Despite strong fundamentals and attractive valuation, the weak market sentiment (low GMP, no QIB interest) suggests limited listing pop. However, the attractive pricing might attract some short-term interest.
descriptionExecutive Summary
Sham Foam is engaged in the business of manufacturing, distribution, and marketing, likely within the mattress industry, as indicated by the addressable market data. The company has demonstrated strong financial growth and profitability in recent years.
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Analyst Notes
Sham Foam demonstrates exceptional financial health with strong growth in revenue and profits, coupled with outstanding return ratios (ROE, ROCE) and a very low debt profile. The post-IPO valuation is attractive when compared to its peers, suggesting a potential for significant upside. While there is a notable lack of detailed qualitative information in the DRHP, which is a common characteristic of SME IPOs, the robust quantitative performance and strategic use of IPO funds for expansion provide a strong foundation. The weak market sentiment, as indicated by the absence of QIB subscription and low GMP, might limit immediate listing gains but presents a compelling entry point for long-term investors focused on fundamentals. The high promoter holding further reinforces confidence in the company's future.
insightsOutlook
boltListing GainNeutral
ConfidenceModerate
Despite strong fundamentals and attractive valuation, the weak market sentiment (low GMP, no QIB interest) suggests limited listing pop. However, the attractive pricing might attract some short-term interest.
scheduleShort TermNeutral Positive
ConfidenceModerate
The company's strong financial performance, high return ratios, and attractive valuation relative to peers make it a compelling short-term investment, assuming market sentiment improves post-listing.
historyLong TermApply
ConfidenceModerate
The company operates in a growing industry, has demonstrated strong financial growth, and is using IPO funds for expansion. Its robust profitability and low debt position it well for sustained long-term growth, provided it can overcome the current information asymmetry.
radarScore Profile
Overall Score
69.3/100
account_balanceFinancial Strength
9.0/10
business_centerBusiness Quality
5.0/10
sellValuation
8.0/10
trending_upGrowth
9.0/10
verified_userGovernance
6.0/10
moodMarket Sentiment
3.0/10
warningRisk
4.0/10
monitoringFinancial Analysis
92.4₹ Cr · FY24–FY26
insightsRevenue grew from 73.9 to 92.4 across FY24–FY26 (+25%).
Latest
92.4
Low
73.9
High
92.4
Average
82.6
Δ Period
+18.5
flagRed flag · No significant financial red flags identified based on available data.
Quality Ratings
Revenue Consistency—
Profit ConsistencyStrong
EBITDA TrendStrong
Margin TrendImproving
Net Worth Trend—
Cash Flow Quality—
Working CapitalModerate
Debt LevelsLow
Debt ServicingLow
Earnings QualityStrong
Return RatiosHigh
Profit SustainabilityImproving
sellValuation Analysis
Valuation Meter
Capital Eff.
Excellent
Risk-adj. Return
High
Pre-IPO P/E
12.58×
Post-IPO P/E
17.26×
EV / EBITDA
—
Price / Book
5.16×
ROE
51.53%
ROCE
45.73%
Competitive PositioningStrong
Relative Pricing vs Peers—
candlestick_chartListing Performance
Listing Gain (18 Aug)
₹-26(-20%)
Issue Price
₹130
Listing Price
₹104
Listing Day Close
₹98.8
business_centerBusiness Quality
lan
Business Model
Engaged in the manufacturing, distribution, and marketing of products, likely in the foam/mattress sector.
security
Competitive Moat
Data Not Available.
open_in_full
Scalability
IPO proceeds allocated for capital expenditure and working capital suggest plans for expansion and scalability.
public
Market Opportunity
Operating in the growing India mattress market (USD 2, CAGR 8.8%).
star
Brand Strength
Data Not Available.
memory
Technology Edge
Data Not Available.
fence
Entry Barriers
Data Not Available.
leaderboard
Industry Position
Data Not Available.
groups
Customer Concentration
Data Not Available.
local_shipping
Supplier Concentration
Data Not Available.
factoryIndustry Analysis
factoryBusiness Of Manufacturing, Distribution, Market
Industry CAGR
8.8%
verified_userGovernance & Ownership
Governance Health
Moderate
Risk & Quality Ratings
Promoter QualityHigh
Governance RatingModerate
TransparencyModerate
Litigation Risk—
Regulatory Issues—
Dependency Risk—
Shareholding Pattern
Pre-Issue Promoter100%
Post-Issue Promoter72.9%
infoPromoter dilution of 27.1 pts post-issue.
groupsPeer Comparison
Company
P/E
RoNW / ROE
ROCE
P/B
EPS (Basic)
NAV
Sham FoamThis IPO
17.26×
51.53%
45.73%
5.16×
—
—
Wakefit Innovations Ltd.
21.22×
22.9%
—
—
₹6.03
₹343
Sheela Foam Ltd.
