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Sheela Foam IPO

Industry: Personal Care | Prospectus

What Are Analysts Saying?

Jainam Research remain 'Neutral' to Sheela Foam IPO
Jainam Research, 29 Nov 2016
Jainam Wealth are \'NEUTRAL\' to the Sheela Foam Ltd IPO as we feel the upcoming 1-2 quarters can be impacted due to demonetization. Price Band Rs.680 - 730. Issue open on 29th November and close to 01st December.

Sheela Foam IPO: SPA Securities recommend subscribing to this issue with long term perspective
SPA Securities, 29 Nov 2016
According to SPA, at the upper end of the price band, the stock will trade at PE multiple of 27x its FY17E which is reasonable compared to many consumer stocks which are trading at valuation of >30x TTM earnings.

Sheela Foam IPO: Strictly for investors with high risk appetite & long term perspective
Hem Securities, 29 Nov 2016
At price band of Rs 680-730,p/e multiple will turn out to be 25-27 on post issue annualized H1FY17 eps of Rs 27.03/share of company. Although co\'s fundamentals looks strong, but looking after present investment sentiment, issue is strictly \'Subscribe\' only for people with high risk appetite & long term perspective.

Sheela Foam IPO: Way2Wealth are 'Neutral' on the issue
Way2wealth, 28 Nov 2016
According to Way2wealth, this is a full offer for sale by the promoter group. No fresh money will be inducted into the company. GST holds a huge potential for the company in the future but we believe investors should wait and watch for stability of margins at these level.

Sheela Foam IPO: Only serious long term investors may opt for this issue
SMC, 28 Nov 2016
According to SMC, the company has a significant opportunity to leverage its Sleep Well brand to further improve its market share. Given the present secondary market condition, only serious long term investors, who want to add some new business into their portfolio, may opt the issue.

Issue Details

Open Date: 29 Nov 16 Min Application Amount: Rs. 13600
Close Date: 01 Dec 16 Min bid (No. of shares): 20
Offer Price: Rs. 680 Issue Size: Rs. 510 Cr
Listing Exchanges: BSE, NSE Issue Size (Shares):

About the Company

"Incorporated in 1971, Sheela Foam Ltd is a leading manufacturer of mattresses and other foam-based home comfort products in India. They sell their products under the brand Sleepwell, Feather Foam, and Lamiflex.

Sheela Foam offers mattresses, pillows, mattress protectors, bolsters, back cushions, sofa-cum beds, bed-sheets, and baby care sheets, as well as furniture cushioning products. Company's products are mainly used in residential purpose, hotels, hospitals, and educational institutions. They sell its products through distributors, retail dealers, and multi-branded outlets, as well as exports its products to approximately 32 countries. They have 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 March 31, 2016

Competitive Strengths:

1. Well recognised and established brand built over consistent quality and innovation
2. Extensive and well developed pan-India salesand distribution network
3. Quality manufacturing capabilities and technological innovation
4. Integrated operations and economies of scale
5. Well qualified and professional management"

Objective of the Issue

"Objects of the Issue:

The objects of the Offer are to:

1. Achieve the benefits of listing the Equity Shares on the Stock Exchanges;
2. Enhance visibility and brand name and provide liquidity to the existing shareholders."