IPO closes on 21 Sep'26
Sonaselection India Limited
Minimum Investment
₹ 14,850 / 150 shares
Our Verdict:
Neutral
- Sonaselection India is an integrated fabric manufacturing and processing company based in Bhilwara, Rajasthan, recently expanding into readymade garments through a subsidiary; revenue from operations grew from ₹120.98 crore (FY24) to ₹516.95 crore (FY26) — more than a four-fold increase in two years — and PAT grew from ₹13.10 crore to ₹34.02 crore over the same period.
- The growth reflects a genuine business model shift, not just scale: the Company moved from being 88.72% job-work-driven in FY24 to 81.50% manufacturing-driven in FY26, meaning it is increasingly selling its own fabric rather than processing on behalf of others — a structural change worth understanding rather than reading the revenue growth as simple like-for-like expansion.
- Margins have moved in the opposite direction from revenue: EBITDA margin fell from 23.55% (FY24) to 16.40% (FY26) even as revenue grew more than four-fold, and PAT margin dipped from 10.82% to 6.58% over the same period — a sign that the shift toward manufacturing has come with margin compression, at least so far.
- Concentration and leverage moved in different directions: customer concentration and Rajasthan revenue concentration both improved meaningfully, but the Debt-to-Equity ratio remains elevated at 2.48x in FY26 (albeit down from 3.72x in FY24), with Promoters having personally guaranteed a portion of the Company's borrowings.
- This is a young company (incorporated 2022) that has scaled very quickly and is genuinely diversifying its customer and geographic base, but the margin compression alongside rapid growth, continued high leverage, a single manufacturing site, and disclosed governance history involving one Promoter (a past disqualification and RoC filing irregularities) are all real considerations before assuming the growth trajectory of the last two years continues at the same pace or quality.
About the company
Founded in
1 Jan'22
Managing director
Harshil Nuwal
- Sonaselection India is an integrated fabric manufacturing and processing company, converting raw textiles into finished, value-added fabrics including 100% cotton fabric, cotton lycra (stretch) fabric, cotton blends and polyester blends.
- In addition to manufacturing its own fabric, the Company undertakes job-work processing of greige fabric supplied by third-party customers, and has recently expanded into the readymade garments (RMG) segment through its subsidiary, Sionnah Enterprises Private Limited, incorporated on July 1, 2025.
- The Company's sole manufacturing facility is located on 49,540 sq. mtr. of freehold industrial land in Bhilwara, Rajasthan, equipped entirely with new machinery sourced from Italy, Germany, China, the UK and Switzerland, with no second-hand or leased equipment.
- Promoters: Harshil Nuwal (Managing Director), Subhash Chandra Nuwal (Chairman, Non-Executive Director), Uma Nuwal (Whole-time Director), Deepank Bhandari and Sona Polyspin Private Limited.
STRENGTHS
- Integrated Fabric Manufacturing and Processing Model: Manufactures 100% cotton, cotton lycra, cotton-blend and polyester-blend fabrics, and undertakes job-work processing of greige fabric for third-party customers, with a recent expansion into readymade garments (RMG) through subsidiary Sionnah Enterprises.
- Rapid Revenue and Profit Growth: Revenue from operations grew from ₹120.98 crore (FY24) to ₹516.95 crore (FY26); PAT grew from ₹13.10 crore to ₹34.02 crore over the same period.
- Shift Toward Higher-Value Manufacturing: The revenue mix shifted from being 88.72% job-work-driven in FY24 to 81.50% manufacturing-driven in FY26, reflecting a strategic move toward higher-value, own-branded fabric production.
- Improving Customer and Geographic Diversification: Top 10 customer concentration fell from 48.15% (FY24) to 29.44% (FY26), and Rajasthan’s share of revenue eased from 95.31% to 37.31% over the same period, as the Company expanded into Delhi, Maharashtra and Karnataka.
- Modern, Wholly-Owned Manufacturing Facility: Operates a 49,540 sq. mtr. freehold facility in Bhilwara, Rajasthan, equipped entirely with new machinery sourced from Italy, Germany, China, the UK and Switzerland, with no second-hand or leased equipment.
RISK FACTORS
- High Leverage: Debt-to-Equity ratio stood at 2.48x in FY26 (down from 3.72x in FY24 but still elevated), with Promoters having pledged personal property and provided personal guarantees as collateral for the Company’s borrowings.
- Single-Location Manufacturing Concentration: All manufacturing operations are carried out from a single facility in Bhilwara, Rajasthan, and 96.01% of FY26 purchases were sourced from Rajasthan, exposing the Company to concentrated operational and supply-chain risk.
- Governance History Involving a Promoter: Individual Promoter Deepank Bhandari was subject to disqualification and default from November 2017 to December 2019 and was associated with entities that have since been struck off; the Company has also disclosed past irregularities and discrepancies in its Registrar of Companies filings.
- Recent Promoter Share Sales: Promoters sold a portion of their shareholding after the DRHP was filed, and further sales could affect the market price and liquidity of the Equity Shares post-listing.
- History of Negative Cash Flows: The Company has experienced negative cash flows in the past; a recurrence could affect its business, financial condition and growth prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹141.57 crore
Fresh Issue
₹ ₹141.57 crore
OFS
₹
Price range
₹ 94 - 99
Lot size
150 shares
Issue Objective
- Net Proceeds are proposed to be used for: (i) repayment/prepayment of certain outstanding borrowings (~₹80 crore); (ii) capital expenditure for purchase of plant and machinery (~₹50.61 crore); and (iii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
17 Sep'26
Bidding close
21 Sep'26
Allotment date
22 Sep'26
Refund date
23 Sep'26
Listing
24 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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