Sonaselection India IPO Launches September 17, Priced ₹94-₹99 Per Share

Sonaselection India Limited will launch its initial public offering (IPO) on September 17, with the issue set to close on September 21. The company aims to issue up to 1.43 crore fresh equity shares, with a face value of ₹10 each.

The price band for the IPO has been fixed at ₹94 to ₹99 per equity share. The anchor investor bidding window will open on September 16, a day before the IPO launch.

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 ₹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 ₹141.57 crore. The company has allocated up to 50 percent of the offer for qualified institutional buyers, with up to 60 percent of this portion potentially going 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 (ASBA) process.

The net proceeds from the IPO will be used to repay or prepay certain bank borrowings, as well as to fund the purchase of plant and machinery for the company's 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, while 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.

This IPO is a significant development for Sonaselection India, as it seeks to raise funds to drive its business growth and expansion plans. The company's decision to list its shares on both the BSE and NSE will provide investors with greater liquidity and accessibility.

The Indian textile industry has been growing steadily, driven by increasing demand for value-added products. Sonaselection India's focus on manufacturing and processing high-quality fabrics positions it well to capitalize on this trend.

With the IPO set to launch on September 17, investors will be closely watching the company's progress and prospects for future growth.

In conclusion, the Sonaselection India IPO is an important event for the company and the Indian textile industry as a whole. The company's plans to use the net proceeds to drive business growth and expansion will be closely monitored by investors and industry observers alike.

The IPO's success will depend on various factors, including market conditions and investor sentiment. However, with its strong focus on value-added products and commitment to quality, Sonaselection India is well-positioned to capitalize on the growing demand for textiles in India and beyond.