Sonaselection India IPO Recommendation: Apply or Avoid?

By Jagat Joshi
September 16, 2026

Sonaselection is involved in the manufacturing and processing of a wide range of fabrics, including cotton lycra (stretch) fabric, cotton blends, polyester blends, 100% cotton, cotton blends, polyester-viscose (P/V), and polyester fabric.

The IPO will be open for subscription on September 17, 2026, and close on September 21, 2026. Sonaselection is a Mainboard IPO with a price band set between ₹94 to ₹99 per share. As per the RHP, the company plans to raise around ₹142 crores through an Initial Public Offering (IPO).

Apply or Avoid? IPO Details GMP Messages Review Subscription Allotment Listing

Reviewer	Recommendation
IPOWatch	May Apply
Swastika Investmart Ltd.	Neutral
Capital Market	Avoid

Sonaselection is an integrated fabric manufacturer that uses advanced technology, well-established production capabilities, and strict quality systems to transform raw textiles into finished, high-quality fabrics.

For medium-term investment, this IPO might be a good fit. Overall, investors should carefully evaluate the company’s fundamentals, strengths, risks, and growth prospects before deciding whether to invest.

Strengths:

Its manufacturing facility is strategically located in Bhilwara, Rajasthan, a region known as ‘Textile City’ with advanced technologies to support its product portfolio.
Established long-term relationships with customers with a high retention rate.
Sonaselection is backed by a professional management team and experienced promoters who have over 30 years of experience in the textile sector.
Track record of healthy and steady financial growth, generating a revenue of ₹516.95 crore, EBITDA of ₹84.77 crore, and PAT of ₹34.02 crore.

Weaknesses:

Its manufacturing facility is situated in Rajasthan, which derives 37.31% of its revenue from this state. Geographic concentration risks can adversely affect its operations, financial condition, and operating results.
Most of its operations are performed from a single manufacturing facility located at Bhilwara, Rajasthan. Any slowdown, shutdown, or unwanted interruption of the facility can negatively impact the business and financial condition.
In FY26, the firm has experienced a negative cash flow of ₹10.98 crore and has experienced negative cash flow in past years. If this continues can badly impact the financial condition and overall business.
Its high debt-to-equity ratio of 2.48, 2.96, and 3.72 times as of 2026, 2025, and 2024 can adversely affect our financial condition and results of operations.

Disclaimer

Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.

Jagat Joshi

Founder of IPOWatch, brings nearly 15 years of experience in IPO analysis and market research. He provides complete coverage of upcoming IPOs, subscription trends, grey market premiums (GMP), and post-listing performance, along with easy-to-understand reviews, insights, and analysis. In his working journey, he has worked with various platforms and received expertise in stock market analysis and primary markets.