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Sham Foam Ltd IPO
Sham Foam Ltd
₹2,60,000 /2000 sharesMinimum investment
IPO listing details
Listed on
18 Aug '26
Issue price
₹130.00
Listing price
₹104.00
Listing gains
-₹26.00 (20.00%)
Exchange
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IPO details
Minimum investment
₹2,60,000
Price range
₹130 - ₹130
Lot size
1,000
Issue size
40.48 Cr
Face value
10
IPO document
Subscription rate
Data will be available soon
Schedule
11 Aug 2026
IPO open date
13 Aug 2026
IPO close date
14 Aug 2026
Allotment date
14 Aug 2026
Funds unblock or debit
18 Aug 2026
Tentative listing date
About
Founded in
2020
MD/CEO
Mr. Rajinder Kumar Jindal
Parent organisation
Sham Foam Ltd
Sham Foam Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company operates an in-house manufacturing facility in Ambala, Haryana, spread across 2,04,460 sq. ft., with an installed PU foam production capacity of 15,000 TPA. The facility allows the company to manufacture PU foam in different compositions and customise the products based on customer requirements.
The company has an established distribution network across 13 states and Union Territories in India, supported by more than 1,300 dealers. It also conducts training programmes for dealer sales personnel and offers sales-linked incentives to its dealers.
The company claims to have developed long-standing relationships with several of its dealers across India. These relationships have enabled it to retain several dealers and maintain distribution of its products across its operating markets.
The company manufactures customised PU foam in different grades and densities based on customer requirements. Its PU foam caters to multiple applications, including mattresses, furniture, sports products, seat covers, footwear, innerwear, jackets, and other apparel.
The company claims to have integrated QR codes on PU foam sheets and cushions, allowing carpenters to access product information and associated schemes. It has also integrated QR codes across its mattress range for accessing product information and completing warranty registration.
The company is ISO 9001:2015 certified for quality management systems and holds BIS Certification No. IS 7933:2022 for its manufacturing facility.
The company has seen an increase in profit after tax (PAT). PAT increased from Rs 0.70 crore to Rs 2.97 crore and Rs 3.58 crore in FY23, FY24, and FY25, respectively.
The top 10 customers of the company contributed Rs 20.36 crore (25.51%), Rs 20.66 crore (28.02%), Rs 21.77 crore (26.83%), and Rs 9.50 crore (25.10%) to its revenue from operations in FY23, FY24, FY25, and the six months ended September 30, 2025, respectively. In the future, tf the company fails to retain key customers or faces a reduction in business from them, its revenue, cash flows, and financial condition could be adversely affected.
The company’s top suppliers accounted for 88.07%, 86.85%, 78.31%, and 88.34% of total purchases in FY23, FY24, FY25, and the six months ended September 30, 2025, respectively. The company does not have long-term agreements with its raw material suppliers, and any disruption in supply or increase in prices can affect its production schedules, margins, and ability to meet customer orders.
The company’s sales are geographically concentrated, with Punjab and Uttar Pradesh together contributing 48.64% of its revenue from operations in FY25. This geographic concentration makes the company dependent on demand and market conditions in these regions, and any adverse developments can affect its business and revenue from operations.
The company is dependent on a single manufacturing facility in Ambala, Haryana, for its manufacturing operations. Any shutdown, machinery breakdown, power interruption, or other disruption at this facility can affect production and lead to delays or non-delivery of products, resulting in loss of revenue and customer relationships.
PU foam contributed Rs 74.30 crore (93.08%), Rs 67.82 crore (91.99%), Rs 71.84 crore (88.53%), and Rs 32.07 crore (84.69%) to the company’s revenue from operations in FY23, FY24, FY25, and the six months ended September 30, 2025, respectively. This high product concentration makes the company dependent on demand for PU foam, and any reduction in demand or change in customer preferences can adversely affect its business and financial performance.
The company’s manufacturing facility has an installed capacity of 15,000 TPA, while its available capacity was 6,000 TPA in FY23, FY24, FY25, and the six months ended September 30, 2025. Capacity utilisation stood at 81%, 78%, 80%, and 38%, respectively, with the September 2025 figure representing six months. Any prolonged under-utilisation of its existing or proposed expanded capacity can result in operational inefficiencies and adversely affect its financial performance.
The company’s trade receivables stood at Rs 14.70 crore (18.42%), Rs 17.12 crore (23.22%), Rs 21.90 crore (26.99%), and Rs 24.71 crore (65.26%) of revenue from operations in FY23, FY24, FY25, and the six months ended September 30, 2025, respectively. Delay or default in payments from dealers can adversely affect the company’s cash flows and profitability.
As of September 30, 2025, the company had outstanding financial indebtedness of Rs 7.12 crore. Any failure to service or repay these loans on time can harm the company’s operations and financial position.
The company recorded negative cash flow from operating activities of Rs 3.98 crore in FY23, primarily due to working capital movements, including an increase in debtors and inventory. It recorded negative cash flows from investing activities of Rs 0.38 crore, Rs 0.72 crore, Rs 0.30 crore, and Rs 0.17 crore in FY23, FY24, FY25, and the six months ended September 30, 2025, respectively, primarily due to the purchase of fixed assets. Additionally, it recorded negative cash flows from financing activities of Rs 4.40 crore, Rs 0.96 crore, and Rs 2.12 crore in FY24, FY25, and the six months ended September 30, 2025, respectively, primarily due to interest payments and a decrease in borrowings. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.
Application details
For Sham Foam IPO, eligible investors can apply as Individual investor.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Individual investor | ₹130 - ₹130 | ₹2 - ₹5 Lakhs | 1000 |
About
Objectives of Sham Foam IPO Proceeds
|
Particulars |
Estimated Amount (in ₹ Cr.) |
|
To finance the capital expenditure requirements for civil construction and purchase of machinery and equipment for the existing manufacturing facility. |
14.72 |
|
To part finance the requirement of working capital |
14.25 |
|
General corporate purposes |
6.04 |
|
Total |
35.01 |
Book Running Lead Manager & Registrar of Sham Foam IPO
|
Book Running Lead Manager |
Corporate Makers Capital Limited, Navigant Corporate Advisors Limited |
|
Registrar to the Issue |
Alankit Assignments Limited |
Key Performance Indicators (KPIs) of Sham Foam Ltd.
|
KPI |
Value (for the fiscal year ended March 31, 2026) |
|
ROE (%) |
51.53 |
|
ROCE (%) |
45.73 |
|
EBITDA Margin (%) |
11.91 |
|
Debt/Equity Ratio |
0.19 |
|
PAT Margin (%) |
9.37 |
|
Return on Net Worth (RoNW) (%) |
40.97 |
|
Net Asset Value (NAV) per Equity Share (₹) |
25.21 |
|
EPS (Pre-IPO) (₹) |
10.33 |
Sham Foam IPO Contact Details
|
Company Name |
Sham Foam Limited |
|
Registered Office |
Khasra No. 18/16/2, Shahzadpur Yamunanager Road, NH-344, Village Rajpura, Tehsil Shahzadpur, Ambala City, Haryana-134202 |
|
Phone |
+91-8572071526 |
|
|
|
|
Website |
Sham Foam IPO Registrar Contact Details
|
Company Name |
Alankit Assignments Limited |
|
Phone |
011 4254 1234 |
|
|
|
|
Website |