What the company does
The company manufactures, markets and distributes flexible polyurethane foam, mattresses, cushions, pillows and other home-comfort products, including products sold under its Featherfresh positioning.
The Ambala facility has stated installed PU-foam capacity of 15,000 tonnes per annum, but the prospectus calculates utilisation against 6,000 tonnes of available cutting and associated-machine capacity. Production rose to 5,257 tonnes and reported utilisation to 87.62% in FY26. The issue-funded programme is intended to lift available cutting capacity to 10,000 tonnes while leaving headline installed capacity unchanged at 15,000 tonnes.
PU foam generated 86.22% of FY26 revenue. Uttar Pradesh, Punjab, Haryana and Delhi together contributed about 72.9%, so product, geography and the single manufacturing site remain more concentrated than the customer base.
Sham Foam was incorporated in 2020. Rajinder Kumar Jindal, Sanjeev Kumar Jindal, Monica Jindal, Deepika Jindal and Charming Fashions Private Limited collectively held the pre-issue capital; the prospectus also identifies Aggarwal Comfort Products Private Limited as a promoter-group entity pursuing a similar business.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY24 | ₹73.73 Cr | ₹4.43 Cr | ₹2.97 Cr | ₹8.88 Cr | ₹10.11 Cr | ₹33.55 Cr |
| FY25 | ₹81.15 Cr | ₹4.69 Cr | ₹3.58 Cr | ₹12.46 Cr | ₹9.22 Cr | ₹36.58 Cr |
| FY26 | ₹92.32 Cr | ₹11 Cr | ₹8.65 Cr | ₹21.11 Cr | ₹3.99 Cr | ₹49.32 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 EBITDA margin
11.91%
Up from 5.78% in FY25 as material cost fell relative to revenue and operating profit expanded.
FY26 PAT margin
9.37%
PAT rose to ₹8.65 crore from ₹3.58 crore in FY25.
FY26 operating cash flow
₹12.78 crore
Cash conversion exceeded PAT, helped by a ₹9.50 crore increase in trade payables.
FY26 receivables + inventory
₹34.90 Cr
₹25.40 crore of receivables and ₹9.50 crore of inventory represented 80.7% of current assets.
FY26 receivable days
93 days
Up from 79 days in FY24 and 88 days in FY25; receivables were 27.51% of FY26 operating revenue.
Unsecured demand loans
₹3.52 Cr
The final prospectus says related and other-party loans were repayable on demand without a fixed schedule.
FY26 debt/equity
0.19×
Long- and short-term borrowings fell to about ₹3.99 crore against ₹21.11 crore net worth.
FY26 top-ten customers
25.06%
Customer concentration improved from 28.02% in FY24; the largest customer contributed 2.89%.
FY26 top-ten suppliers
78.56%
Raw-material sourcing is considerably more concentrated than the customer base.
FY26 capacity utilisation
87.62%
Based on 5,257 tonnes of production and 6,000 tonnes of available cutting-machine capacity, not the 15,000-tonne headline installed capacity.
Post-issue market cap
₹149.38 crore
Derived from 1,14,90,750 post-issue shares at ₹130.
Dilution-consistent P/E
≈17.3×
Based on FY26 PAT and the full post-issue share count; the prospectus's 12.58× uses pre-issue FY26 EPS.
FY26 cash conversion cycle
≈53 days
The prospectus reports 44 inventory days plus 93 receivable days less 84 payable days; supplier credit was a material funding source.
FY28 working-capital gap
₹33.60 Cr
Up from ₹19.17 crore in FY26 and an estimated ₹27.56 crore in FY27; the issue funds ₹8.25 crore in FY27 and ₹6.00 crore in FY28.
Offer-funded capex ordered
0%
The final prospectus says machinery estimates rely on time-limited budgetary quotations, with no orders or definitive vendor agreements in place.
Post-capex available capacity
10,000 TPA
Up from 6,000 TPA of cutting and associated-machine capacity; stated installed foam capacity remains 15,000 TPA.
FY26 contingent liabilities
₹2.00 Cr
The final prospectus records ₹2.001 crore relating to a civil case, principally the pending Feather Fresh trademark dispute.
