The initial public offering (IPO) of Sheela Foam on day three was subscribed 5.02 times with investors bidding for 2.63 crore shares against 52.5 lakh shares on offer. The issue was a pure offer for sale by Polyflex Marketing Private which holds 27.75% stake in the company.
Qualified institutional buyers (QIBs) bid for 14.51 times, or for 2.17 crore shares against 15 lakh shares reserved for them. High net worth (HNIs) individuals bid for 37.7 lakh shares against 11.25 lakh shares reserved for them. Retail investors bid for 0.3 times their quota or 7.9 lakh shares against 26.25 lakh shares reserved for them.
On Nov 28, the company raised R153 crore by allotting 20.95 lakh shares to anchor investors at a price of R730 apiece. Among the investors who were allotted shares in the pre-IPO placement include ICICI Prudential FMCG Fund, SBI FMCG Fund, Goldman Sachs India, IDFC Equity Fund, L&T Mutual Fund Trustee and Kotak Midcap.
Sheela Foam ended FY16 with total income of R1,566 crore, up 9.7%, and a PAT of R104.7 crore, up 146%. Total expenses rose to R1,414 crore, an increase of around 3% from the previous year’s R1,370.7 crore.