Haryana-based polyurethane foam and mattress maker Sham Foam successfully closed its maiden public issue on August 13, achieving a 2.32 times subscription during the three-day bidding period from August 11 to August 13. The IPO attracted bids for 72.47 lakh shares against the total offer size of 31.14 lakh shares through 2,885 applications. According to exchange data, retail investors showed strong interest with 2.61 times subscription while non-retail investors subscribed 2.28 times their allocated quotas. The company is expected to finalise IPO share allotment by August 14, with equity shares set to trade on the BSE SME platform from August 18.
The company demonstrated exceptional financial growth in FY26, with total revenue increasing to ₹92.39 crore from ₹81.62 crore in FY25, representing a 13.8 percent year-on-year growth. As reported by exchange data, profit after tax (PAT) surged to ₹8.65 crore in FY26 compared to ₹3.58 crore in the previous fiscal year, marking a remarkable 141.5 percent year-on-year growth. The company's revenue growth of approximately ₹10.77 crore and PAT increase of ₹5.07 crore reflect robust operational performance in the home comfort segment.
According to the company's disclosure, the IPO proceeds will be utilized for civil construction and purchase of machinery and equipment at its existing manufacturing facility, with ₹14.7 crore allocated for this purpose. Additionally, ₹14.25 crore will be used for working capital requirements, while the remaining funds will be earmarked for general corporate purposes. The existing manufacturing facility in Ambala, Haryana, has an installed capacity of 15,000 tonnes per annum (TPA) for PU foam production, currently operating at around 80 percent capacity due to limitations in cutting machines and associated machinery. The company expects to receive ₹35 crore in net proceeds from the offer.
Sham Foam operates in the manufacturing, distribution, marketing and sale of polyurethane foam (PU foam), mattresses and related home comfort products, along with industrial-grade PU foam used across several industries. The company's business model focuses on the home comfort segment, positioning it in the growing consumer durables market. The IPO was conducted on the BSE SME platform, targeting retail investors in the small and medium enterprise segment with a focus on the polyurethane foam and mattress manufacturing industry. Corporate Makers Capital Ltd served as the merchant banker for the issue.
