Sheela Foam makes a strong debut; soars 40% over issue price in intra-day

The stock hit intra-day high of Rs 1,019, up nearly 40% against its issue price of Rs 730 per share on the BSE

Sheela Foam has listed at Rs 860, 18% premium to its issue price of Rs 730 per share on the BSE. LINK

The stock crosses Rs 1,000 mark and hit high of Rs 1,019, up nearly 40% against its issue price within minutes of listing.

At 10:07 am; the stock was trading at Rs 981 on the BSE. On the National Stock Exchange (NSE), the stock was trading at Rs 987, after opened at Rs 860. It touched high of Rs 1,018 and low of Rs 850 so far.

A combined 3.62 million shares changed hands on the counter on the BSE and NSE.

The initial public offering (IPO) of Sheela Foam, manufacturer of Sleepwell brand mattresses which over-subscribed 5 times, got strong response from the qualified institutional buyers (QIBs).

The IPO received bids for 26.7 million shares as against its offer of 5.25 million shares, data compiled by stock exchanges showed. The quota for QIBs was subscribed by 14.5 times. Non institutional investors’ segment received a total subscription of 3.35 times, while retail quota was subscribed by a mere 0.44 times.

The company raised Rs 510 crore through the IPO has fixed issue price at higher end of price band of Rs 680-730 per share.

It was an offer for sale by Polyflex Marketing, the selling shareholder, which had 27.75% stake at the time of filing IPO papers. Hence, the company will not receive any issue proceeds.

Incorporated in 1971, Sheela Foam is one of the leading manufacturers of mattresses in India marketed under its flagship brand "Sleepwell". In addition, it manufactures other foambased home comfort products targeted primarily at Indian retail consumers, as well as technical grades of polyurethane foam (PU Foam) for end use in a wide range of industries.