Sonaselection India IPO GMP, Date, Price Band & Review

Sonaselection India IPO GMP

“Grey Market Premium” or GMP is defined as the rate at which the IPO's shares are traded in the market before they are officially listed on the stock exchange.

The Sonaselection India IPO is currently trading at ₹0, reflecting the sentiment of unofficial investors before the official listing. This premium suggests a potential listing price of ₹99, which is 0.00% above the issue price. While the Grey Market Premium is a key indicator of demand and investor appetite, it is important to remember that GMP is highly volatile and should not be the sole factor in your investment decisions.

Company Background

Sonaselection India Limited is an integrated fabric manufacturer and processor engaged in manufacturing and processing value-added fabrics for fashion and apparel applications. The company was incorporated in February 2022 and operates its principal manufacturing and processing facility at Hamirgarh, Bhilwara, Rajasthan.

The company’s operations cover sourcing of greige fabric, bleaching, dyeing, finishing, quality checking, grading, packing and delivery of finished textile products. Greige fabric is sourced from third-party suppliers, while certain yarn-conversion activities may also be undertaken through external job workers. The company’s model allows it to add value through in-house textile processing before supplying finished fabric to customers.

Sonaselection India primarily manufactures and processes cotton fabrics, cotton-lycra fabrics, cotton-blend fabrics, polyester-viscose fabrics and other polyester-based fabrics. The company operates in the value-added fabric segment, catering mainly to participants in the fashion and apparel supply chain.

Operations & Product Range

Sonaselection India Limited follows an integrated fabric-processing model. The business begins with procurement of greige fabric and progresses through bleaching, dyeing and finishing before the final product is quality-checked, graded, packed and dispatched to customers.

Its principal product offerings include 100% cotton fabric, cotton-lycra fabric, cotton-blend fabric, polyester-viscose fabric and polyester-blend fabric. Cotton and cotton-lycra fabrics are used for a variety of apparel applications, while polyester-viscose and other blended fabrics can serve formalwear, uniforms, fashion garments and related textile uses.

The company’s value addition comes from converting greige fabric into finished fabric with customer-specific colour, feel, finish and quality characteristics. It also uses external job workers for certain production processes, enabling flexibility but creating dependence on third-party execution, capacity availability and quality-control standards.

Facilities & Capacity

Sonaselection India Limited’s principal manufacturing and textile-processing facility is situated at Hamirgarh in Bhilwara, Rajasthan. Bhilwara is an established textile-processing cluster, providing the company access to suppliers, labour, job-work vendors, customers and industry-related infrastructure.

The facility covers approximately 49,540 square metres and has installed textile-processing capacity of approximately 82.44 million metres per annum. The unit is equipped for bleaching, dyeing and finishing of fabrics, enabling the company to undertake value-added processing of sourced greige fabric.

The company proposes to use part of the IPO proceeds to purchase plant and machinery at its existing Hamirgarh facility. The proposed capex is intended to support capacity enhancement, process capability and operational efficiency, subject to implementation and demand conditions.

Brands & Market Presence

Sonaselection India Limited operates in the Indian value-added fabric and textile-processing market. Its product portfolio covers cotton, cotton-lycra, cotton blends, polyester-viscose and polyester fabrics, allowing it to serve different customer requirements within the fashion and apparel value chain.

The company’s operations are centred in Bhilwara, Rajasthan, while its business model relies on sourcing greige fabric, processing it into finished fabric and selling to customers that require specific colours, textures, finishes and fabric specifications. Its location in a textile cluster supports access to industry participants and processing infrastructure.

The company’s market position will depend on its ability to maintain consistent quality, supply products on time, procure greige fabric at competitive prices, manage working capital and expand sales across customers and geographies.

Revenue Streams & Business Model

Sonaselection India Limited generates revenue primarily from the manufacture, processing and sale of finished textile fabrics. The company procures greige fabric from third-party suppliers or sources fabric through outsourced yarn-conversion arrangements, then undertakes bleaching, dyeing, finishing and related value-addition processes.

Its principal revenue streams include the sale of processed cotton fabric, cotton-lycra fabric, cotton-blend fabric, polyester-viscose fabric and polyester-blend fabrics. Revenue is also supported by the company’s processing capabilities, including bleaching, dyeing, finishing, quality control, grading, packing and delivery.

The company operates mainly on a B2B model, serving customers in the textile, fashion and apparel supply chain. Its revenue and margins may be influenced by cotton, yarn, polyester and other raw-material prices; availability of greige fabric; fashion and apparel demand; customer concentration; textile-industry cyclicality; product mix; capacity utilisation; external job-work dependence; and working-capital requirements.

Financial Performance

Sonaselection India Limited has reported substantial financial growth over the last three financial years. Revenue from operations increased from ₹120.98 crore in FY2024 to ₹315.95 crore in FY2025 and ₹516.95 crore in FY2026. Profit after tax increased from ₹13.10 crore in FY2024 to ₹18.56 crore in FY2025 and ₹34.02 crore in FY2026.

EBITDA increased from ₹28.49 crore in FY2024 to ₹58.12 crore in FY2025 and ₹84.77 crore in FY2026. The company reported an EBITDA margin of approximately 16.40% and a PAT margin of approximately 6.58% in FY2026.

The company reported ROE, or return on net worth, of approximately 39.05% and ROCE of approximately 19.69% in FY2026. Its debt-to-equity ratio stood at approximately 2.48 times, indicating that leverage and finance costs remain important considerations for investors. The company proposes to use a significant part of the net IPO proceeds for repayment or prepayment of borrowings.

Management & Shareholding

The promoters of Sonaselection India Limited are Mr. Harshil Nuwal, Mr. Subhash Chandra Nuwal, Mrs. Uma Nuwal, Mr. Deepank Bhandari and Sona Polyspin Private Limited. The IPO is entirely a fresh issue, and therefore no promoter or existing shareholder will sell equity shares through an offer for sale.

Before the issue, the promoter and promoter group hold 3,66,67,014 equity shares, representing 86.21% of the pre-issue paid-up equity share capital. Following the fresh issue of up to 1.43 crore shares, the promoters and promoter group are expected to hold 64.52% of the post-issue equity share capital.

Public shareholding is expected to increase from 13.79% before the IPO to 35.48% after the IPO. The promoter holding will reduce due to dilution from the fresh issue, rather than a promoter sell-down.

Board & Key Management

The leadership of Sonaselection India Limited is responsible for strategic direction, procurement planning, textile processing, production management, product quality, sales execution, customer relationships, working-capital management and governance.

The promoter group includes Harshil Nuwal, Subhash Chandra Nuwal, Uma Nuwal, Deepank Bhandari and Sona Polyspin Private Limited. The final RHP should be referred to for the complete, current composition of the Board of Directors, Independent Directors, Chief Financial Officer, Company Secretary and other key managerial personnel before publication.