Sham Foam IPO

The Sham Foam SME IPO opens for subscription on 11 Aug 2026 and closes on 13 Aug 2026, offered at an issue price of ₹130 per share, and is set to list on BSE. In total, the issue aims to mobilise ₹40.48 crore. Retail investors bid in lots of 1000 shares, a minimum application of ₹2,60,000.

Issue structure

The IPO is structured entirely as a fresh issue of ₹38.45 crore, so the full proceeds flow to the company to fund its stated objects of the issue.

Objects of the issue

Per the offer document, the company intends to deploy the net proceeds primarily toward to finance the capital expenditure requirements for civil construction and purchase of machineries and equipments for existing manufacturing facility (₹14.72 crore), alongside to part finance the requirement of working capital (₹14.25 crore). In all, 3 objects are disclosed — the full break-up is in the table above.

Financials

In FY2026, Sham Foam reported revenue of ₹92.39 crore and a net profit of ₹8.65 crore. Revenue grew from ₹73.89 crore in FY2024 to ₹92.39 crore in FY2026 (+25.0%). Net worth stood at ₹21.11 crore at the end of FY2026. At the upper band, that puts the issue at roughly 12.6× FY2026 earnings (P/E), a figure worth comparing against listed peers in the sector.

Valuation

At the upper band, the issue is priced at 17.26× post-issue earnings and 5.16× book value, against a return on net worth of 40.97% and a debt-to-equity ratio of 0.19. These ratios come from the offer document and are for comparison, not a recommendation.

Peer comparison

The offer document names listed peers including Sheela Foam Ltd. and Wakefit Innovations Ltd., with a median peer P/E of about 42.9×. The issue's own post-issue P/E works out to 17.26×.

Promoters

The promoters of the company are <p>Rajinder Kumar Jindal, Sanjeev Kumar Jindal, Monica Jindal, Deepika Jindal, Abhinav Jindal, Kunal Jindal, Charming Fashions Pvt.Ltd.</p>. Promoter holding stands at 100% before the issue and comes down to 72.9% after listing.

Grey market premium (GMP)

In the unofficial grey market, Sham Foam shares are quoted at a premium of ₹1.5 implying an expected listing around ₹131.5, about +1.1% over the upper band. Grey market premium is a sentiment indicator set by private dealers, not the company or the exchange — it moves quickly and is not a reliable predictor of the actual listing price.

Subscription

The Sham Foam IPO was subscribed 2.4 times overall. The strongest demand came from retail investors at 2.62 times, with non-institutional investors (NII) at 2.17×.

Listing performance

Sham Foam listed on 18 Aug 2026 at ₹104, a discount of -20.0% over the issue price of ₹130.

What to weigh

When evaluating the Sham Foam IPO, the data points most investors look at are the fresh-issue-versus-OFS split, the revenue and profitability trend, subscription demand across investor categories and the grey market premium. Grey market premium and subscription figures reflect short-term sentiment rather than long-term fundamentals; the figures on this page are for information only and are not investment advice.

About Sham Foam

Sham Foam Limited is an Indian manufacturer of polyurethane foam (PU Foam), mattresses, pillows, cushions, and other comfort-focused products catering to both retail and industrial customers. The company also manufactures industrial-grade PU foam that serves a wide range of sectors, including furniture, automotive, apparel, and sports goods. Its product portfolio covers mattresses, pillows, cushions, furniture cushioning solutions, and PU foam cores used in home comfort applications. The company offers customized PU foam and mattress products designed to meet specific customer requirements. Its mattress range is marketed under the " Featherfresh " and " Restivia " brands, featuring pure foam as well as hybrid models that combine spring and rebonded foam technologies. The company&rsquo;s pillows and cushions, sold primarily under the " Featherfresh " brand, are available in different foam densities to provide enhanced comfort, support, and durability. Sham Foam follows a vertically integrated business model, enabling it to oversee every stage of the value chain, including product development, manufacturing, quality control, distribution, and customer service. This integrated approach helps maintain product consistency while ensuring operational efficiency. The company operates a modern manufacturing facility in Ambala, Haryana, covering approximately 2,04,460 square feet. The facility is certified under ISO 9001:2015 and complies with BIS (IS 7933:2022) standards. With an installed PU foam production capacity of 15,000 tonnes per annum (TPA), the plant is strategically located to support efficient supply chain management, faster deliveries, and stronger customer connectivity. Sham Foam has established a growing presence across India and currently serves customers in 13 states and union territories, including Bihar, Chandigarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu &amp; Kashmir, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand. Key Strengths: Advanced in-house manufacturing infrastructure supported by technology-driven operations. Strong and expanding distribution and dealer network across multiple Indian states. Established and long-term relationships with dealers and channel partners. Commitment to maintaining high product quality and timely order fulfillment. Experienced promoters and management team with industry expertise.