Sona Selection India’s IPO Subscribed 90%, Reflecting Strong Investor Demand

Sona Selection India’s IPO Sees Strong Demand with 90% Subscription Rate

The robust interest in Sona Selection India’s IPO underscores a positive market sentiment towards the textile sector.

IPO Details and Financials

The IPO is priced between Rs 94 and Rs 99 per share, with a minimum bid requirement of 150 shares. At the upper price band, the company aims to raise approximately Rs 141.57 crore through a fresh issue of shares, with no offer for sale (OFS) component. This valuation positions Sona Selection at around Rs 562.6 crore post-listing.

The funds raised will primarily be allocated towards repaying borrowings (Rs 80 crore) and capital expenditures for upgrading plant machinery (Rs 50.61 crore). Notably, while the modernization aims to enhance operational efficiency, it will not increase the overall production capacity, which currently stands at 82.44 million meters per annum with a utilization rate of 82.71% for FY2026.

Investor Interest and Anchor Investors

Ahead of the IPO, Sona Selection successfully raised Rs 42.47 crore from anchor investors, allocating 42.90 lakh shares at the upper price of Rs 99 each. This early backing from institutional investors is often viewed as a positive signal, indicating confidence in the company’s business model and growth prospects.

Company Overview and Market Position

Sona Selection India is an integrated fabric manufacturing and processing company, specializing in value-added textile products. Its diverse product range includes 100% cotton fabrics, cotton lycra, and various blends, catering to a wide array of apparel applications. The company has also ventured into ready-made garments through a subsidiary established in July 2025, indicating a strategic move to capture more market share in the textile sector.

For the fiscal year ending March 31, 2026, Sona Selection reported a consolidated net profit of Rs 34.02 crore on sales of Rs 516.95 crore, showcasing its operational viability and growth trajectory in a competitive market.

Key Highlights

• Sona Selection India’s IPO subscribed 90% as of September 18, 2026.
• The IPO price band is set between Rs 94 and Rs 99 per share.
• Funds raised will be used for debt repayment and capital expenditures.
• The company reported a net profit of Rs 34.02 crore for FY2026.
• Recent diversification into ready-made garments through a subsidiary.

Investor Note: The strong subscription rate for Sona Selection India’s IPO reflects positive investor sentiment in the textile sector, particularly as the company expands its product offerings and modernizes its operations. Investors should consider the company’s growth potential and market positioning as they evaluate this investment opportunity.