.40 | ₹144.60 |
| Total Assets | ₹474.99 | ₹374.77 | ₹203.50 |
Restated Consolidated Figures | Source: RHP Filings
Key Financial Metrics (FY26)
Issue Reservation
| Investor Category | Allocation Limit |
|---|---|
| QIB Shares Offered | Not more than 50% of the Issue |
| Retail (RII) Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Issue Size |
Objects of the Issue
The net proceeds from the 100% fresh capital issue (₹141.57 Cr) are proposed to be allocated toward:
- Repayment and/or prepayment, in full or part, of certain borrowings availed by the company ₹80.00 Cr
- Funding capital expenditure for plant and machinery at the existing Bhilwara manufacturing facility ₹50.61 Cr
- General Corporate Purposes Balance
Sonaselection India Limited has demonstrated swift scale expansion in Bhilwara’s textile corridor, leveraging modern processing infrastructure to build a high return-on-equity profile (ROE of 39.05% in FY26). The company operates a balanced model, capturing higher margins from in-house processed cotton-lycra blends while steadying revenues through contract job-work processing.
Crucially, the IPO is structured as a 100% fresh issue with zero promoter dilution via OFS. Earmarking ₹80 Cr toward debt reduction addresses the company’s primary structural risk (Debt/Equity stands elevated at 2.48x with ₹258.24 Cr in borrowings), significantly improving interest coverage and balance sheet stability. Meanwhile, ₹50.61 Cr in capex adds high-efficiency machinery to further boost throughput. At the upper price band of ₹99, the issue is valued at a post-IPO P/E of 16.53x against a market capitalization of ₹562.60 Cr. Investors looking for a high-growth value-added textile play may consider subscribing with a medium-term investment perspective.
