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Sham Foam 

• Sham Foam is coming out with an initial public offering (IPO) of 31,14,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 130 per equity share.
• The issue will open on August 11, 2026 and will close on August 13, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 13 times higher to its face value of Rs 10.
• Book running lead managers to the issue are Corporate Makers Capital and Navigant Corporate Advisors.
• Compliance Officer for the issue is Reetika Dhain.

Profile of the company

Sham Foam is primarily engaged in the business of manufacturing, distribution, marketing and selling of polyurethane foam (PU Foam), mattresses and other allied home comfort products targeted primarily at Indian consumers. It also manufactures Industrial grades of PU Foam that is used in a wide range of industries in India. It offers a diversified product portfolio catering to consumers with varied preferences and requirements. Its foam-based product line comprises mattresses, pillows, furniture-cushions, cushions as well as PU foam cores utilised for manufacturing finished home comfort products. It specializes in manufacturing of customized PU Foam and Mattress to suit the specific requirements of its customers. Its mattresses are primarily offered under its brand Featherfresh and Restivia range, includes both pure foam mattresses as well as hybrid mattress combining spring and rebounded foam, that are capable of bespoke customisation as per the requirements of consumers. Further, its pillow and cushions are primarily offered under the brand Featherfresh range, comprises PU Foam that constitutes upholstery material of different densities to ensure greater comfort and durability.

It is engaged in the manufacture and supply of PU Foam, catering primarily to the mattress and furniture industry, as well as applications in sports products, seat cover, Shoes, innerwear, jackets and related apparel. It also specializes in PU foam production, supplying customized grades/ density as per customer requirements. Certain finished products, such as pillows, are manufactured on a job-work basis through third-party manufacturers, as per customer specifications. It is a full-stack vertically integrated company, enabling it to control every aspect of its operations, from conceptualizing, designing and engineering its products to manufacturing, distributing and providing customer experience and engagement.

It currently owns and operates from its state of art manufacturing facility accredited with ISO 9001:2015 and BIS Certification no. IS 7933:2022 for quality management systems and situated at Khasra No. 18/16/2, Shahzadpur Yamunanagar Road, Nh-344, Village Rajpura, Tehsil Shahzadpur, Ambala, Shahzadpur, Ambala, Ambala City, Haryana, India. Its installed capacity for foam production in India is currently at 15,000 TPA. Its manufacturing facility is strategically located near to majority of its customers’ manufacturing facilities allowing it to optimise its deliveries, reduce lead times and facilitate greater interaction with its customers.

Proceed is being used for:

• Financing the capital expenditure requirements for civil construction and purchase of machineries and equipment for existing manufacturing facility
• Part financing the requirement of working capital
• Metting general corporate purposes

Industry Overview

The India mattress market is segmented by product type (Innerspring/Coil, Foam Including Memory Foam, Latex, Hybrid, Other Mattress Types), Mattress Size (Single-Size, Double-Size, Queen Size, King-Size, Custom & Specialty Sizes), End User (Residential, Commercial), Distribution Channel (B2C/Retail, B2B/Project), and Geography. The India mattress market size is $2.40 billion in 2025 and is forecast to reach $3.65 billion by 2030, expanding at an 8.80% CAGR across the period. Surging sleep-health awareness, higher urban disposable income, and an expanding omnichannel retail network have repositioned mattresses from basic furniture to health investments. Organized players are capitalizing on the trend by integrating AI enabled products, tightening supply chains and widening show-room footprints to reach digitally-savvy consumers in Tier-II and Tier-III cities. Hospitality growth linked to India’s G20 tourism push and the hotel sector’s $31.01 billion 2029 revenue target is creating incremental B2B volume that supports factory utilization rates. Meanwhile, direct-to-consumer (D2C) brands have disrupted legacy pricing by offering 25-50% lower ticket sizes and reinforcing the premiumization narrative through health-centric positioning.

Urban population share is poised to exceed 50% by 2047, requiring 78 million new housing units and driving consistent bedding demand. Real-estate value is projected to climb from $482 billion in 2024 to $1.5 trillion in 2034, catalyzing mattress replacement and first-time purchases. Luxury housing’s share rose from 16% in 2018 to 34% in 2023, lifting average selling prices. Smart-home integrations encourage the adoption of IoT-enabled mattress technologies. Developers bundling fully-furnished apartments further stimulate B2B sales. Real estate developers' focus on wellness amenities creates B2B opportunities for mattress manufacturers to supply furnished apartments and corporate housing projects. The urbanization trend establishes sustainable demand fundamentals that support long-term market expansion while creating geographic diversification opportunities for manufacturers seeking growth beyond traditional metropolitan markets. 

Meanwhile, more than 35% of volumes originate from unorganized producers operating at 30-40% lower price points. Their agile customization and low overheads help capture buyers, prioritizing affordability over brand. Distribution reach into remote geographies gives them a defensive moat against larger brands. Quality gaps have narrowed as local firms adopt improved foaming and spring units. Inconsistent enforcement of safety and labeling standards perpetuates an uneven competitive field. Regulatory enforcement variations across states create inconsistent competitive environments that complicate strategic planning for organized players seeking national market expansion and standardized positioning strategies.

