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Listed
Garments & Apparels
Sonaselection India Limited IPO
₹142 Cr · Fresh Issue · Garments & Apparels
Price Band
₹94 – ₹99
Lot: 1200 shares (₹118,800)
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹142 Cr
Fresh Issue
Market Cap
₹562.60 Cr
At upper band
P/E Ratio
16.5x
P/S: 1.1x
Listing Date
24 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
17 Sep 2026
✓
Closes
21 Sep 2026
✓
Allotment
22 Sep 2026
✓
Refund
23 Sep 2026
✓
Listing
24 Sep 2026
IPO India Hub: Subscribe
Conviction
8/10
The company trades at 0.72× sector midpoint with 106.6% revenue CAGR and 19.69% ROCE, signaling strong operational efficiency and growth. The primary risk is elevated debt at 2.48× D/E, though 80 of 142 crores in proceeds are earmarked for debt repayment, which should materially improve the balance sheet.
Listing Performance
Issue Price
₹99
Allotment price
Listing Price
₹102
+3.03% on listing day
Current Price (CMP)
₹99.92
+0.9% vs issue
Listed On
24 Sep 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Exceptional Revenue Growth Trajectory
Revenue expanded from ₹121.3 Cr (FY-2) to ₹517.6 Cr (FY0), a 106.6% two-year CAGR. This demonstrates rapid market penetration and operational scaling in the garments sector, where such growth rates are uncommon.
✓ Strength
Attractive Valuation vs Sector Norms
At 16.5× P/E, the company trades at 0.72× the niche/unlisted sector midpoint of 23×, placing it in the Subscribe zone. The P/S of 1.1× is also reasonable for a high-growth apparel manufacturer with 16.4% EBITDA margins.
✓ Strength
Strong Return on Capital Employed
ROCE of 19.69% indicates efficient capital deployment and competitive positioning. Combined with 61.2% PAT CAGR over two years, the company is converting growth into profitability at an accelerating pace.
✓ Strength
Debt Reduction as Primary Use of Funds
₹80 Cr of the ₹142 Cr issue (56%) is allocated to debt repayment, which will reduce the D/E ratio from 2.48× toward healthier levels. This de-risking improves financial stability and future borrowing capacity.
⚠ Risk
Elevated Leverage Relative to Peers
D/E of 2.48× is above the 1.5× comfort threshold for manufacturing, indicating the company is highly leveraged. While debt repayment is planned, execution risk remains if revenue growth slows or working capital demands spike.
⚠ Risk
Margin Compression Risk in Apparel Sector
NPM of 6.6% is modest for a ₹517 Cr revenue base, leaving limited buffer against raw material inflation or competitive pricing pressure. Apparel is a cyclical, price-sensitive sector where margins can erode quickly.
⚠ Risk
Execution Risk on Capex Deployment
₹62 Cr is earmarked for plant and machinery at the Bhilwara facility. Delays or cost overruns in capex could impair returns and delay the debt reduction timeline, particularly if demand softens.
₹ Valuation
Valuation Sits Comfortably Below Sector
At 16.5× P/E against a 23× sector midpoint, the company is priced at a 28% discount. Revenue CAGR of 106.6% and PAT CAGR of 61.2% justify the valuation, supporting the Subscribe case for SME investors.
👁 Watch
Monitor Debt Reduction and Capex Execution
Post-listing, track quarterly debt paydown progress and capex deployment at the Bhilwara facility. Any material deviation from the stated use of proceeds or slippage in debt reduction should trigger a reassessment of the investment thesis.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Sonaselection India Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹516.95 Cr
Net Profit
₹34.02 Cr
Industry
Garments & Apparels
Issue Type
Fresh Issue
Promoters
HARSHIL NUWAL, SUBHASH CHANDRA NUWAL, UMA NUWAL, DEEPANK BHANDARI AND SONA POLYSPIN PRIVATE LIMITED
Lead Managers
Choice Capital Advisors
Quick Actions
Frequently Asked Questions
Subscribe. The company trades at 0.72× sector midpoint with 106.6% revenue CAGR and 19.69% ROCE, signaling strong operational efficiency and growth. The primary risk is elevated debt at 2.48× D/E, though 80 of 142 crores in proceeds are earmarked for debt repayment, which should materially improve the balance sheet.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
The minimum lot size is 1200 shares. At the upper band price of ₹99, the minimum investment per retail application is ₹118,800. You can apply for up to 13 lots (₹1,544,400) under the retail category (up to ₹2 lakh).
The IPO opens on 17 Sep 2026. It closes on 21 Sep 2026. Allotment is expected on 22 Sep 2026. Refunds initiate on 23 Sep 2026. Listing on BSE and NSE is on 24 Sep 2026.
The lead managers for the IPO are Choice Capital Advisors. Check the SEBI filing for the registrar details.
The IPO listed on 24 Sep 2026 at ₹102 against an issue price of ₹99 (+3.03% on listing day). The current market price (CMP) is approximately ₹99.92 (+0.9% vs issue).
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 21 Sep 2026. The minimum investment is ₹118,800 for one lot (1200 shares). The company trades at 0.72× sector midpoint with 106.6% revenue CAGR and 19.69% ROCE, signaling strong operational efficiency and growth. The primary risk is elevated debt at 2.48× D/E, though 80 of 142 crores in proceeds are earmarked for debt repayment, which should materially improve the balance sheet.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 21 Sep 2026. The IPO is priced at a P/E of 16.5x. Market cap at issue price is ₹562.60 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 1200 shares at ₹99 each, costing ₹118,800 per application. The issue closes on 21 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Sonaselection India Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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