64.5×
4.48%
—
—
₹11.96
₹266.69
Sham Foam Ltd.
12.58×
40.97%
—
—
₹10.33
₹25.21
Sham FoamThis IPO
P/E17.26×
RoNW / ROE51.53%
ROCE45.73%
P/B5.16×
Wakefit Innovations Ltd.
P/E21.22×
RoNW / ROE22.9%
EPS (Basic)₹6.03
NAV₹343
Sheela Foam Ltd.
P/E64.5×
RoNW / ROE4.48%
EPS (Basic)₹11.96
NAV₹266.69
Sham Foam Ltd.
P/E12.58×
RoNW / ROE40.97%
EPS (Basic)₹10.33
NAV₹25.21
trending_upStrongest Peer
Sheela Foam Ltd.
trending_downWeakest Peer
Wakefit Innovations Ltd.
receipt_longOffer Details
Fresh Issue
₹38.45 Cr
Total Shares
31,14,000
Net Offer Shares
29,58,000
Registrar
Alankit Assignments Ltd.
Market Maker
1,56,000
Lead Managers
Navigant Corporate Advisors Ltd.
shopping_cartLot Size & Bidding
Min Investment
₹2.60 L
₹2,60,000
Lot Size
1,000 sh
shares per lot
Min Bid
2,000 sh
minimum to apply
Individual investors (Retail)
Fixed · 2 lots
₹2.60 Lentry
Min
2 lots
2,000 sh · ₹2.60 L
Max
2 lots
2,000 sh · ₹2.60 L
HNI
3 lots & above
₹3.90 Lentry
Min
3 lots
3,000 sh · ₹3.90 L
Max
—
no upper limit
pie_chartReservation Breakdown
Category
Shares Offered
% of Issue
Share
NII (HNI)
14,79,000
47.5%
Retail
14,79,000
47.5%
Market Maker
1,56,000
5.01%
NII (HNI)47.5%
14,79,000 shares offered
Retail47.5%
14,79,000 shares offered
Market Maker5.01%
1,56,000 shares offered
show_chartGrey Market Premium
GMP Trend (last 2 sessions)
—
Peak GMP was ₹9.0, but current GMP is not available, indicating weak or no grey market premium.
insightsGMP eased −₹5 (−55.6%) over 2 sessions, peaking at ₹9 before settling at ₹4.
Current
₹4
High
₹9
Low
₹4
Average
₹6.5
Δ Period
−₹5
Market Sentiment
Weak
grid_viewSubscription Demand
Category Subscription (×)
QIB
—
HNI
2.17×
Retail
2.62×
Overall
2.4×
All Categories
NII
2.17×
RII
2.62×
my_locationObjects of the Issue
my_location
Capital Expenditure
To finance the Capital expenditure requirements for civil construction and purchase of Machineries and Equipments for existing manufacturing facility. Upto Rs. 1,371.65 [●] [●]
my_location
Working Capital
To part finance the requirement of Working Capital. Upto Rs. 1,425.00 [●] [●]
my_location
General Corporate Purpose
To meet General corporate purposes* [●] [●] [●] Total [●] [●] 100.00
badgeManagement
Other Directorships
Executive Director
thumb_upKey Strengths
check
Strong financial performance with consistent revenue, EBITDA, and PAT growth.
check
Exceptional return ratios (ROE 51.53%, ROCE 45.73%).
check
Very low debt-to-equity ratio (0.19).
check
Attractive valuation (Post-IPO P/E 17.26x) compared to peers.
check
High promoter holding (72.9% post-IPO) indicating strong commitment.
check
IPO proceeds earmarked for capital expenditure and working capital, supporting future growth.
check
Operating in a growing industry (India mattress market CAGR 8.8%).
warningRisk Analysis
0
Critical
2
High
2
Moderate
0
Low
warning
Significant lack of detailed information on business model, competitive advantages, customer/supplier concentration, and specific risk factors in the DRHP.
High
warning
Absence of QIB subscription data and weak GMP indicates low institutional and overall market interest.
High
error
Limited information on management background and corporate governance practices.
Moderate
error
Potential for execution risk related to capital expenditure plans.
Moderate
insightsFuture Outlook
rocket_launchBull Case
Revenue
₹120 Cr
PAT Margin
12%
Successful implementation of capex plans, increasing market share in the growing mattress industry, and improved brand recognition.
timelineBase Case
Revenue
₹105 Cr
PAT Margin
10%
Steady demand in the domestic market, efficient utilization of IPO funds, and stable raw material prices.
trending_downBear Case
Revenue
₹85 Cr
PAT Margin
7%
Intensified competition, failure to effectively deploy IPO funds, or adverse changes in consumer spending patterns.
auto_awesomeAI Insights
auto_awesome
Positive: Consistent and strong revenue, EBITDA, and PAT growth (FY24-FY26).
auto_awesome
Concern: Lack of detailed business description, competitive analysis, and risk factors in the DRHP.