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Sheela Foam's Rs 510 crore IPO witnessed a healthy over-subscription of 5.09 times. (Representational Picture)Reuters file

Mattress maker Sheela Foam on Friday made a stellar debut in the exchanges with its shares listing at Rs 860 per share, 18 percent over its issue price.

At 11.09 am, the share price of the company was up 41.37 percent to trade at Rs 1,032 at National Stock Exchange (NSE).

The company, which owns the popular mattress brand Sleepwell, had its Rs 510 crore initial public offering (IPO) between November 29 and December 1. It had priced its issue in Rs 680-730 range and witnessed a healthy over-subscription of 5.09 times.

While the quota for qualified institutional buyers (QIBs) was oversubscribed by 14.51 times, non-institutional investors' quota saw 3.3 times subscription. However, retail investors' quota was undersubscribed at 44 percent.

According to reports, Sheela Foam had raised around Rs 153 crore by allotting shares to anchor investors like Fidelity, Goldman Sachs, East Spring, HDFC MF (mutual fund), SBI MF, ICICI Prudential MF, Premji Investment, IDFC MF and Sundaram MF.

The Sleepwell brand had a market share of around 20-23 percent of the organised mattress market in India by the end of last financial year. Sale of home comfort products constituted 64.5 percent of its total revenue during last fiscal.

Sheela Foam has seen its revenue grow at a compounded annual rate of 10 percent in the last four years with profit growth of 9 percent, the Business Line reported. Its consolidated revenue was at Rs 1,550 crore with a net profit of Rs 104.7 crore during this period. Sleepwell brand of the company competes with Kurl-on and Duroflex in the mid and high-end segment in the domestic market.