This home furnishing midcap stock postpones bonus share date

Sheela Foam, the furniture, and home furnishing company, in its latest filing with the exchanges on December 24, 2022, issued a clarification about the allotment of bonus shares. The company said that the date of bonus shares to be credited/dispatched will be latest by January 7, 2023, instead of December 30, 2022.

Consequently, bonus shares to eligible investors will now be credited or dispatched at a later date.

The company’s shares got ex-bonus for its bonus share in the 1:1 ratio on December 21, while the record date intimated for the purpose of determining shareholders’ eligibility for the bonus share issue was December 22, 2022.

This is the first-ever bonus share issue announced by the company.

Earlier today, media reports suggested that Sleepwell's owner, Sheela Foam, would soon buy out its competitor Kurlon for Rs 2,000 crore.

In November, the company’s board approved the merger of ICTPL with Sheela Foam.

“As of the date of the approval of the scheme by the company, ICTPL is unlisted and wholly owned by the company,” added the company filing.
Sheela Foam is a multibagger stock with a 3-year return of 102%, while in the last 1 year, it has underperformed with a negative return of 16%.

The stock, during the last week, hit its new 52-week low. The stock's 52-week low and high prices are Rs 1202.65 and Rs 2027.5, respectively.

The consensus recommendation on the counter from 4 analysts is Buy, according to Trendlyne data. The highest target for the stock is Rs 1915, an upside of 34% from the current market price.

Commanding a market valuation of Rs 12,653 crore, Sheela Foam is a leader in polyurethane foam. Established in 1971, the company’s winning brands include Sleepwell, Featherfoam, and Lamiflex.