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Sheela Foam IPO receives poor response on day one

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The IPO subscribed just 1%

Sheela Foam (SFL)'s initial public offer (IPO) received poor response on first day of bidding for the IPO. The IPO received bids for just 73,580 shares compared with 52.50 lakh shares on offer, as per the data available on NSE as at 16:30 IST today, 29 November 2016. The IPO was subscribed meager 1%.

The company plans to raise Rs 510 crore through the IPO. The price band of the offer was fixed at Rs 680 to Rs 730 per share. The issue opened for bidding today, 29 November 2016 and will close on 1 December 2016.

Ahead of the IPO, the company raised Rs 153 crore by allotting 20.95 lakh shares to 29 anchor investors at a price of Rs 730 per share, the higher price of the IPO price band.

The IPO consists of offer for sale by the selling shareholder, namely a promoter company, Polyflex Marketing Pvt Ltd. The objects of the offer is to achieve the listing benefits of equity shares of the company on the stock exchanges and to enhance the visibility and brand image among the existing and potential customers and provide liquidity to the existing shareholders.

Sheela Foam reported consolidated net profit of Rs 65.95 crore on net sales of Rs 795.50 crore for the six months ended 30 September 2016.

Promoted by Sheela Gautam, Rahul Gautam and Polyflex Marketing, Sheela Foam (SFL) is engaged in manufacturing of home comfort products and technical foam products. SFL is one of the leading manufacturers of mattresses in India, marketed under its flagship brand, Sleepwell. In addition, it manufactures other foam-based home comfort products targeted primarily at Indian retail consumers, as well as technical grades of polyurethane (PU) foam for end use in a wide range of industries. Its home comfort line comprises of products such as mattresses, furniture-cushioning, pillows, cushions, sofa-cum-beds as well as PU foam cores utilized for manufacturing finished home comfort products. Some of the brands under which SFL sells PU foam cores include Splash, Mystiq, Rainbow, Flexituf, Champion and Indigo, which vary in terms of thickness, density and grade.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 29 2016. 16:47 IST