Sheela Foam Shares Jump Close To 15% After Kurlon Deal

Shares of Sheela Foam Ltd, the maker of mattress brand Sleepwell, jumped over 15 per cent on Tuesday after the company said it will acquire a 94.66 per cent stake in Kurlon Enterprises Ltd for Rs 2,035 crore.

The stock zoomed 14.76 per cent to Rs 1,363.55 apiece on the BSE after a positive beginning.

At the NSE, it jumped 15.40 per cent to Rs 1,369.95 apiece.

The market valuation of the company also went higher by Rs 938.09 crore to Rs 12,529.86 crore in morning trade.

The company also said it will acquire a 35 per cent stake in online furniture firm House of Kieraya Pvt Ltd for Rs 300 crore.

The company's board at its meeting held on July 17, 2023, has approved the acquisition of Kurlon Enterprise Ltd and House of Kieraya Pvt Ltd, Sheela Foam said in a regulatory filing on Monday.

"The company is acquiring 94.66 per cent of KEL's (Kurlon Enterprises Ltd ) share capital at an equity valuation of Rs 2,150 crore, subject to customary adjustments for net working capital, debt and surplus cash, if any," it said.

In a statement, the company said the cost of acquiring 94.66 per cent in KEL is around Rs 2,035 crore.

KEL deals mainly in the manufacturing and marketing of foam and coir-based home comfort products across the 'sit and sleep' categories like mattresses, furniture cushions, pillows and coverings.