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Sleepwell parent looks to raise $75 mn via IPO, hires bankers

By Anuradha Verma

  • 13 Jun 2016
Sleepwell parent looks to raise $75 mn via IPO, hires bankers

Sheela Foam Pvt Ltd, which sells mattresses under the Sleepwell brand, is looking to raise approximately Rs 500 crore ($75 million) through an initial public offering by March next year, according to a report.

The company has also appointed Edelweiss Financial Services Ltd and ICICI Securities Ltd as bankers to manage the process, Mint reported on Monday citing people privy to the matter it didn’t name.

The proposed share sale will be majorly a primary fund raising effort. However, promoters of the company may also look at selling part of their stake through an offer for sale, the report said.

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An emailed query sent to the company's spokesperson seeking information did not elicit any response by the time of filing this article.

Sheela Foam sells foam, coir and spring mattresses under the Sleepwell brand and industrial application mattresses under the Feather Foam brand.

It competes with sector leader Kurlon, which controls about one-third of the total market, Duroflex India and Coirfoam (India). There are also international brands like Raha, Hastens, Simmons and SpringAir present in India.

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Sheela Foam is looking to file documents for the public issue with the capital markets regulator Securities and Exchange Board of India by the next quarter. It is targeting to float the issue by March 2017, the report said.

The mattress maker plans to use the funds to be raised to increase manufacturing capacity, develop products and build its brand.

Led by Rahul Gautam, Sheela Foam has 12 manufacturing facilities, about 100 distributors and 5,000 dealers. It also exports to almost 25 countries, according to its website. In 2005, it had acquired the polyurethane and polystyrene foam business of Australia-based Joyce Foam.

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