Mumbai -- Mattress manufacturer Sheela Foam plans to raise up to Rs.500 crore ($74m) through an initial public offering (IPO) by March 2017, according to the Indian press.
LiveMint, the online version of Indian daily newspaper Mint, said Edelweiss Financial Services and ICICI Securities will manage the process, which it said, had already begun.
“The initial share sale will be majorly a primary fund-raising effort, however, the promoters might also sell some part of their shareholding through an offer for sale,” an anonymous source told the paper.
Sheela Foam is looking to file share-sale documents with markets regulator, the Securities and Exchange Board of India, by the next quarter, and the company might look to launch the IPO before March 2017, said a second source who also requested anonymity.
“They will use the funds to invest in additional manufacturing capacity and new product development,” according to the second source, adding that some funds will also be allocated for further brand building ahead of its IPO.
In response to the IPO rumours, md Rahul Gautam told UTECH-polyurethane.com: "At this time we have nothing to share. While an IPO is one of the many avenues we could choose to pursue, currently we are focused on building the business."
UTECH-polyurethane.com interviewed Sheela Foam's Gautam. In the article, Gautam talks of trends and the importance of consumer engagement with PU potential.
As we also reported, Sheela Foam took delivery of an Opus Technical vertical vacuum flexible foam machine for installation in New Delhi, India earlier this year.
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XE Currency conversion: June 13 2016