Sonaselection India Limited
PROSPECTUS · filed 01 Oct 2026
Sonaselection India Limited is a manufacturer of textile products with a revenue CAGR of 106.71% and a latest revenue of Rs 516.949 crore, while the IPO consists entirely of a fresh issue of Rs 141.57 crore. The company is not loss-making but faces high risks due to a single manufacturing facility in Bhilwara, Rajasthan, and a heavy geographic concentration of 95.31% of revenue from that state. Additionally, the company has reported negative cash flows from operating and investing activities in recent fiscal years.
What stands out
Risk factor. The Company generates a significant portion of its revenue from Rajasthan, with 95.31% of total revenue from operations derived from this state in Fiscal 2024, and 96.01% of purchases from Rajasthan in Fiscal 2026.
Risk factor. The Company operates a single manufacturing facility located in Bhilwara, Rajasthan, and does not operate any alternate or backup manufacturing facility.
Risk factor. A significant slowdown or shutdown of the manufacturing operations at the single facility could adversely affect the business, financial condition, and results of operations.
Primarily fresh capital. 100% of the offer is fresh issue, so most proceeds fund the company.
Strong revenue growth. Restated revenue CAGR of 106.7%.
Healthy return on equity. ROE of 32.7%.
How the offer is structured
Fresh issue
₹142 Cr
New capital into the company
OFS share
0%
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company from banks₹80.0 Cr
- Funding of capital expenditure towards purchase of plant and machineries at the existing Manufacturing Facility situated at located at 18th K M Stone, Chittorgarh Road, Hamirgarh, Bhilwara- 311025 Rajasthan, India₹50.6 Cr
- General Corporate purposes₹0.0 Cr
Restated financials
Revenue
₹517 Cr
Latest fiscal year
Profit after tax
₹34.0 Cr
Revenue CAGR
106.7%
Return on equity
32.7%
Debt / equity
2.48
EBITDA margin
16.4%
P/E at upper band
12.24
Only in a priced RHP
PAT CAGR
61.2%
| Fiscal year | Revenue | EBITDA | PAT | Net worth |
|---|---|---|---|---|
| 2024 | ₹121 Cr | ₹16.9 Cr | ₹13.1 Cr | ₹38.9 Cr |
| 2025 | ₹316 Cr | ₹26.1 Cr | ₹18.6 Cr | ₹70.1 Cr |
| 2026 | ₹517 Cr | ₹48.1 Cr | ₹34.0 Cr | ₹104 Cr |
Promoters, litigation & related parties
Promoter (pre)
86.2%
Related-party
3.6%
Share of revenue
Except as stated in this section, as on the date of this Prospectus, there are no outstanding (i) criminal proceedings; (ii) all actions taken by statutory or regulatory authorities; (iii) claims related to direct and indirect taxes in a consolidated manner; and (iv) other pending material litigations (including civil litigation or arbitration proceeding, in each case involving our Company, Directors, Promoters or Subsidiary (collectively, the “Relevant Parties”) and (v) litigation involving our Group Companies which have a material impact on our Company. Furthermore, there are no disciplinary actions (including penalties) imposed by SEBI or stock exchanges against our Promoters or Directors in the last five Fiscals immediately preceding the date of this Prospectus, including any outstanding action. Furthermore, except as disclosed in this section, there are no outstanding (i) criminal proceedings; and (ii) actions by regulatory and/ or statutory authorities involving our Key Managerial Personnels and Senior Management.
Risks the company discloses
The Company generates a significant portion of its revenue from Rajasthan, with 95.31% of total revenue from operations derived from this state in Fiscal 2024, and 96.01% of purchases from Rajasthan in Fiscal 2026.(Geographic Concentration)
The Company operates a single manufacturing facility located in Bhilwara, Rajasthan, and does not operate any alternate or backup manufacturing facility.(Operational Concentration)
A significant slowdown or shutdown of the manufacturing operations at the single facility could adversely affect the business, financial condition, and results of operations.(Operational Concentration)
The Company has experienced negative cash flows from operating activities in Fiscal 2026 (₹109.89 million) and Fiscal 2025 (₹141.77 million).(Financial)
The Company has experienced negative cash flows from investing activities in Fiscal 2026 (₹199.99 million) and Fiscal 2025 (₹504.19 million).(Financial)
The Company has experienced negative cash flows from investing activities in Fiscal 2024 (₹1,081.20 million).(Financial)
The Company has a warehousing capacity of approximately five million meters at its manufacturing facility.(Operational)
The Company incurred ₹17.00 million, ₹6.49 million and ₹6.16 million towards repairs and maintenance in Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively.(Operational)
How this document reads, dimension by dimension
Each bar is a fixed formula applied to the figures shown above, scored 0–100. This is a reading of what the company disclosed — not a recommendation to apply or avoid, not a price target, and not a prediction of listing performance. Dimensions that could not be extracted are excluded rather than assumed, so coverage varies between documents.