Sheela Foam IPO
Incorporated in 1971, Sheela Foam is a leading manufacturer of mattresses and polyurethane (PU) Foam in India. The company sells mattresses under the “Sleepwell” brand while it also manufactures other foam-based home comfort products targeted primarily at Indian retail consumers, as well as technical grades of PU Foam for a wide range of industries.
As part of its home comfort range, Sheela Foam offers various products such as mattresses, furniture-cushioning, pillows, cushions, sofa-cum-beds, pillows, bolsters and cushions, sofa-cum-beds and comfort accessories like bed sheets, baby care sheets and mattress protectors. In FY2016, the home comfort business generated INR1,016.5 crore in revenues, constituting 65.6% of the company’s top line.
The company also manufactures and sells technical grade foam to a diverse range of industries, including automotive foam used to manufacture auto parts; reticulated foams utilised in filtration systems; ultra-violet stable foams used for the manufacture of garments, shoes and innerwear; and technical foams that are used in industrial sound absorption systems. Through its Australian business, it also makes PU Foam that is supplied to manufacturers of comfort products and home furniture and industrial PU Foams supplied to manufacturers of auto components, sound absorption systems, medical equipment and food packaging material. In FY2016, revenues from technical and PU foam business stood at INR533.5 crore, or 34.42% of the company’s annual revenue.
Sheela Foam currently owns and operates 11 manufacturing facilities in India. All of its facilities are utilized for manufacturing home comfort products, while five of these facilities also manufacture PU Foam. Three of its facilities located in Greater Noida, Talwada and Hyderabad are ISO:9001 certified. In addition, its fully owned subsidiary Joyce operates five manufacturing facilities in Australia that make PU Foam.
Promoter of Sheela Foam: Sheela Gautam, Rahul Gautam, Polyflex Marketing Pvt. Ltd.
| Sheela Foam IPO details | |
| Subscription Dates | 29 Nov – 1 Dec 2016 |
| Price Band | INR680 – 730 per share |
| Fresh issue | Nil |
| Offer For Sale | INR510 crore |
| Total IPO size | INR510 crore |
| Minimum bid (lot size) | 20 shares |
| Face Value | INR5 per share |
| Retail Allocation | 35% |
| Listing On | BSE, NSE |
| Sheela Foam’s consolidated financial performance (in INR crore) | |||||
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | |
| Total revenue | 1,050.8 | 1,161.4 | 1,271.6 | 1,428.2 | 1,566.8 |
| Total expenses | 1,038.8 | 1,121.8 | 1,235.5 | 1,370.7 | 1,414.8 |
| Profit after tax | 7.7 | 30.8 | 27.8 | 42.7 | 104.8 |
Sheela Foam Ltd
37/2, Site IV, Sahibabad Industrial Area,
Ghaziabad 201010, Uttar Pradesh
Phone: +91 120 4162 200
Fax: +91 120 4162 282
Email: [email protected]
Website: www.sheelafoam.com
Link Intime India Private Limited
C-13 Pannalal Silk Mills Compound,
LBS Marg, Bhandup West, Mumbai – 400 078
Maharashtra, India
Phone: +91 22 2596 3838
Fax: +91 22 2594 6969
Email: [email protected]
Website: http://www.linkintime.co.in
Sheela Foam IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 7 PM) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 1,500,001 | 0.00 | 0.09 | 14.51 |
| NII | 1,125,000 | 0.00 | 0.01 | 3.53 |
| Retail | 2,625,000 | 0.02 | 0.06 | 0.40 |
| Total | 5,250,001 | 0.01 | 0.06 | 5.06 |
Sheela Foam IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status.
You can also check your IPO allotment status from your mobile at
http://linkintime.co.in/ipo
IPO Opening Date: 29 November 2016
IPO Closing Date: 1 December 2016
Finalisation of Basis of Allotment: 6 December 2016
Initiation of refunds: 7 December 2016
Transfer of shares to demat accounts: 8 December 2016
Listing Date: 9 December 2016
Listing Price on NSE: INR860 per share (profit of 17.8% over IPO price)
Closing Price on NSE: INR1,032 per share (profit of 41.4% over IPO price)
Is this really happening?? Ipo mkt silent after the crash
Am not sure but this is a decent company, Laurus is also good. Rest depends on how greedy are promoters. Investors need to look beyond IPOs too. The correction has made so many stocks attractive but investors wouldn’t buy them now.
Another very high price band in sheela foam ipo
Another greensignal, very high price band in sheela foam ipo
Not to subscibe at all at these price.
the fair value is apprx 200 at highest…
Sanket, wonder how you arrived on 200. Your fair value is too good to be true. I’ll buy truck loads if this price.
Look at how the company has grown in recent years. Table show sales increased 50% in 5 yrs but profits – more than 100 crore from 7.7 crore. Not reliable at all. No wonder the promoters were planning this IPO for all these years and now need to bring the offer even though the market has tanked.
I haven’t yet checked the rates in grey market if there are. Any premium???
sir, your analysis is accurate and I have a feeling this note ban will break Sheela Foam’s business
Grey market is dull, very less trades in Sheela foam IPO. Some brokers are accepting applications at 400 500 kostak rates.
Flop ipo, people will lose money in this sheela ki jawani. Better to invest in laurus
QIBs subscribing in loads. I know the view is negative for Sheela Foam but QIB funding means there is something retail is missing. Experts any second thoughts???
Nothing changes for me. I have no doubt that Sheela Foam will get badly impacted by demonetization. You can see yourself that shopkeepers are sitting idle, then where is demand. Just wait and it will be avaialbel at below IPO price in some time.
Laurus is a much better option for IPO investors.
Really surprised at QIB subscription. Late shot and well played!
Allotment still not updated on linkintime’s site…
Viraj, did you apply in Sheela Foam? I thought you didn’t.
Allotment status out now, I had applied for a single lot and got that.
Everyone got allotment in retail due to undersubscription, so no surprises…
@Bull_Sinha where is your analysis now…commenting with incomplete knowledge is not good at all.
To be honest, I’m speechless at this listing. There is listing gain but we can only go by the logic. The market is clearly neglecting the effect of note ban.
what is listing prize
Great listing! happy that my risk was rewarded very well. I should have applied for more, this was the time when sentiments were down and everyone was afraid of investing.
Strange market, no point in analyzing IPO as everything is driven by FIIs/DIIs. I missed investing in this but really feel SHeela Foam is now beyond the fundamentals. PE ratio of more than 40! Crazy!!
Absolutely right Feroz. There is little we can do more than just try to follow the market and it has its own ways. This is why I don’t understand the attacks some peolple make on others on forums. Ultimately, everyone is responsible for their own investments.
Btw, you haven’t missed anything big, Sheela Foam is down today 🙂
And keeps falling, down 4% again today.