Sonaselection India IPO Opens September 17, Price Band Fixed At ₹94-₹99 Per Share

Mumbai: Sonaselection India Limited will launch its initial public offering on September 17, seeking to issue up to 1.43 crore fresh equity shares. The issue will close on September 21.

The integrated fabric manufacturer has fixed a price band of Rs 94 to Rs 99 per equity share with a face value of Rs 10 each. The anchor investor bidding window will open on September 16.

Minimum Investment

Investors can bid for a minimum lot of 150 equity shares and thereafter in multiples of 150 shares. At the upper end of the price band, retail investors will need at least Rs 14,850 to apply for one lot.

The floor price is 9.40 times the face value, while the cap price is 9.90 times the face value. At the upper price band, the fresh issue could raise approximately Rs 141.57 crore.

Investor Allocation

Up to 50 percent of the offer will be available for qualified institutional buyers. The company, in consultation with the book-running lead manager, may allocate up to 60 percent of this portion to anchor investors.

At least 15 percent of the issue will be reserved for non-institutional investors, while retail individual investors will receive at least 35%. All bidders, except anchor investors, must apply through the Application Supported by Blocked Amount process.

Use Of IPO Proceeds

Sonaselection India plans to use the net proceeds to repay or prepay certain bank borrowings. A portion will also fund the purchase of plant and machinery for its existing manufacturing facility in Bhilwara, Rajasthan.

The remaining proceeds will be deployed for general corporate purposes. Sonaselection India manufactures and processes fabrics, with a focus on value-added products.

Choice Capital Advisors Private Limited is the book-running lead manager for the public issue. Kfin Technologies Limited has been appointed as the registrar.

The company’s equity shares are proposed to be listed on both the BSE and the NSE after the completion of the issue and allotment process, subject to regulatory approvals.