Sheela Foam gets SEBI nod for IPO

Sheela Foam has received Securities Exchanges Board of India (SEBI) approval for an initial public offering (IPO). The company, which sells mattresses under the Sleepwell brand, is looking to launch a Rs 510 crore IPO before the end of November 2016. ICICI Securities and Edelweiss Financial Services are managing the share sale for Sheela Foam.

The IPO is a pure offer for sale by promoter entities and Sheela Foam will not be raising any primary capital for investing in the business. Sheela Foam filed DRHP on July, 29 2016 with SEBI through an offer for sale by one of its promoters.

On the financial front, revenue from the sale of home comfort products increased 10.96 per cent to Rs 1016.4 crore in FY16. The company’s home comfort products contributed 65.5 per cent revenue in FY16. Sleepwell brand mattresses constituted a share of around 20-23 per cent of the organised Indian mattress market as of FY16, as per CRISIL.

Apart from Sleepwell brand of mattresses, Sheela Foam also makes technical grades of polyurethane foam (PU Foam) for end use in a wide range of industries. Sheela Foam has 12 manufacturing facilities and a nationwide network of more than 100 distributors and around 5000 dealers. The company also exports its products to almost 25 countries.