New IPO Alert: Sonaselection India files draft papers with SEBI to mobilise funds via public offer

Sonaselection India IPO: Textile company Sonaselection India Limited has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise funds via an initial public offering (IPO).

The Bhilwara-headquartered company's IPO will comprise a fresh issuance of 1.43 crore shares with no offer for sale (OFS) component, according to the preliminary.

IPO proceeds to the tune of ₹80 crore will be utilised for debt payment, ₹47.55 crore for the purchase of plant and machinery at the company's manufacturing unit, and a part will be used for general corporate needs.

"Our company expects to receive the benefits of the listing of the equity shares, including to enhance our visibility and our brand image among our existing and potential customers, and to create a public market for our equity shares in India," the DRHP said.

Choice Capital Advisors Pvt Ltd is the sole book-running lead manager of the issue, while KFin Technologies is the registrar.

About Sonaselection India

Founded in 2022, Sonaselection India is an integrated fabric manufacturing and processing company, with its core operations housed at its manufacturing facility at Bhilwara, Rajasthan.

Bhilwara is widely recognised as a major hub for textile processing and manufacturing, providing the company access to skilled labour, established supply chains and textile ecosystem advantages.

The company specialises in the manufacturing of 100% cotton fabric, cotton blends, cotton lycra (stretch) fabric, and polyester blends, and in the processing of fabric, including 100% cotton, polyester-viscose (P/V), cotton blends, and polyester fabric.

Apart from manufacturing its own fabric, Sonaselection also undertakes the processing of greige fabric on a job work basis for third-party customers. Under this mode, customers supply greige fabric, and the company provides processing services with respect to specific requirements relating to quality, colour shades, finishes and other product attributes.

The company had reported a net profit of ₹18.56 crore in the financial year 2024-25 and revenue from operations at ₹316 crore during the period.