FY26 reported ROCE
45.73%
Up from 22.56% in FY25. It is a pre-issue measure and should be re-tested after ₹35.01 crore of net fresh capital enters the business.
BSE close-book demand
72,47,000 shares
Official 13 August 5:00 p.m. snapshot: 7,000 QIB, 33,66,000 NII and 38,74,000 retail bids. Derived demand is 2.33× gross or 2.45× net offer; category offered-share fields were blank.
BSE first-day open
₹104 / −20.00%
BSE's official 18 August quote header records a ₹104 opening price versus the ₹130 issue price.
BSE first-day end value
₹98.80 / −24.00%
BSE's 4:00 p.m. header records a ₹109 high, ₹98.80 low and ₹98.80 end-of-session value; the scrip entered a 10-day trade-for-trade period.
What stands out
- FY26 audited revenue rose 13.8%, EBITDA more than doubled to ₹11.00 crore and PAT reached ₹8.65 crore.
- Operating cash flow was ₹12.78 crore in FY26 and borrowings fell to about ₹3.99 crore, improving the balance-sheet starting point for expansion.
- The largest customer contributed only 2.89% and the top ten 25.06% of FY26 revenue, limiting dependence on any single buyer.
- PU-foam utilisation rose to 87.62% on the prospectus's available-capacity measure, providing a clearer operating rationale for additional cutting and associated equipment.
- The entirely fresh issue allocates capital to both plant expansion and working capital rather than to selling shareholders.
Key concerns
- FY26 EBITDA margin doubled to 11.91% while revenue rose 13.8%. Durability depends on product mix, raw-material spreads and whether cost reductions repeat after the issue.
- PU foam contributed 86.22% of FY26 revenue. Polyols, isocyanates and other petrochemical inputs can be volatile, and delayed customer price revisions can reverse margin gains.
- The top ten suppliers provided 78.56% of FY26 purchases. The company has no long-term supply contracts, increasing availability, pricing and bargaining risk.
- Uttar Pradesh, Punjab, Haryana and Delhi generated about 72.9% of FY26 revenue. The single Ambala site adds regional, fire, utility and business-continuity exposure.
- FY26 cash conversion benefited from a ₹9.50 crore increase in trade payables while receivables and inventory also rose. The ₹14.25 crore working-capital allocation is large relative to recent profit and must be tracked through the full cash cycle.
- Trade receivables increased to ₹25.40 crore and 93 days in FY26 from ₹17.12 crore and 79 days in FY24. Five cheque-dishonour cases against the same customer concern an outstanding balance of ₹6.43 lakh, a small amount but direct evidence that dealer-credit collection risk can crystallise.
- ₹3.52 crore of unsecured loans were repayable on demand, and promoters or promoter-group members had mortgaged properties and provided personal guarantees for bank facilities. Post-issue borrowing terms and release or replacement of promoter support need confirmation.
- PU foam is combustible and chemical handling carries worker-safety, fire, emissions and waste-compliance risks. A serious plant incident could disrupt the single manufacturing site.
- The company has a short corporate history and is undertaking ₹14.72 crore of civil works and machinery expenditure based on management estimates that were not independently appraised. Delays, overruns or low incremental utilisation would reduce returns.
- The factory is leased from promoters and used as security for company borrowing. A promoter-group entity has a similar business, increasing related-party, common-pursuit and governance questions.
- BSE SME shares can have limited liquidity, large minimum lots, wide bid-ask spreads and market-maker dependence.
- FY26 operating cash flow was stronger than PAT partly because trade payables increased to ₹21.30 crore and payable days reached 84. The prospectus assumes 82 days in FY27 and 75 in FY28, so faster supplier payment could reduce future cash conversion.
- The projected working-capital gap rises from ₹19.17 crore in FY26 to ₹27.56 crore in FY27 and ₹33.60 crore in FY28. IPO proceeds fund only part of this requirement; the balance depends on internal accruals and continuing borrowings.
- No machinery order or definitive vendor agreement was in place for the ₹14.72 crore capex programme, and quotations may expire. Available cutting capacity is expected to rise from 6,000 to 10,000 tonnes rather than increase the 15,000-tonne headline installed capacity, so execution should be judged on bottleneck relief and incremental output.
