Sleepwell to come up with 500 crore IPO

Sheela Foam Pvt. Ltd., may be coming up with an Initial Public Offering (IPO) in the last quarter of this year, according to media reports. The IPO size is expected to be Rs. 500 crores. 

Sheela Foam Pvt. Ltd., sells mattresses under the Sleepwell brand. 

According to media reports the issue work for the IPO may have begun and the issue will hit the markets before March 2017. Edelweiss and ICICI Securities Ltd., will be the managers for the issue. The funds raised through the IPO are expected to be invested in building additional capacity and new product launches and brand building for its key products. 

Sheela Foam is a leader in Polyurethane(PU) Foam.  With a nationwide presence in manufacturing PU Foam (12 manufacturing facilities) the company has a global marketing perspective  and has more than 100 distributors and around 5,000 dealers. The company exports its products to 25 countries and the major brands under its umbrella are SLEEPWELL - The flagship brand for mattresses and comfort accessories; FEATHER FOAM - A Pure PU Foam; and LAMIFLEX - A superior quality POLYETHER/POLYESTER foam for lamination.

As of now Sheela Foam leads with more than 35% market share in the Flexible PU Foam market in India as well as Australia. Sleepwell in India is competing with brands like Kurlon Entreprises Ltd, Springfit and Springwel Mattresses Pvt. Ltd. 

In what will be another consumer story for investors to invest in, the Sleepwell brand may catch the investors' fancy. 
2016 has been a good year for IPOs with almost 10 companies raising Rs. 6,743 crore in primary market. In 2015 a total of 21 companies had hit the IPO market raising Rs. 13,600 crores.