Rajasthan-based Sonaselection India will open its IPO for subscription on September 17, 2026, offering 1.43 crore fresh shares. Investors are tracking the company's plan to use Rs 80 crore of the proceeds to cut debt and Rs 50.6 crore for new machinery upgrades.
Sonaselection India, a textile manufacturer based in Rajasthan, is set to launch its initial public offering (IPO) on September 17, 2026. The company will open the subscription window for retail and institutional investors, with the process concluding on September 21, 2026. The stock is expected to debut on the NSE and BSE by September 24, 2026.
The public offering consists entirely of 1.43 crore fresh equity shares, with no offer-for-sale component from existing shareholders. This structure means all money raised from the IPO will flow directly into the company’s accounts to support its operations and expansion plans.
A significant part of the company’s strategy involves addressing its balance sheet. Out of the total proceeds, Sonaselection India plans to allocate Rs 80 crore toward debt repayment, which is a key move given the company's current financial leverage. Additionally, the firm has earmarked Rs 50.61 crore to acquire new plant and machinery for its manufacturing unit in Bhilwara, Rajasthan. These investments aim to modernize production capabilities and potentially increase output efficiency.
Financially, the company reported a revenue of Rs 517.6 crore and a profit after tax of Rs 34.02 crore for the fiscal year ended March 2026. This performance indicates a period of operational growth, though prospective investors often assess such companies alongside industry-wide trends.
While the expansion and debt reduction plans are central to the story, investors typically look at specific risk factors in the textile sector. The industry is known for being cyclical, with profitability often influenced by raw material costs, global export demand, and intense price competition. Furthermore, financial reports indicate that the company operates with a high debt-to-equity ratio, currently estimated between 2.48 and 2.96. The success of the planned debt reduction will be an important metric for the company's financial stability in the coming quarters.
With Choice Capital Advisors serving as the lead merchant banker, the official price band and lot size for the IPO are yet to be disclosed. Investors waiting for more details should monitor upcoming regulatory filings and the price band announcement to understand the valuation compared to the company’s recent financial performance.