1) Sleepwell maker plans to launch Rs510 crore share sale this month
- Sleepwell maker to launch Rs 510crs IPO: Sheela Foam Pvt. Ltd, which sells mattresses under the Sleepwell brand, is looking to launch a Rs510 crore initial public offering (IPO) before the end of this month, according to two people aware of the plan. “They (Sheela Foam) have almost completed their investor road shows and they are looking at launching the deal in the second half of the month. They want to do it before the end of November as December tends to be a difficult time to launch a deal given that in the second half of the month investors in the West are on leave for year-end festive holidays,” said the first person cited above, requesting anonymity. “If one is not able to launch in this window, then they have to wait till January for launch.” ICICI Securities Ltd and Edelweiss Financial Services Ltd are managing the share sale for Sheela Foam.
- About Sheela Foam: In addition to its Sleepwell brand of mattresses, Sheela Foam, which was incorporated in 1971, also makes other foam-based home comfort products targeted primarily at Indian retail consumers, as well as technical grades of polyurethane foam (PU Foam) for end use in a wide range of industries. Sheela Foam also has a presence in Australia, manufacturing PU foam through its subsidiary Joyce Foam Pty Ltd. The company’s home comfort line comprises of products such as mattresses, furniture-cushioning, pillows, cushions, sofa-cum-beds, as well as PU foam cores used for manufacturing finished home comfort products.
- IPO is only offer for sale by promotors: The IPO is a pure offer for sale by promoter entities and Sheela Foam will not be raising any primary capital for investing in the business. “The Company has filed DRHP on 29th July 2016 with SEBI for a Public Issue of Rs. 510 crore through an offer for sale by one of its promoters. The timing of issue will be decided by company and merchant bankers based on Market and other conditions,” a Sheela Foam spokesperson said in an email response to questions on the IPO.
- Financials: In fiscal years 2014-15 and 2015-16, revenue from thesale of home comfort products aggregated to Rs916 crore and Rs1,016.4 crore, constituting 64.6% and 65.5%, respectively, of Sheela Foam’s total revenue for these years.
- 12 Manufacturing Facility with nationwide network: Sheela Foam has 12 manufacturing facilities and a nationwide network of more than 100 distributors and around 5,000 dealers. The company also exports its products to almost 25 countries, according to its website.
- Market share of ~20-23% in organized Indian mattress market: According to Crisil Ltd, based on revenues, Sleepwell branded mattresses constituted a share of around 20-23% of the organized Indian mattress market as of 2015-2016. Sleepwell in India competes with other home-grown brands such as Kurlon Enterprise Ltd, Springfit, and Springwel Mattresses Pvt. Ltd.
1) Demonetisation: Jewellery sales take hit at Zaveri Bazaar
- Jewellery Industry on a decline during Apr to Sept: City’s wholesale and retail market for bullion, Zaveri Bazaar, witnessed lacklustre trade today as sale of gold jewellery slumped owing to scrapping of Rs 500 and Rs 1000 notes by government as part of its clamp down on black money and corruption. “After brisk buying at higher rates for gold till late night on Tuesday, the bullion market witnessed lacklustre trading activity today following ban on Rs 500 and Rs 1,000 notes. People are withholding their purchases of gold jewellery till higher denomination notes will come under circulation,” said Ajit Shah, a leading jeweller.
- Demand overall moderate: The industry is already passing through bad phase due to lower demand despite ongoing wedding season. We hope things will improve in the near future, he said. The demand for gold during ‘Dhanteras’, the gold buying festival and Diwali, remained moderate compared to last year. Retailers in the city blame the slowdown in economy to global factors. After a muted Navratri and Dusshera, gold demand saw a slight pickup, but it was mostly on the back of discounts and festive offers.But perhaps, the biggest factor affecting domestic demand is the continued push towards regulation and accountability that the government is levelling in general, including the gold market.