# Sonaselection India Limited: IPO analysis

> Sonaselection India Limited (CIN U17299RJ2022PLC079631) has filed a Draft Red Herring Prospectus with SEBI for an IPO comprising a fresh issue of 1,43,00,000 shares. In FY26 it reported revenue of ₹517 Cr (+63.6% on FY25) and a net profit of ₹34 Cr. Promoters hold 86.2% before the IPO. Our fact-check of its claims found 2 medium or high concerns across 51 claims checked.

- Page: https://ipo.innerkore.com/company/U17299RJ2022PLC079631/sonaselection-india-limited/
- CIN: U17299RJ2022PLC079631
- Last updated: 9 Sep 2026

## Key facts

- **Company:** Sonaselection India Limited
- **CIN:** U17299RJ2022PLC079631
- **Filing stage:** DRHP
- **Latest SEBI filing:** 9 Sep 2026
- **Bidding opens:** 17 Sep 2026
- **Bidding closes:** 21 Sep 2026
- **Listing on:** BSE, NSE
- **Revenue FY26:** ₹517 Cr
- **Revenue growth:** +63.6%
- **Net profit FY26:** ₹34 Cr
- **Revenue CAGR FY24 to FY26:** 106.7%
- **Promoter holding (pre-IPO):** 86.2%
- **Lead managers:** Choice Capital Advisors Private Limited
- **Registrar:** Kfin Technologies Limited
- **Fact-check flags:** 0 high, 2 medium, 3 low

## Key signals (read from the filing; not investment advice)

- **Growth** (looks fine): 106.7% a year. Sales FY24 to FY26; latest year +63.6%.
- **Profitability** (look closer): 6.6% net margin. FY26; operating margin slipping.
- **Debt** (concern): 2.48x equity. ₹258 crore borrowed at the end of FY26.
- **Profit into cash** (concern): -32% of profit. Operations brought in ₹-11 crore against ₹34 crore of profit in FY26.
- **One-off income** (look closer): 1% of profit. Other and one-off income is 1% of pre-tax profit; management describes 2 one-off items.
- **Where the money goes** (looks fine): All new money. 100% is new shares issued by the company. 61% of the new money repays debt.
- **Red flags** (look closer): 2 to review. 51 claims checked: 0 high, 2 medium concern.

## Financial snapshot (₹ crore unless stated; consolidated)

| | FY24 | FY25 | FY26 |
|---|---:|---:|---:|
| Sales | 121 | 316 | 517 |
| Sales growth | – | 161.2% | 63.6% |
| Operating profit | 28 | 58 | 84 |
| Operating margin | 23.3% | 18.2% | 16.3% |
| Net profit | 13 | 19 | 34 |
| Net margin | 10.8% | 5.9% | 6.6% |
| Net worth | 39 | 70 | 104 |
| Borrowings | 145 | 207 | 258 |
| Return on equity | 33.7% | 26.5% | 32.7% |

## Non-recurring items (as described by management)

- Errors of material amounts relating to prior period(s) are disclosed by a note with nature of prior period errors, amount of correction of each such prior period presented retrospectively in the statement of profit and loss and balance sheet, to the extent practicable along with change in basic and diluted earnings per share. (p.487)
- Other income saw a decrease of ₹10.60 Lakh in income from the sale of stores, spares and chemicals. (p.492)

## Use of proceeds (fresh issue)

- Repayment and/or pre-payment, in full or part, of certain borrowings: ₹80 crore
- Funding of capital expenditure towards purchase of plant and machineries: ₹51 crore
- General Corporate Purposes(1): amount not fixed yet

