IPO
Fabric seller Sonaselection’s Rs.142-Cr IPO subscribed 2.01 times
Rajasthan-based textiles company Sonaselection India has received 2.01 times subscription for its initial public offering (IPO) as of September 21. The INR 141.6-Cr initial public offering, which opened for subscription on September 17, comprises an entirely fresh issue of 1.43 crore equity shares.The Qualified Institutional Buyers (QIBs) portion of the issue was subscribed 1.16 times, while the Non-Institutional Investors (NIIs) segment reached a subscription level of 2 times. The retail portion of the offering was subscribed 2.50 times. The price band for the issue has been fixed at INR 94-99 per share. Choice Capital Advisors is acting as the merchant banker for the transaction.Sonaselection manufactures cotton fabric, stretch fabric, and various cotton and polyester blends. The company operates a manufacturing facility in Bhilwara and generates revenue through manufacturing, job-work for third-party customers, and readymade garments.The company plans to use INR 80-Cr of the net proceeds for the partial repayment of debt, while INR 50.6-Cr will be used for capital expenditure, including the purchase of plant and machinery for its facility.
For FY25, Sonaselection India had reported about INR 316 Cr in Operating Income and about INR 20 Cr in PAT.
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