Sonaselection India Ltd has opened its initial public offering (IPO) today, September 17, 2026. The textile company has set a price band of ₹94 to ₹99 per equity share. The issue will remain open until September 21. Through the IPO, the company plans to raise up to ₹141.57 crore at the upper end of the price band.
The IPO is made up entirely of a fresh issue. Sonaselection India will issue about 1.43 crore new shares. There is no offer-for-sale, or OFS, part in this issue. This means the money raised from the fresh shares will go to the company and will be used for its stated business needs.
The shares are proposed to be listed on both the BSE and NSE. The tentative listing date is September 24, 2026. The basis of allotment is expected on September 22, while the refund and share credit process is set for September 23.
Price Band and Minimum Investment
The price band for the Sonaselection India IPO is ₹94 to ₹99 per share. The face value of each equity share is ₹10.
The minimum bid size is 150 shares. At the upper price of ₹99, an investor needs ₹14,850 for one lot. Investors can place bids in multiples of 150 shares after the first lot.
At the lower price of ₹94, one lot costs ₹14,100. At ₹99, the amount rises to ₹14,850. The final amount paid by an investor will depend on the price at which shares are allotted.
The total issue has 1.43 crore shares. Of these, 50.05 lakh shares are reserved for retail investors, while 71.50 lakh shares are for qualified institutional buyers, including the anchor portion. Another 21.45 lakh shares are set aside for non-institutional investors.
Where Will the IPO Money Go?
A major part of the IPO proceeds will go toward debt reduction. Sonaselection India plans to use ₹80 crore to repay or prepay certain borrowings. This accounts for about 56.51% of the estimated issue proceeds.
The company also plans to use ₹50.61 crore for the purchase of plant and machinery. This is about 35.75% of the estimated issue proceeds. The remaining amount will be used for general corporate purposes.
The debt repayment plan is important because it can reduce the company’s borrowing burden. The machinery purchase, meanwhile, can support its production capacity and operations. However, the actual benefit from such capital expenditure will depend on how well the company uses the new assets and how demand develops.
What Does Sonaselection India Do?
Sonaselection India is an integrated fabric manufacturing and processing company. Its main operations are based in Bhilwara, Rajasthan, a major textile centre.
The company makes several types of fabrics. These include 100% cotton fabric, cotton lycra fabric, cotton blends and polyester blends. It also processes cotton, cotton blends, polyester-viscose and polyester fabrics.
Its business covers several steps of the fabric process. This gives the company control across different parts of production instead of relying only on one activity.
The company’s manufacturing facility in Bhilwara covers about 49,540 square metres. Its installed processing capacity stands at 82.44 million metres per year, according to company information reported by The Economic Times.
Entry Into Readymade Garments
Sonaselection India also entered the readymade garment segment in fiscal 2026. It did this through its wholly owned subsidiary, Sionnah Enterprises Private Ltd.
This move gives the company a presence beyond fabric manufacture and processing. The garment business can create another source of revenue and can also connect with its existing fabric operations.
At the same time, the garment market has its own set of challenges. Demand, fashion trends, raw material costs and competition can affect sales and margins. Therefore, the performance of this newer business will be something investors may watch after the IPO.
Why the Fresh Issue Matters
One key point about this IPO is its structure. The entire issue is a fresh issue of about 1.43 crore shares. There is no OFS component.
In an OFS, existing shareholders sell their shares and receive the money. In a fresh issue, the company receives the IPO funds, subject to issue expenses. In Sonaselection India’s case, the stated use of the money is mainly debt repayment and the purchase of plant and machinery.
The planned use of ₹80 crore for debt repayment means more than half of the issue proceeds have a direct link to the company’s balance sheet. The proposed ₹50.61 crore machinery purchase is also a sizeable part of the fund use.
IPO Dates and Listing
The Sonaselection India IPO opened on September 17, 2026, and will close on September 21, 2026. The anchor investor bidding took place on September 16.
The expected allotment date is September 22. Refunds are scheduled to start on September 23, along with the credit of shares to successful applicants. The shares are expected to list on September 24 on the BSE and NSE. These dates are tentative and can change.
Choice Capital Advisors is the book-running lead manager for the issue, while KFin Technologies is the registrar.
What Investors Should Watch
The IPO gives investors access to a textile manufacturer with an established facility in Bhilwara and a broad fabric product range. The company has also entered the readymade garment segment, which adds another part to its business.
At the same time, textile companies face several factors that can affect their results. Cotton and other raw material prices can change. Export and domestic demand can also move with market conditions. Competition remains another important factor.
The planned debt repayment can reduce borrowings, while the machinery purchase may support future operations. Investors may therefore want to follow the company’s debt level, sales growth, profit margins, capacity use and cash flow after the listing.
The Bigger Picture
Sonaselection India’s IPO comes at a busy time for the Indian primary market. Its ₹141.57 crore issue is much smaller than some of the other IPOs that have entered the market this week. Still, the issue offers a direct look at a textile company that plans to use fresh capital for both debt reduction and business assets.
For investors, the key facts are clear: the IPO opens on September 17, closes on September 21, has a ₹94–₹99 price band, and consists of a fresh issue of about 1.43 crore shares. At the upper price, the company can raise ₹141.57 crore.
The next stage will be the subscription response and, later, the company’s performance as a listed business. The way Sonaselection India uses the IPO money, manages debt and grows its textile and garment operations will be important factors for its future.
