Sham Foam SME IPO listing: Shares of Sham Foam debuted on a weak note on Tuesday, 18 August, amid weak stock market sentiment. Sham Foam’s share price was listed at ₹104, a 20% discount to the issue price of ₹130. After a weak debut, the SME stock extended losses and hit its lower price band of ₹98.80, down 24% from the issue price.
According to grey market sources, the stock’s listing failed to meet expectations, as the last grey market premium (GMP) on Sham Foam stock on Tuesday morning was ₹1.5, suggesting the stock could list at a 1.15% premium.
Sham Foam IPO details
Sham Foam IPO was a fresh issue of 31,14,000 shares at the issue price of ₹130 to raise ₹40.48 crore. The SME IPO opened on Tuesday, 11 August, and concluded with an overall subscription of 2.40 times on Thursday, 13 August.
Corporate Makers Capital Limited and Navigant Corporate Advisors Limited were the book-running lead managers, and Alankit Assignments Limited was the registrar of the issue.
The company intends to utilise the net proceeds from the issue to finance the capital expenditure requirements for civil construction and the purchase of machinery and equipment for the existing manufacturing facility. Some of the net proceeds will be used to partially finance the working capital requirements and for general corporate purposes.
Sham Foam is primarily engaged in the business of manufacturing, distributing, marketing, and selling polyurethane foam, mattresses, and other allied home comfort products targeted primarily at Indian consumers. It also manufactures industrial-grade PU foam used across a wide range of industries in India.
The company’s revenue from operations in FY24 was ₹73.73 crore, which increased to ₹81.15 crore in FY25, and to ₹92.32 crore in FY26.
The company’s profits in FY24, FY25, and FY26 were ₹2.97 crore, ₹3.58 crore, and ₹8.65 crore, respectively.
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