Sheela Foam, maker of Sleepwell mattresses, has filed draft papers with markets regulator Sebi to raise Rs 510 crore through an initial public offering.
At a face value of Rs 5, an unspecified number of shares will be sold to public at a price band to be decided later. The firm with an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 192.95 crore would not receive any proceeds from the initial public offer (IPO). Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue.
Apart from its flagship brand Sleepwell, Sheela Foam also manufactures foam-based home comfort products like mattresses, furniture-cushioning, pillows, cushions, sofa-cum-beds.
According to Crisil, Sleepwell branded mattresses constituted a share of around 20-23 per cent of the organised Indian mattress market during 2015-16.
Over the past few months, IPOs from companies with a consumer focus have been a huge success with even retail investors showing great interest.
Public issues of Dr Lal Path Labs, Narayana Hrudayalaya, Thyrocare Technologies, Ujjivan Financial Services, InterGlobe Aviation – IndiGo’s parent, Parag Foods, Mahanagar Gas and Coffee Day Enterprises, which runs Cafe Coffee Day outlets, have attracted considerable investor interest.
“Investors seem to have realised that B2C companies dealing with consumer products or services are worth investing in because they play a major role in Indian consumption story which the world is buying,” a market analyst said.
“What is even more heartening is the fact that the retail investor has returned to the primary market, at least as far as the consumer brands are concerned,” he added.