Sham Foam Limited IPO Overview
Sham Foam Ltd. (SFL) was originally incorporated on June 26, 2020 in Haryana and is primarily engaged in the business of manufacturing, distribution, marketing, and selling of polyurethane foam (PU Foam), mattresses, and other allied home comfort products targeted primarily at Indian consumers. The company operates a vertically integrated business model, covering product design, manufacturing, and distribution, which enables better control over quality, cost, and supply chain efficiency. Its core product portfolio includes PU foam, mattresses, pillows, and cushioning solutions used in furniture, bedding, automotive, apparel, and filtration applications. The company also manufactures industrial-grade PU foam that is used in a wide range of industries in India.
The company is now launching its maiden SME IPO on the BSE SME platform. The IPO consists of 31,14,000 equity shares and aims to raise approximately ₹40 crore at a fixed price of ₹130 per share, with a lot size of 1,000 shares. The IPO opens on 11 August 2026 and closes on 13 August 2026, with listing expected on 18 August 2026 on BSE SME.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Fixed Price – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 11 August 2026 |
| IPO Close Date | 13 August 2026 |
| Allotment Date | 14 August 2026 (Expected) |
| Refund Initiation | 15 August 2026 |
| Credit to Demat | 15 August 2026 |
| Listing Date | 18 August 2026 (Tentative) |
| Issue Price | ₹130 per share (Fixed Price) |
| Face Value | ₹10 per share |
| Lot Size | 1,000 shares |
| Minimum Investment (Retail) | ₹2,60,000 (2 lots = 2,000 shares) |
| Minimum Investment (HNI) | ₹3,90,000 (3 lots = 3,000 shares) |
| Issue Size | ₹40 crore |
| Fresh Issue | 31,14,000 shares |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | 0% |
| Non-Institutional Investors (NII/HNI) | ~50% |
| Retail Individual Investors (RII) | ~50% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is fresh capital — no promoter exit whatsoever. All proceeds will be received directly by the company for business expansion.
Objects of the Issue (Fund Utilization)
Sham Foam plans to deploy the IPO proceeds across manufacturing expansion and working capital. The company proposes to utilise net proceeds towards the following:
- Finance capital expenditure requirements for civil construction and purchase of machinery and equipment for the existing manufacturing facility — ₹13.72 crore
- Partially finance working capital requirements — ₹14.25 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Corporate Makers / NAVIGANT CORPORATE ADVISORS LIMITED
- Registrar to the Issue: Alankit Assignments Ltd.
Promoters & Management
The promoters of Sham Foam are Mr. Rajinder Kumar Jindal, Mr. Sanjeev Kumar Jindal, Ms. Monica Jindal, Ms. Deepika Jindal, and Charming Fashions Private Limited.
As of March 31, 2026, the company had 362 permanent employees on its payroll and an additional 223 contract employees across various departments, including 19 personnel at its R&D laboratories, constituting 5.25% of its total permanent employee strength.
Company Details
Sham Foam is an integrated manufacturer of polyurethane (PU) foam and foam-based home comfort products, catering to both consumer and industrial segments across India. Its mattresses are marketed primarily under the Featherfresh and Restivia brands.
Sectors Served:
- Home Comfort & Bedding (Consumer Segment)
- Furniture & Interior
- Automotive
- Apparel & Sports Goods
- Filtration & Industrial Applications
Key Products:
- PU Foam (Consumer & Industrial Grade)
- Mattresses (Featherfresh & Restivia brands)
- Pillows & Cushioning Solutions
- Foam for Furniture, Automotive, and Apparel
Key Capabilities:
- Vertically integrated business model — product design to distribution under one roof
- In-house R&D laboratory with dedicated research personnel
- Manufacturing facility in Ambala, Haryana with planned capacity expansion
Manufacturing Facility:
- Registered and manufacturing address: Village Rajpura, Tehsil Shahzadpur, Ambala, Haryana — 134202
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹73.89 | ₹2.97 |
| FY25 | ₹81.62 | ₹3.58 |
| FY26 | ₹92.39 | ₹8.65 |
Key Financial Metrics
- In FY26, revenue grew 13% and PAT surged 142% — reflecting a sharp improvement in operational efficiency. EBITDA more than doubled, net worth increased substantially, and borrowings declined by 57%.
- Post-issue P/E ratio: 17.26x | ROE: 51.53% | ROCE: 45.73% | Debt-Equity Ratio: 0.19
- Post-IPO, the paid-up equity capital will increase from ₹8.38 crore to ₹11.49 crore, with a post-issue market cap of approximately ₹149.38 crore.
- Revenue CAGR (FY24–FY26): ~12% | PAT CAGR (FY24–FY26): ~71%
Company Strengths
- Vertically integrated business model covering design, manufacturing, and distribution — enabling better control over quality, cost, and supply chain efficiency.
- Strong brand presence in consumer segment through Featherfresh and Restivia mattress brands
- Exceptional financial turnaround in FY26 — PAT surged 142%, EBITDA more than doubled, and borrowings declined 57%, reflecting a significantly healthier balance sheet.
- Attractive return ratios with ROE of 51.53% and ROCE of 45.73%, combined with a low post-IPO debt-equity ratio of 0.19.
- Entire IPO is fresh issue — no promoter exit; all funds directed towards capacity expansion and working capital
- Dedicated in-house R&D team, with 19 personnel supporting product innovation and quality improvement
Key Risks & Challenges
- The sharp jump in profitability during FY26 — a pre-IPO year — raises questions about sustainability and whether performance may have been window-dressed to fetch a higher IPO valuation.
- Rising trade receivables year-on-year indicate potential stress in collection efficiency and credit management.
- Very young company: Incorporated only in June 2020, the company has a limited operating history of approximately 5–6 years.
- Raw material risk — PU foam is derived from petrochemical inputs; global crude oil price volatility can significantly impact input costs and margins
- Highly competitive and fragmented industry — operates in the same space as established players like Sheela Foam, with intense competition on pricing and distribution
- SME IPO liquidity risk — limited secondary market trading volumes on BSE SME platform; minimum retail investment of ₹2.60 lakh is high for many retail investors
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
