Sham Foam Limited

Incorporated in 2020, Sham Foam manufactures, distributes, markets, and sells PU foam, mattresses, and allied home comfort products for the Indian market, alongside industrial-grade PU foam used in furniture, apparel, sports goods, and automotive applications. The company's diversified product portfolio spans mattresses, pillows, cushions, furniture cushioning, and PU foam cores, with mattresses sold under Featherfresh and Restivia in both pure-foam and hybrid (spring and rebonded foam) variants, and pillows and cushions marketed primarily under Featherfresh.

As a vertically integrated business, the company manages the full value chain from product design and engineering through manufacturing, distribution, and customer engagement. Its manufacturing facility in Ambala, Haryana spans over 2,04,460 square feet, is ISO 9001:2015 and BIS (IS 7933:2022) certified, and has an installed foam production capacity of 15,000 TPA (tonnes per annum).

The company distributes across 13 Indian states, including Bihar, Chandigarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Uttar Pradesh, and Uttarakhand, supported by a pan-India sales and dealer network. The promoters are Rajinder Kumar Jindal, Sanjeev Kumar Jindal, Monica Jindal, Deepika Jindal, Abhinav Jindal, Kunal Jindal, and Charming Fashions Private Limited, who together held 100 percent of the company pre-issue.

The Sham Foam IPO is a 100 percent fresh issue Fixed Price offering of 31,14,000 equity shares at a fixed price of ₹130 per share, aggregating up to ₹40.48 crore, with 1,56,000 shares reserved for the market maker and no offer-for-sale component.

Proceeds are allocated toward capital expenditure for civil construction and machinery at the existing facility (₹14.72 crore), partial working capital funding (₹14.25 crore), and general corporate purposes (₹6.04 crore). On financial performance, revenue grew a modest 13 percent from ₹81.62 crore in FY2025 to ₹92.39 crore in FY2026, while profit after tax surged 142 percent, from ₹3.58 crore to ₹8.65 crore, driven by EBITDA margin more than doubling from 5.75 percent to 11.91 percent alongside a sharp reduction in total borrowings.

An independent review characterized this FY2026 profit surge as appearing to be "window dressing" intended to secure a richer IPO valuation, and assessed the issue as "aggressively priced," recommending it only for well-informed, cash-surplus, risk-tolerant investors seeking a long-term holding period — among the more direct and skeptical characterizations of pre-IPO financial performance seen across recent SME issues. Investors should weigh the company's established manufacturing base, brand presence, and pan-India distribution network against this specific, pointed caution regarding the sustainability and quality of its most recent year's earnings growth.