Sheela Foam Pvt Ltd, the company behind Sleepwell brand of mattresses, has filed its draft prospectus with capital market regulator SEBI. According to the DRHP, Sheela Foam IPO will mobilize INR510 crore through the offer for sale (OFS) route. As a result, the company will not get any funds from the IPO and all the proceeds will go to selling shareholder Polyflex Marketing Private Limited. Polyflex Marketing is one of the promoters of Sheela Foam and currently holds 13,537,674 shares or 27.75% equity stake in the company.
Sheela Foam IPO will be managed by Edelweiss Financial Services and ICICI Securities while Link Intime will be the registrar.
One of the homegrown success stories, Sheela Foam is entirely owned by promoters and promoter group.
According to the IPO prospectus, the company registered a turnover of INR1,566.8 crore in FY2016 and earned a net profit of INR104.7 crore. The company sells its products under the Sleepwell and Lamiflex brands for the domestic and industrial applications through its sales network of 100 distributors and over 5,000 dealers in India. It claims to enjoy a dominant market share of between 20-23% in the organized Indian mattress market in terms of revenues. Apart from India, the company sells its products in Australia and Canada where it has expanded in the last decade.
Sleepwell joins India’s IPO party
India’s IPO market has seen 13 IPOs so far this year, raising INR9424.6 crore, according to the data compiled by IPO Central. Two more IPOs – Dilip Buildcon and SP Apparels – are going to open for subscription next week. Apart from these two IPOs, there are 16 companies with approvals in place indicating to the strong IPO pipeline in India. While risk appetite has been increasing among investors, not all offers have been successful. Among the most recent, the IPO of L&T Infotech listed at a slight discount, disappointing investors.