Sham Foam Limited
Sham Foam Limited is an Ambala-based manufacturer of polyurethane foam, mattresses, and allied home comfort products, listing on BSE SME with a fixed-price IPO at ₹130 per share to raise ₹40.48 crores.
Overview
About the Company
Sham Foam Limited, incorporated in 2020 and headquartered in Ambala, Haryana, is engaged in the manufacturing, distribution, marketing, and sale of polyurethane (PU) foam, mattresses, and other home comfort products primarily for the Indian market. The company also produces industrial-grade PU foam for sectors such as furniture, apparel, sports goods, and automotive. Its product range includes mattresses, pillows, cushions, and furniture cushioning sold under the Featherfresh and Restivia brands. The company operates as a vertically integrated business, managing the full value chain from design and engineering through manufacturing to distribution. Its manufacturing facility in Ambala spans over 2,04,460 sq. ft., holds ISO 9001:2015 and BIS (IS 7933:2022) certifications, and has an installed foam production capacity of 15,000 TPA. The company distributes across 13 states through a network of over 1,300 dealers.
Company Details
📋 Objects of Issue (Use of Proceeds)
- › Funding capital expenditure for civil construction and procurement of machinery and equipment at the existing manufacturing facility u2014 estimated at u20b914.72 crore.
- › Partially meeting the company's working capital requirements u2014 estimated at u20b914.25 crore.
- › Meeting general corporate purposes u2014 estimated at u20b96.04 crore.
✅ Strengths
- ✓ The company runs a fully accredited in-house manufacturing facility in Haryana equipped with technology-driven processes.
- ✓ A vertically integrated business model covers the entire value chain from product design and engineering to manufacturing and distribution.
- ✓ The company achieved a strong Return on Equity of 51.53% in FY26.
- ✓ A well-established pan-India distribution network spans 13 states through over 1,300 dealers.
- ✓ The company has forged long-standing relationships with its dealer network, ensuring consistent demand.
- ✓ Long-term debt has been significantly reduced, bringing the debt-to-equity ratio down to a low 0.19x.
- ✓ Management brings considerable experience and domain expertise to the business.
- ✓ Consistent focus on quality assurance and timely delivery reinforces customer trust.
⚠️ Risks
- ! The company is involved in an ongoing legal dispute with Sheela Foam involving a claim of approximately u20b9536.42 Lakh.
- ! Raw material costs are highly volatile and account for more than 78% of revenue, posing a risk to profitability.
- ! All manufacturing operations are concentrated at a single facility in Haryana, creating significant concentration risk.
- ! The primary manufacturing facility is situated on leased premises, which could impact operations if the lease is not renewed.
- ! High trade receivable days of 93 days exert pressure on working capital management.