New listing: Sheela Foam debuts at 18% premium over issue price

Moneycontrol Bureau Shares of Sheela Foam was listed on the exchanges at Rs 860 per share, up 18 percent over its issue price of Rs 730. The sleepwell mattress maker’s issue was open for subscription from November 29 to December 1. With price band of Rs 680-730 per share, the Rs 510-crore initial public offer was oversubscribed 5.09 times on December 1.

Out of total issue size, Sheela Foam, on November 28, had raised around Rs 153 crore by allotting shares to anchor investors like Fidelity, Goldman Sachs, East Spring, HDFC MF, SBI MF, ICICI Prudential AMC, Premji Investment, IDFC MF and Sundaram MF.

Most analysts, however, did not think the IPO will give any listing gains considering current market conditions but had recommended subscribing the issue for medium to long term perspective.

Incorporated in 1971, Sheela Foam (SFL) manufactures foam-based 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. Some of the brands under which it sells PU foam cores include Splash, Mystiq, Rainbow, Flexituf, Champion and Indigo, which vary in terms of thickness, density and grade. It has a pan India distribution network that consists of over 100 exclusive distributors, over 2,000 exclusive retail dealers and over 2,500 multi-brand outlets, as on September 30, 2016.