Sheela Foam, owner of mattress brands Sleepwell and Kurlon, on October 8 announced the acquisition of 10.5 percent stake in House of Kieraya Ltd, which runs furniture and lifestyle rental business brand Furlenco, for Rs 107 crore, the company said in an exchange filing.
Following the announcement of the deal, shares of the Sheela Foam was trading higher as it rose 3.16 percent to Rs 900.15 on NSE at 14:56 pm.
The firm said the purchase is a related party transaction and “promoter/promoter group/group companies do have any interest in the entity being acquired as they are the director of the target company. The transaction is completely on an arm’s length basis”.
The company said it does not need any regulatory approval for the transaction and the deal will be completed by October 14, 2024.
Furlenco is a leading furniture company in the online segment with a strong presence in Mumbai, Delhi NCR, and Bengaluru. It was founded in 2012 by Ajith Mohan Karimpana and it is today one of the fastest growing furniture companies in India and is a tech-driven business, the filing said.
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