Sona Selection India's ₹141.6 crore IPO has been subscribed 1.23 times on its final day, driven by retail demand. The company plans to use most proceeds for debt repayment and capacity expansion. With grey-market premiums remaining flat, investors are focused on the company's ability to sustain its recent profit growth while managing its debt levels.
Sona Selection India’s initial public offering (IPO) crossed the full-subscription threshold on the third and final day of bidding, with the total issue booked 1.23 times as of 11:30 am. The company is seeking to raise ₹141.6 crore, with the entire amount offered through fresh equity shares rather than an existing shareholder exit.
Retail investors showed stronger interest compared to the non-institutional category, with their reserved portion subscribed 1.76 times. The non-institutional investor category reached 1.05 times subscription. The company has set a price band of ₹94-99 per share for this issue.
Financial Performance and Growth
The company reported a sharp rise in its financial figures for the fiscal year 2026. Revenue grew to ₹516.9 crore, marking a 63.6% increase from ₹316 crore in the previous year. Net profit also climbed by 83.3%, reaching ₹34 crore compared to ₹18.6 crore in the prior period. Most of this revenue, approximately 81.5%, comes from its manufacturing operations, with the remainder from job-work and readymade garments.
Use of Funds and Debt Profile
A significant portion of the money raised will be directed toward improving the company's balance sheet. Sona Selection India plans to use ₹80 crore to repay a part of its total outstanding debt, which stood at ₹263.8 crore as of July 2026. Additionally, ₹50.6 crore is set aside to invest in new plant and machinery at its Bhilwara manufacturing facility in Rajasthan.
Key Considerations for Investors
While the IPO has seen full subscription, grey-market activity remains subdued, with shares recently quoted at a zero premium. This indicates that there is currently no strong speculative interest in the listing. For potential investors, the main focus will be on whether the company can successfully manage its remaining debt after this repayment and if the planned expansion in machinery effectively translates into consistent profit growth. The immediate next steps for the IPO process include the finalization of the share allotment and the subsequent listing date.