Sonaselection India listed at ₹102.21 on the NSE today, a 3% gain from its ₹99 IPO price. The textile manufacturer raised ₹141.57 crore to reduce debt and upgrade facilities in Rajasthan. With a moderate subscription of 2.01 times, investors will now track the company's ability to lower interest costs and boost margins using the new funds.
Sonaselection India shares began their stock market journey on Thursday with a modest gain. The textile manufacturer's stock listed at ₹102.21 on the National Stock Exchange, which is a 3.34% premium over its fixed IPO price of ₹99. On the Bombay Stock Exchange, the shares saw a similar start, debuting at ₹102. The company, based in Bhilwara, reached a market capitalization of nearly ₹579.65 crore by the end of its first trading session.
The public offering concluded with a subscription rate of 2.01 times. This level of demand indicates cautious investor sentiment, especially compared to the high-subscription IPOs seen recently. While the grey market had hinted at a flat listing, the stock managed to open slightly higher. Retail investors showed the most interest, with their category subscribed 2.50 times, while non-institutional investors subscribed 1.99 times.
Debt Reduction and Operational Focus
The company raised ₹141.57 crore through this public issue. A significant portion of these funds is earmarked for strengthening the balance sheet. Management plans to use ₹80 crore to repay a part of the company's outstanding debt. As of July 2026, the company reported a debt level of ₹263.8 crore. By reducing this liability, the company aims to lower its interest expenses, which is a critical step given that textile manufacturing often operates on tight profit margins that are sensitive to finance costs.
Beyond debt repayment, ₹50.61 crore is allocated for capital expenditure. The company plans to acquire new plant and machinery for its existing manufacturing site in Rajasthan. This investment is intended to modernize operations and likely increase output or efficiency. However, the success of this expansion will depend on the company's ability to maintain demand for its textile products in a competitive sector where global and domestic pricing pressures can impact profitability.
Investor Monitorables
For investors, the immediate focus will be the company's performance in upcoming quarters. With a remaining debt of over ₹180 crore even after the planned repayment, monitoring the debt-to-equity ratio will be important. Additionally, shareholders may watch for updates on the commissioning of the new machinery and whether the improved operational capacity leads to better margins. The anchor investor backing, led by firms like Astorne Capital, India Max Investment Fund, and Lords Multigrowth Fund, provides some institutional signal, but the company's long-term stock performance will ultimately depend on its ability to turn the infusion of capital into higher earnings and better cash flow.