Rajasthan-based Sonaselection India’s Rs 141.6 crore IPO hit 62% subscription on its second day, driven by full retail participation. The company plans to use over half the proceeds to cut its Rs 263.8 crore debt. The issue remains open for bidding until September 21.
The initial public offering of Rajasthan-based textile manufacturer Sonaselection India reached 62 percent subscription by midday on the second day of its issue. Data from the National Stock Exchange shows strong appetite from retail investors, who have fully subscribed to their reserved portion of the offer. Non-institutional investors have also shown interest, accounting for 29 percent of their allotted quota as of September 18.
Strategic Focus on Debt Reduction
The company is raising Rs 141.6 crore through this IPO. A significant portion of these funds—Rs 80 crore—is specifically earmarked for partial debt repayment. This move aims to address the company’s outstanding debt, which stood at Rs 263.8 crore as of July 2026. Investors may track how this reduction impacts the company's interest expenses and financial stability in the coming quarters. Beyond debt, the company plans to allocate Rs 50.6 crore for capital spending, primarily to upgrade machinery at its Bhilwara-based manufacturing facility. Before the public issue, the company secured Rs 42.47 crore through an anchor book allocation, with key participation from Astorne Capital, India Max Investment Fund, and Lords Multigrowth Fund.
Financial Performance and Growth Trends
The company reported solid financial growth for the fiscal year ending March 2026. Revenue grew by 63.6 percent to Rs 516.9 crore compared to the previous year, while net profit increased by 83.3 percent to Rs 34 crore. The business model is diversified, spanning manufacturing, job-work, and readymade garments, with the manufacturing segment contributing the majority of total income at 81.5 percent.
While the company has shown a strong upward trend in revenue and profit, the reliance on its manufacturing segment and the need for ongoing capital spending to upgrade machinery are factors investors may consider. The IPO is being managed by Choice Capital Advisors and will remain open for subscription through September 21. The market’s final reception will depend on the participation of institutional investors in the remaining days, and any future updates on order book stability or pricing power within the competitive textile sector.