Pros and strengths

In-house manufacturing facility supported by technology driven process: It presently carry all its manufacturing operations through its state of art manufacturing facility accredited with ISO 9001:2015 and BIS Certification no. IS 7933:2022 for quality management systems situated at Shahzadpur Yamunanagar Road, Rajpura, Tehsil Shahzadpur, Ambala, Shahzadpur, Ambala, Ambala City, Haryana, India, which manufacture PU Foam and has 15,000 TPA installed capacity. It has established an efficient, technology-driven manufacturing process that enables it to produce its products in accordance with the specific requirements and specifications of its customers in a cost-effective manner. This includes the integration of QR codes on PU foam sheets and cushions, allowing carpenters to easily access product information and benefit from associated schemes. Additionally, it has integrated QR codes across its mattress range, enabling customers to access product details and complete warranty registration with a simple scan, making its offerings transparent, reliable, and truly tech-enabled.

Extensive and well-developed pan-India sales and distribution network: It has established a strong and far-reaching sales and distribution network that spans 13 states and union territories, supported by a robust base of dealers. Its distribution network provides support to its business operations. It sells its products through a pan-India network of dealers. Its well-developed sales and distribution network gives it a standing in a market where the lack of distribution channels can create natural entry barriers. It conducts periodic training programmes for sales personnel of its dealers to ensure appropriate marketing and showcase of its brands. It also provides sales incentives to its dealers, whereby, incentive coupons/credits are provided to dealers who achieve sales targets during a specified period. Such initiatives encourage its dealers to effect greater sales, and increase its brand visibility.

Focus on quality and timely delivery: Meeting deadlines along with managing quality are bed rock of successful strategy. It stresses on and constantly strives to maintain and improve its quality. Its focus on quality and innovation helps it to complete in the segment it deals. Intensive care is taken to determine the standard of every material/ product dispatched. Further, as a certification of the quality assurance, it has received ISO 9001:2015 and BIS Certification no. IS 7933:2022 for quality management systems. Its focus on quality of products has enabled it to sustain its business model to benefit its customers.

Risks and concerns

Operational disruption risk: Its business is dependent on its manufacturing facility. Any shutdown of operations of its manufacturing facility may have an adverse effect on its business and results of operations. It has a Manufacturing Facility situated at Khasra No. 18/16/2, Shahzadpur Yamunanager Road, Nh-344, Village Rajpura, Tehsil Shahzadpur, Ambala, Shahzadpur, Ambala, Ambala City, Haryana, India. Its manufacturing facility is supported by infrastructure for storage of raw materials and finished goods, together with quality control equipment and processing team. This manufacturing facility is subject to the normal risks of industrial production, including natural disasters, directives from government agencies and power interruptions.

Reliance on limited customers for revenue: Its revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations. For the period ended March 31, 2024, March 31, 2025 and March 31, 2026 its revenue from operations from its top 10 customers contributed to 28.02%, 26.83% and 25.06% respectively of its revenues from operations as per its Restated Financial Statements. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

High working capital requirements: Its business requires significant amount of working capital and major portion of its working capital is utilized towards inventories and trade receivables. Its growing scale and expansion, if any, may result in increase in the quantum of current assets. Its inability to maintain sufficient cash flow, and other sources of funding, in a timely manner, or at all, to meet the requirement of working capital, could adversely affect its financial condition and result of its operations. Further, it has high outstanding amount due from its debtors which may result in a high risk in case of non-payment by these debtors. In case of any such defaults from its debtors, may affect its business operations and financials.

Outlook

Sham Foam is engaged in the business of manufacturing of PU Foam, Mattress, Pillow and Other comfort products. It has established a strong and far-reaching sales and distribution network that spans 13 states and union territories, supported by a robust base of dealers. Its distribution network provides support to its business operations. It sells its products through a pan-India network of dealers. Its well-developed sales and distribution network gives it a standing in a market where the lack of distribution channels can create natural entry barriers. On the concern side, it derives a significant portion of its revenue from the sale of PU Foam. It manufactures, markets and sells PU Foam to various dealers across India. For Fiscals 2026, 2025 and 2024, its revenue from its sale of PU Foam amounted to Rs 7,960.10 lakh, Rs 7,184.30 lakh and Rs 6,782.23 Lakh representing 86.22%, 88.53% and 91.99% of its revenue from operations, respectively. Consequently, any reduction in demand from the costumers of PU Foam or lack of preference could have an adverse effect on its business, results of operations and financial condition.

The company is coming out with an IPO of 31,14,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 130 per equity share to mobilize Rs 40.48 crore. On performance front, its revenue from operations increased by 13.77% to Rs 9,231.92 lakh for FY 2026 from Rs 8,114.82 lakh for FY 2025. Profit after tax has increased by 141.51% from Rs 358.19 lakh for FY 2025 to Rs 865.06 lakh for FY 2026.

Meanwhile, a key strategy for increasing and growing its business is to increase the strength of its relationship with its existing customers, reaching out for new customers & widen its customer base. Its strategy is to widen its customer base geographically as well as demographically. It intends to continue to invest in its existing products so as to provide better experiences to its existing clients and also provide products for increasing the client base of the company. Going forward, it intends to expand its geographical reach and enter the large domestic market for growth opportunities of its business. Currently, it has presence in the state of Bihar, Chandigarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh and Uttarakhand and it plans to deepen its presence in the existing market and expand its reach and penetrate into the large available market by giving scale down low-price solution and grab major market share.