- Sheela Foam has filed a civil suit alleging trademark infringement and passing off in relation to Feather Fresh. The matter remains pending, and the prospectus records ₹2.001 crore of contingent liability for a civil case.
- The prospectus reports 45.73% FY26 ROCE, but the denominator predates ₹35.01 crore of net issue proceeds. If commissioning or working-capital deployment is slow, post-issue return ratios can fall even without an operating setback.
What to monitor after listing
- Post-listing price discovery, delivery, liquidity and spreads after the ₹98.80 first-day end-of-session value and during the initial trade-for-trade period.
- Production capacity, utilisation and commissioning progress for the issue-funded civil works and machinery.
- Revenue and gross-margin mix among PU foam, mattresses, branded products, institutional customers and distributors.
- Polyol and isocyanate prices, top-supplier concentration, import content, foreign-exchange exposure and customer price revisions.
- Operating cash flow, trade-payable normalisation, inventory and receivable days and deployment of the ₹14.25 crore working-capital allocation.
- Dealer-credit ageing, bounced-cheque recoveries, receivables as a share of sales and whether the 93-day FY26 collection cycle improves after fresh working-capital funding.
- Repayment or renewal of the ₹3.52 crore unsecured demand loans, outstanding bank facilities and continuing reliance on promoter mortgages and guarantees.
- The FY27–FY28 working-capital plan against the prospectus assumptions of 44 inventory days, 93 receivable days and payable days falling from 82 to 75.
- Debt, finance costs and incremental return on capital after the expansion, rather than the pre-issue FY26 EPS multiple.
- Post-issue ROCE as the ₹14.72 crore capex programme and ₹14.25 crore working-capital allocation move from cash into productive assets.
- The 30-year promoter-property lease through July 2055, rent escalation and security arrangements; transactions with promoter-group entities; the Feather Fresh litigation; fire incidents, insurance, environmental compliance and BSE SME liquidity.
Valuation context
At ₹130, 1,14,90,750 post-issue shares imply a market capitalisation of about ₹149.38 crore. Against FY26 PAT of ₹8.65 crore, the dilution-consistent trailing P/E is approximately 17.3×.
The prospectus quotes 12.58× using pre-issue FY26 EPS of ₹10.33. That calculation does not include the 31,14,000 fresh shares; post-issue EPS is approximately ₹7.53 before any earnings from the new capital.
The issuer-reported 45.73% FY26 ROCE also uses the pre-issue capital base. The more informative comparison will be operating profit and cash flow generated after the new capital has been deployed.
The prospectus compares Sham Foam with Sheela Foam and Wakefit Innovations, but both peers operate at much larger scale with different brands, channels, acquisitions and product mixes. Their multiples are context rather than direct valuation anchors.
A normalized valuation should test a reversal of the FY26 margin step-up, petrochemical-cost volatility, trade-payable normalisation and the return generated on the capex and working-capital deployment.
Sham Foam IPO FAQs
What is the Sham Foam IPO price band?
The stated price band is ₹130 fixed price. Offer terms should be checked against the final prospectus and exchange notices.
When does the Sham Foam IPO open and close?
The IPO is scheduled to open on 11 August 2026 and close on 13 August 2026. The stated listing date is Listed 18 August 2026 on BSE SME.
What is the Sham Foam IPO issue size?
The stated total issue size is ₹40.48 Cr, comprising ₹40.48 Cr of fresh issue and ₹0 Cr of offer for sale.
What is the minimum lot for the Sham Foam IPO?
The stated minimum lot is 2000 shares.
What do the latest Sham Foam financials show?
For FY26, the offer documents report revenue of ₹92.32 Cr, EBITDA of ₹11 Cr and PAT of ₹8.65 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Sham Foam IPO analysis?
FY26 EBITDA margin doubled to 11.91% while revenue rose 13.8%. Durability depends on product mix, raw-material spreads and whether cost reductions repeat after the issue.
How is the Sham Foam IPO valued?
At ₹130, 1,14,90,750 post-issue shares imply a market capitalisation of about ₹149.38 crore. Against FY26 PAT of ₹8.65 crore, the dilution-consistent trailing P/E is approximately 17.3×.