Sheela Foam has announced the successful conclusion of its qualified institutions placement (QIP) for the company's equity shares. The QIP, which commenced on 20 September 2023, concluded on 25 September 2023, with a total of 1,11,31,725 equity shares being allotted. The shares were priced at Rs 1,078 per share, resulting in an issue size of approximately Rs 1,200 crore.

The issue price of Rs 1,078 is at a discount of Rs 55.99 or 4.94%, to the floor price of Rs 1,133.99 per equity share set for the QIP issue.

The QIP witnessed participation from various institutional investors, with the top five allottees receiving around 88.13% of the total issue size.

Kotak Funds emerged as the largest allottee, securing a substantial 24.80% allocation. Following closely behind, Nippon Life India Trustee secured a notable 17.50% allocation, while SBI Life Insurance Company and mutilpe funds of SBI Mutual Fund received allocations of 17.50% and 12.50%, respectively. Winro Commercial (India) secured a 6.87% allocation and the allocation of Aditya Birla Sun Life Insurance Company was 8.33%.

Sheela Foam pioneered in the manufacturing of polyurethane foams in India and has ten manufacturing facilities, using the state of the art technology at strategic locations across the country.

The company reported 42% jump in consolidated net profit to Rs 54.39 crore during the quarter as against Rs 38.30 crore recorded in corresponding quarter last year. Net sales fell 8.2% year on year to Rs 447.83 crore during the quarter.

The scrip had gained 0.59% to end at Rs 1135.60 on the BSE today.