Sonaselection shares list at 3% premium, slightly above expectations

Sonaselection India shares made a weak debut on exchanges on Thursday, slightly ahead of the grey market premium.

The stock listed at ₹102 on the BSE, a 3 per cent premium and on NSE the shares debuted at a premium of 3.34 per cent to the issue price.

Ahead of the debut, the grey market premium (GMP) for Sonaselection shares was at the IPO price, according to data available on websites tracking the unofficial market. GMP suggested a flat listing of the shares at ₹99

Shivani Nyati, head of wealth at Swastika Investmart, noted that Sonaselection India made a modest debut. Post-listing, the valuation at around 12.24 times FY26 P/E is reasonable, but declining Ebitda margins, high leverage, single-facility dependence, customer concentration and governance concerns remain key risks.

 

“Our view is Neutral, and fresh entry can be considered only after monitoring margin stability and deleveraging. For risk management, ₹96–98 can be considered as a stop-loss zone, while a sustained break below ₹96 may indicate further weakness,” she added.

The offer received bids for 2.01 crore shares as against 1 crore shares on offer. The issue was subscribed 2.01 times. The qualified institutional buyers' (QIB) portion was subscribed 1.16 times, while the non-institutional investors' (NII) category was subscribed 2 times. The retail individual investors' (RII) segment was subscribed 2.50 times

Sonaselection IPO Details

The issue opened for bidding on 17 September 2026 and closed on 21 September 2026. The price band of the IPO is fixed between ₹94 and 99 per share.

The IPO is entirely a fresh issue of shares worth ₹1,41.57 crore at upper price band of ₹99. There is no OFS component. At the upper end of the price band, the company is expected to be valued at ₹5,62.6 crore post-listing.

The funds raised to the tune of ₹80 crore will be used towards repaying certain borrowings; ₹50.61 crore will be utilised towards funding capital expenditure towards purchase of plant and machineries. The company has an installed capacity of 82.44 million meters per annum for fabric manufacturing and capacity utilisation stood at 82.71 per cent in FY2026. The CAPEX is primarily to modernise the plant and there will not be any increment in the overall production capacity of the company pursuant to the installation of the proposed machinery. The balance is towards general corporate purposes.  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.