Sonaselection India

The Ticker Tales take

Sonaselection India, incorporated in 2022, makes and processes fabric — 100% cotton, cotton-lycra stretch, cotton blends and polyester blends. It bought an existing textile processing unit in 2022 and commissioned its own cotton fabric processing plant in July 2024, which moved it from doing job work for others to manufacturing and selling its own cloth. The ₹141.57 crore issue is entirely fresh shares, so every rupee raised goes into the company rather than to existing owners — the healthier shape for a first-time applicant. Worth weighing: it is a young company in a commodity trade where margins are thin and depend on cotton prices. Demand built through the week and picked up further on the final day, closing at 1.96 times covered, with retail at 2.40 times, big-ticket investors at 1.98 times and institutions at 1.16 times. The grey market premium stayed flat at just ₹2 throughout, about 2% over the ₹99 issue price. We expected a flat, unexciting debut, so this stayed Neutral. It listed on 24 September at ₹102.31 on NSE, up 3.3%, and ₹102 on BSE, up 3.0% — a touch better than our flat call, though close enough to count as a hit. It kept climbing through the day to hit the upper circuit, closing at ₹107.42 on NSE, up 8.5%. The call direction held; the modest thin-GMP debut we expected just ran a bit hotter once circuit-driven buying kicked in.