Sheela Foam, the manufacturer of ‘Sleepwell’ brand of mattresses, plans to raise R510 crore from the primary market. The initial public offer (IPO) is a pure offer for sale by Polyflex Marketing Private which holds 27.75% stake in the company, with a price band of R680-R730 per share.
Bid can be made for a minimum of 20 equity shares and in multiples of 20 shares thereafter. The issue opens on November 29 and closes on Dec 1, the anchor issue will be held one day prior the issue date on November 28.
According to guidelines put out by Securities and Exchange Board of India (Sebi), 50% of the shares are reserved for qualified institutional buyers (QIB) category, 15% for high net-worth individuals (HNIs) and 35% for retail investors. Up to 60% of the QIB portion has been reserved for anchor investors and one-third of the anchor investor portion has been reserved for domestic mutual funds. Five per cent of the QIB category, excluding the anchor investor portion, has been reserved for mutual funds on a discretionary basis.
For the year ending March 2016, the company reported a 9.7% increase in its total income at R1,566 crore from the previous year’s R1,428.2 crore. During the same period, profit after tax (PAT) was up almost 146% at R104.7 crore from the previous year’s R42 crore. Sheela Foam ended FY16 with total expenses of R1,414 crore, up around 3% from previous year’s R1,370.7 crore.
The company manufacturers mattresses under the brand name of Sleepwell. Sheela Foam is also engaged in manufacturing other foam-based home comfort products which are targeted primarily at Indian retail consumers, as well as technical grades of polyurethane foam (PU Foam). The company manufactures PU Foam in Australia through their wholly owned subsidiary, Joyce Foam. Sheela Foam has 11 manufacturing facilities in India and five facilities in Australia.