Moneycontrol previously stated that the potential acquisition of Kurlon Enterprise, a company renowned for producing mattresses under the Kurl-on brand, would enhance the company's market presence.
The promoters are reducing their stake in the company via the IPO, says Gautam. The promoters will hold 85.5 percent stale post IPO.
Recommending it to subscribe with caution, Choice India agrees that there is a bleak prospect of the issue to enjoy listing gains. It says the issue is favourable for investors with long term horizon.
Its home comfort line comprises of products such as mattresses, furniture-cushioning, pillows, cushions, sofa-cum-beds as well as PU foam cores utilised for manufacturing finished home comfort products.
Sheela Foam had filed draft papers with Sebi in July and received the market regulator's approval earlier this month.