Sonaselection India Makes a Strong Market Entry With Over 3% Premium, Shares Hit Upper Circuit

Mumbai: Shares of Sonaselection India Ltd made a positive stock market debut on Thursday, September 24, listing more than 3% above their IPO issue price of ₹99. The textile company’s shares later climbed to the upper circuit limit on both the BSE and NSE.

On the BSE, Sonaselection India shares opened at ₹102, a gain of about 3% over the issue price. The stock then rose to ₹107.09, its upper circuit limit for the day and 8.17% above the IPO price.

The shares listed at ₹102.31 on the NSE, a premium of 3.34%. They subsequently touched the day’s highest permissible price of ₹107.42, representing a gain of 8.50% from the issue price.

Following the listing, the company’s market valuation stood at ₹608.58 crore.

Sonaselection India IPO Details

The ₹141.6 crore Sonaselection India IPO was subscribed two times by the close of bidding on Monday. The company had set a price band of ₹94 to ₹99 per equity share.

The public issue consisted entirely of a fresh issue of 1.43 crore shares, valued at ₹141.57 crore at the upper end of the price band. There was no offer for sale, meaning the issue did not include shares sold by existing shareholders.

Sonaselection India plans to use the IPO proceeds to repay debt, purchase plant and machinery for its manufacturing facility, and meet general corporate expenses.

What the Textile Company Does

Founded in 2022, Sonaselection India manufactures and processes fabric at its facility in Bhilwara, Rajasthan. The city is a major textile centre, offering access to skilled workers, established suppliers and supporting industries.

The listing gains gave IPO investors an early return, while the upper circuit restricted any further rise in the share price during Thursday’s trading session.