A Haryana-based PU foam and mattress maker opens its Rs 40.48 crore BSE SME issue on August 11
Sham Foam Ltd. (SFL) makes polyurethane foam (PU foam), mattresses and allied home comfort products from a base in Haryana. It is a fairly young company — incorporated in June 2020 — that has scaled quickly and is now heading to the SME market to fund its next phase.
The product basket has two sides. On the consumer side, SFL sells mattresses, pillows, furniture cushions and cushions primarily under its own brands — Featherfresh (pillows and cushions) and Restivia (mattresses). The mattress range includes pure foam models as well as hybrid mattresses that combine spring and rebonded foam, with customisation possible per customer preference.
On the industrial side, the company supplies PU foam cores and customised foam grades to the mattress and furniture industry, plus applications in sports products, seat covers, shoes, innerwear, jackets and related apparel. This is a genuinely broad addressable market — foam turns up in more products than most people realise.
SFL positions itself as a full-stack vertically integrated company, controlling design, engineering, manufacturing, distribution and customer experience in-house. Some finished products like pillows are made on a job-work basis through third-party manufacturers to customer specs, but the core PU foam production is handled internally.
The company has customer presence across 13 states — Bihar, Chandigarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand — with a bias toward North India. Distribution and brand-building outside this footprint is likely to be one of the near-term growth drivers.
The Indian mattress market is expanding, driven by rising disposable incomes, urbanisation and the shift from unbranded to branded products. However, it is a highly competitive and fragmented segment, with mainboard giants like Sheela Foam (Sleepwell), Wakefit, Duroflex, Kurl-on and Peps at the top, and hundreds of regional and unbranded players below.
As of June 30, 2026, SFL had 85 employees on its payroll, with contract workers hired as needed — a small team for a company scaling revenue at this pace.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | August 11, 2026 |
| Issue Closes | August 13, 2026 |
| Listing | BSE SME |
| Issue Type | Fixed Price |
| Issue Price | Rs 130 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 40.48 crore |
| Fresh Issue | 31,14,000 shares |
| Lot Size | 2,000 shares (multiples of 1,000 thereafter) |
| Min. Retail Investment | Rs 2,60,000 |
| Post-IPO Market Cap | Rs 149.38 crore |
| IPO Constitutes | 27.10% of post-IPO equity |
| BRLMs | Corporate Makers Capital, Navigant Corporate Advisors |
| Registrar | Alankit Assignments Ltd. |
| Market Maker | JSK Securities & Services Pvt. Ltd. |
From the fresh proceeds, Rs 14.72 crore is earmarked for repayment or prepayment of borrowings, Rs 14.25 crore for part-financing working capital, and Rs 6.04 crore for general corporate purposes, along with capex on civil construction and machinery. The issue is underwritten to the tune of 15% by Corporate Makers and 85% by JSK Securities.
Post-IPO, paid-up equity moves from Rs 8.38 crore to Rs 11.49 crore.
The promoter average cost of acquisition is Rs 0.22 and Rs 11.11 per share. This reflects earlier share issuances at a fixed price of Rs 510 per share in March 2024 and two bonus issues — 44-for-1 in July 2024 and 1-for-50 in July 2025.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 73.89 | 81.62 | 92.39 |
| PAT | 2.97 | 3.58 | 8.65 |
| PAT Margin | 4.02% | 4.41% | 9.37% |
| RoCE | 23.79% | 22.56% | 45.73% |
Revenue has grown from Rs 73.89 crore in FY24 to Rs 92.39 crore in FY26 — steady growth, driven by higher mattress and cushion volumes and expansion into more states.
The bottom line has moved sharply in the final year. PAT was flat at around Rs 3 crore in FY24 and FY25, then more than doubled to Rs 8.65 crore in FY26. PAT margin has jumped from 4.41% to 9.37%, and RoCE has doubled from 22.56% to 45.73% — all in a single year right before the IPO.
This pattern is the standout number. Foam and mattress manufacturing is a competitive, price-sensitive segment where raw material (polyol, TDI) makes up most of the cost. A margin doubling in one pre-IPO year, without a matching revenue jump, is the kind of pattern that deserves close reading of the RHP to understand what changed.
Average EPS over three years is Rs 6.06 and average RoNW is 35.63%. At the fixed price of Rs 130, the P/E works out to 17.26x on FY26 earnings and a much higher 41.67x on FY25 — a very wide gap that shows how much the valuation depends on FY26 being repeatable. The issue is priced at a P/BV of 5.16 on pre-IPO NAV and 2.42 on post-IPO NAV of Rs 53.61 per share.
Listed peers Sheela Foam and Wakefit Innovations trade at P/E multiples of 36.3 and 21.5 respectively (as of August 7, 2026) — though these are much larger, established mainboard players and not strict apples-to-apples comparisons.
Risks to Consider
The FY26 profit jumped sharply. PAT margin doubling from 4.41% to 9.37% in a single year, while revenue grew only about 13%. Investors should read the RHP carefully to understand whether this reflects a genuine mix shift, a one-off gain, or something that won’t repeat.
Rising trade receivables year-on-year are a red flag. This can mean customers taking longer to pay, which ties up working capital and raises bad-debt risk. The Rs 14.25 crore earmarked for working capital reflects this reality.
Customer concentration is a typical risk for SME foam and mattress makers — a handful of dealers and B2B customers likely drive most of the revenue.
The segment is highly competitive and fragmented, with pricing power hard to build. Mattress buying in India is heavily brand-driven at the top and price-driven below, and SFL is caught in the middle — not yet a household name but priced above unbranded competition. Input cost pressures — polyol, TDI, isocyanates — that aren’t passed through can hurt margins fast.
Geographic concentration in North and Central India is another concern. Any regional slowdown or logistics disruption could hit the business.
The Big Picture
Sham Foam has shown steady revenue growth and expanded into 13 states in a young 5-year history. The dual-segment presence — consumer brands (Featherfresh, Restivia) and industrial PU foam — gives it some diversification, and vertical integration is a genuine positive for cost control.
That said, the sharp FY26 profit jump right before the IPO in a fragmented and competitive segment, coupled with rising trade receivables, raises red flags. Priced at 17.26x FY26 and 41.67x FY25, the issue looks aggressively priced on average earnings, note analysts.
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