Sonaselection India IPO booked 62% so far on Day 2; retail portion fully subscribed

New business data points to the fact that The initial public offering (IPO) of the Rajasthan-based textiles firm Sonaselection India has received 62 percent subscription, as of 12:15 pm on September 18, according to the NSE data.

The Rs 141.6-crore IPO received bids for 61,71,750 shares against 1,00,10,000 shares on offer. The retail investor portion was fully subscribed, while the non-institutional investor (NII) category saw 29 percent subscription.

In the grey market, Sonaselection India shares were commanding a grey market premium (GMP) of 2 percent as of the morning of September 18, according to InvestorGain. Market participants should note that GMP is not an official market indicator and does not guarantee the stock-exchange debut price or returns.

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The Rs 141.6-crore IPO comprises an entirely fresh offering of 1.43 crore equity shares. The price range has been set at Rs 94-99 per share. The offering opened on September 17 and will stay open for subscription until September 21.

Ahead of the IPO opening, Sonaselection India boosted Rs 42.47 crore from anchor market participants. Astorne Capital was the largest investor in the anchor book, investing Rs 22.7 crore for 22.96 lakh shares. India Max Investment Fund and Lords Multigrowth Fund each picked up 9.96 lakh shares for Rs 9.86 crore.

The firm had finalised the allocation of 42.9 lakh shares to three anchor market participants at the upper end of the price range.

Of the net proceeds from the offering, Sonaselection India plans to use Rs 80 crore towards partial repayment of debt. The firm had total outstanding borrowings of Rs 263.8 crore as of July 2026.

Another Rs 50.6 crore will be used for capital expenditure, including the purchase of plant and machinery at its existing manufacturing facility in Rajasthan. The remaining funds will be used for general corporate purposes.

Sonaselection India manufactures 100 percent cotton fabric, cotton lycra or stretch fabric, cotton blends and polyester blends.

The firm operates a manufacturing facility in Bhilwara, Rajasthan, which is known as the 'Vastranagari'. The facility has an installed processing capacity of 82.44 million metres per annum.

The firm generates topline from three key segments — manufacturing, job-work for third-party customers and readymade garments.

Manufacturing contributed 81.5 percent of the firm's topline in FY26, while job-work accounted for 17.3 percent and readymade garments contributed 1.2 percent.

Sonaselection India noted a sharp climb in both topline and earnings in FY26.

The firm's earnings stood at Rs 34 crore in the financial year ended March 2026, up 83.3 percent from Rs 18.6 crore in the previous year. Topline increased 63.6 percent to Rs 516.9 crore in FY26 from Rs 316 crore in FY25.

Choice Capital Advisors is acting as the merchant banker for managing the Sonaselection India IPO.