Mumbai: Shares of Sheela Foam Ltd jumped 41.37% on debut on Friday after its Rs510 crore initial public offer (IPO) was subscribed more than five times when it closed last week.
It is the first IPO to get listed after the markets were hit by the double whammy of a surprise demonetisation move and unexpected win by Republican Donald Trump in the US presidential elections, which triggered outflows from foreign institutional investors.
Sheela Foam shares opened 17.81% higher on the BSE at Rs860 a piece compared to the issue price of Rs730 per share. At 10.05am, they were up 39.6% at Rs1,018.75, while the benchmark 30-share Sensex index traded 0.14% higher at 26,731.72 points. Earlier in the day, the shares touched a high of Rs1,018.75 and a low of Rs860, respectively.
The scrip closed at Rs1032, posting a premium of 41.37% over the issue price of Rs730 . The issue was priced at the upper end of its price band of Rs680-730 per share,
The IPO of the maker of Sleepwell brand of mattresses got off to a slow start but comfortably sailed through by the time it closed, receiving bids for 5.09 times the shares on offer. The issue is an offer for sale, with Polyflex Marketing Pvt. Ltd, the firm that controls Sheela Foam, seeking to raise Rs510 crore through the issue.
ICICI Securities Ltd and Edelweiss Financial Services Ltd are managing the Sheela Foam share sale. Sheela Foam has 11 manufacturing facilities in India and five in Australia. It has a nationwide network of more than 100 distributors and around 5,000 dealers. The company also exports its products to almost 25 countries, according to its website.
Apart from the Sleepwell brand, the company also makes other foam-based home comfort products targeted primarily at Indian retail consumers as well as technical grades of polyurethane foam (PU foam) for end-use in a wide range of industries