## Fact-checked claims

- **MEDIUM** (SubsidiaryPerformance): Our Promoter, Harshil Nuwal, and Subhash Chandra Nuwal, have interests in Sona Processors (India) Limited, Sona Texfab Private Limited, and Sona Styles Limited, and our Subsidiary, Sionnah Enterprises Private Limited.. The search results mention various entities like 'Sona Processors (India) Limited' (implied via context related to Texfab), 'Sona Texfab Private Limited' (implied via 'Game Changers Texfab'), and 'Sona Styles Limited' (implied via 'Osiajee Texfab'). However, the search results do not explicitly confirm the direct interest of the named promoters, Harshil Nuwal and Subhash Chandra Nuwal, in these specific companies as stated in the DRHP.
- **MEDIUM** (LitigationStatus): Choice Capital Advisors Private Limited was issued a certificate of registration dated September 30, 2011, by SEBI as a Merchant Banker Category I with SEBI registration no. INM000011872.. Search results indicate the existence of 'Choice Capital Advisors Private Limited' in various contexts, including SEBI-related cases and brokerage listings. However, none of the provided snippets directly confirm or deny the specific certificate of registration date (September 30, 2011) or the SEBI registration number (INM000011872) mentioned in the DRHP claim.
- **LOW** (SubsidiaryPerformance): The Company was incorporated as an unlisted public limited company under the Companies Act, 2013, pursuant to a certificate of incorporation dated February 11, 2022.. Search result [3] directly corroborates the claim by stating that Sonaselection India Limited was incorporated as an unlisted Public Limited company pursuant to a certificate of Incorporation dated February 11, 2022.
- **LOW** (SubsidiaryPerformance): A significant portion of raw material procurement and processing requirements are derived from Sona Style Limited, a group company.. One search result directly corroborates the claim by stating that the company derives a significant portion of its raw material procurement and processing requirements from Sona Style Limited, which is its group company.
- **LOW** (PromoterBackground): Kanhaiya Lal Acharya has been previously associated with Krishana Phoschem Limited as a statutory and compliance officer and has served as an independent director in Sona Processors (India) Limited and Janki Corp Limited.. The search results confirm the existence of Krishana Phoschem Limited and mention its connection to the entity, which is relevant to the claim regarding association with the company. However, the search results do not explicitly confirm the specific roles (statutory and compliance officer, independent director) of Kanhaiya Lal Acharya in the mentioned companies.
- **NONE** (PromoterBackground): There are no outstanding litigations involving the Group Companies that may have a material impact on the Company.. No web search results were found to corroborate, contradict, update, or provide any information regarding outstanding litigations involving the Group Companies of Sonaselection India Limited.
- **NONE** (PromoterBackground): There are no qualifications of the Statutory Auditor which have not been given effect to in the Restated Consolidated Financial Information.. No web search results were found to corroborate, contradict, update, or provide any information regarding the claim about the qualifications of the Statutory Auditor in the Restated Consolidated Financial Information.
- **NONE** (PromoterBackground): Subhash Chandra Nuwal has been associated with Sona Processors (India) Limited as a director since 1993.. No web search results were found to corroborate, contradict, update, or provide any information regarding the claim that Subhash Chandra Nuwal has been associated with Sona Processors (India) Limited as a director since 1993.
- **NONE** (PromoterBackground): Subhash Chandra Nuwal holds a bachelor’s degree in commerce from the University of Rajasthan and possesses over 32 years of experience in the textile industry.. No web search results were found to corroborate, contradict, update, or provide any information regarding the claim about Subhash Chandra Nuwal's educational background or professional experience.
- **NONE** (PromoterBackground): Subhash Chandra Nuwal is one of the Promoters and is currently designated as the Chairman, Non-Executive & Non-independent director of the Company.. No web search results were found to corroborate, contradict, update, or provide any information regarding the claim that Subhash Chandra Nuwal is a Promoter and Chairman of Sonaselection India Limited.
- **NONE** (PromoterBackground): Harshil Nuwal holds a bachelor’s degree in commerce from the University of Mumbai and is a director in the Company's Subsidiary.. No current web search results were found to corroborate, contradict, update, or provide any information regarding Harshil Nuwal's educational background or directorship in the company's subsidiary.
- **NONE** (PromoterBackground): Harshil Nuwal is one of the Promoters and currently serves as the Managing Director of the Company.. No current web search results were found to corroborate, contradict, update, or provide any information regarding the claim that Harshil Nuwal is a Promoter and Managing Director of Sonaselection India Limited.

## Common questions

### How big is the Sonaselection India Limited IPO?

Sonaselection India Limited's IPO comprises a fresh issue of 1,43,00,000 shares, according to its Draft Red Herring Prospectus. The price band has not been announced yet: draft filings leave it blank and it is set in the Red Herring Prospectus.

### What are Sonaselection India Limited's revenue and profit?

Sonaselection India Limited reported revenue from operations of ₹517 Cr in FY26, +63.6% versus FY25. Net profit was ₹34 Cr (FY25: ₹19 Cr). Revenue grew at a compound rate of 106.7% a year from FY24 to FY26. Figures are read from the DRHP, as printed there.

### How much do promoters own in Sonaselection India Limited?

Promoters hold 86.2% of Sonaselection India Limited before the IPO.

### How will Sonaselection India Limited use the IPO money?

The fresh-issue proceeds are earmarked for: Repayment and/or pre-payment, in full or part, of certain borrowings (₹80 Cr); Funding of capital expenditure towards purchase of plant and machineries (₹51 Cr); General Corporate Purposes (amount not fixed yet).

### What are the red flags in Sonaselection India Limited's DRHP?

We fact-checked 51 claims from the filing against the open web: 0 raised a high concern, 2 medium and 3 low. The most notable: The search results mention various entities like 'Sona Processors (India) Limited' (implied via context related to Texfab), 'Sona Texfab Private Limited'… Search results indicate the existence of 'Choice Capital Advisors Private Limited' in various contexts, including SEBI-related cases and brokerage listings.… This is an automated screen, not a verdict; each finding links to its sources.

### What does Sonaselection India Limited do?

Here's what you need to know before investing in Sonaselection India Limited's IPO.

### Who manages the Sonaselection India Limited IPO?

Book running lead managers: Choice Capital Advisors Private Limited. Registrar to the offer: Kfin Technologies Limited. Shares are proposed to list on BSE and NSE.

### Where can I read the original Sonaselection India Limited IPO documents?

All 2 filings for Sonaselection India Limited (DAP, DRHP) are listed on this page with links to the original PDFs on SEBI's website. Every page reference cites the exact page of the source document.

## Source documents

- [SONASELECTION INDIA LIMITED - RHP](https://www.sebi.gov.in/sebi_data/commondocs/sep-2026/Sonaselection%20India%20Limited%20%20-%20AP_p.pdf) (Abridged prospectus (DAP), filed 9 Sep 2026)
- [SONASELECTION INDIA LIMITED - RHP](https://www.sebi.gov.in/sebi_data/attachdocs/sep-2026/1789012955772.pdf) (Draft Red Herring Prospectus, filed 9 Sep 2026)

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Source: InnerKore IPO (https://ipo.innerkore.com/). Read from public SEBI filings by automated extraction; check the linked documents. Not investment advice.