IPO : Sheela Foam Limited

Company & Business Profile

Sheela Foam Limited was incorporated in 1971, and over the last two decades, has developed Sleepwell as an overarching brand associated with comprehensive and quality home comfort solutions.Company believes that the recall of “Sleepwell” brand has been established by an extensive suite of products that range from baseline bedding and furniture cushioning material to ergonomically tailored offerings, an emphasis on quality control and focused brand building.

Objects of the Issue

The objects of the Offer for sale from the promoter is offering shares for sale. The Company believes that the listing of the Equity shares will enhance its brand name and provide liquidity to the existing shareholders. Listing will also provide a public market for the Equity Shares in India.

Listing 

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Outlook & Valuations

The issue has been offered in a price band of  Rs 680-730 per equity share. At the upper price band the stock is available at P/E  of 27(x) based on FY17E financials. Industry composite PE for the company stands at 40(x). However, the RoE for the stock is 31% for FY16. We have “3 star” rating for the issue.

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