Sheela Foams IPO lists at a premium of 39%

Maker of India’s most loved mattresses brand ‘Sleepwell’ has listed with a massive premium of close to 39 per cent on the bourses. The Rs 510-crore initial public offer was oversubscribed 5.09 times on December 1, the last day for subscription. The issue was opened on November 29.

It has fixed issue price at higher end of price band of Rs 680-730 per share. However, the shares were listed at Rs 930 on the exchanges. Soon after its listing the stock surged higher in trade to hit an intra-day high of Rs 1018.75 on BSE.

Sheela Foam has increased 15 per cent with respect to open price and was trading at Rs 987.65 at the time of writing this report.

The new issue was the first of a kind in the mattresses space due to no other listed player. Polyflex Marketing, the company that controls Sheela Foam, has sold a part of its holding through this IPO.

Company is the leader in the segment it operates with around 20-23 per cent market share in the organised mattress markets via its flagship brand ‘Sleepwell’. Company manufactures products such as pillows, mattresses, protectors, bolsters, back cushions, sofa-cum- beds, bedsheets, and baby-care sheets, as well as furniture cushioning products.