Sonaselection India IPO Set to Open on September 17, Priced at Rs 94-99 Per Share!

Rajasthan-based fabric manufacturer Sonaselection India Ltd is set to launch its initial public offering (IPO) on September 17, with a price band of Rs 94-99 per share. The issue will be anchored a day earlier, on September 16, and will close on September 21. It comprises a fresh issue of up to 14.3 million equity shares with a face value of Rs 10 each, amounting to an estimated size of Rs 141.6 crore at the upper end of the price band. Investors will need to place a minimum bid of 150 shares, equivalent to an initial investment of at least Rs 14,850. The company intends to utilize the IPO proceeds primarily for repaying certain bank borrowings and for purchasing new machinery to enhance its manufacturing capabilities.

Sonaselection India Ltd specializes in the manufacturing and processing of a diverse range of fabrics, including 100% cotton, cotton lycra, and blends. Its manufacturing facility in Bhilwara boasts an impressive processing capacity of 82.44 million metres a year and covers approximately 49,540 square metres. The company has diversified its operations by entering the ready-made garments segment through its subsidiary, Sionnah Enterprises Private Ltd, which should appeal to retail investors looking for broader exposure in the textile sector.

While specific grey market sentiments for the IPO have not been explicitly mentioned, the interest in textile and manufacturing sectors often receives favorable attention from investors, especially amid India’s growing demand for sustainable and quality textiles. For Indian retail investors, this IPO represents an opportunity to invest in a company with an extensive production capacity and a diversified product range. It also underscores a broader trend of leveraging domestic manufacturing capabilities, which may boost investor confidence in the long-term prospects of the business.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)