Textile manufacturer Sonaselection India Limited has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to raise funds through an initial public offering. The Bhilwara-headquartered company plans to enter the capital markets with a fresh equity issue and no offer-for-sale component.
The proposed IPO will consist entirely of a fresh issuance of 1.43 crore equity shares. Since there is no offer for sale, all funds raised through the issue will flow directly to the company. The listing is expected to help improve the company’s market presence and provide it with access to long-term capital.
Choice Capital Advisors Private Limited has been appointed as the sole book-running lead manager for the issue, while KFin Technologies will act as the registrar.
The company plans to deploy the IPO proceeds primarily towards strengthening its balance sheet and expanding capacity. Around ₹80 crore will be used to repay borrowings, helping reduce debt and interest costs. Another ₹47.55 crore has been earmarked for the purchase of plant and machinery at its manufacturing unit. The remaining funds will be allocated towards general corporate purposes.
Founded in 2022, Sonaselection India is an integrated fabric manufacturing and processing company. Its main manufacturing facility is located in Bhilwara, Rajasthan, a region known for its strong textile ecosystem, skilled workforce and established supply chains.
The company manufactures a wide range of fabrics, including 100 per cent cotton, cotton blends, cotton lycra and polyester blends. It also undertakes fabric processing for various materials such as cotton, polyester-viscose, blended fabrics and polyester.
In addition to producing its own fabric, Sonaselection offers fabric processing services on a job-work basis. Under this model, customers supply greige fabric, while the company handles processing based on specific requirements related to colour, finish and quality standards.
For the financial year 2024–25, Sonaselection India reported revenue from operations of ₹316 crore. During the same period, the company posted a net profit of ₹18.56 crore, indicating steady operational performance within a relatively short period since inception.
Read more: Accenture Earnings Update: Q1 FY26 Revenue Rises 6%, Maintains FY26 Guidance.
Sonaselection India’s IPO is aimed at funding expansion and improving financial strength rather than enabling promoter exits. With its presence in a major textile hub, integrated operations and growing scale, the issue offers investors a chance to track a young textile manufacturing company as it moves into the public markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Dec 19, 2025, 12:39 PM IST
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