The reports further stated that acquiring Kurlon Enterprise, maker of the Kurl-on brand of mattresses, will help Sheela Foam, known for the Sleepwell brand, nearly double its market share to 35-40 percent from 20-25 percent.

The media reports also said that at the consolidated level, the listed company's topline could rise by around Rs 900 crore.

The deal would also help Sheela Foam source more raw material TDI (Toluene Di-Isocyanate) at lower rates, media reports stated.

The BSE has sought clarification from Sheela Foam with reference to the news: "Sheela Foam to buy Kurlon Enterprise for Rs 3,250 crore".

"The reply is awaited,” BSE said.

On the BSE, 0.14 lakh shares of the company had changed hands at the counter as compared with an average trading volume of 5,680 shares in the past two weeks.

Sheela Foam sells foam, coir and spring mattresses under the Sleepwell brand and non-mattress foam products under the Feather Foam brand.

The company had reported 7.1% fall in consolidated net profit to Rs 45.8 crore on a 1.1% fall in revenue from operations to Rs 729 crore in Q4 FY23 over Q4 FY22.