Sham Foam

SME · BSE listed

-20.00%

Listing gain

Price Band

₹130

Issue Size

₹40.48 Cr

1 lot at upper band

₹1,30,000

Lot Size

1,000

Open

11 Aug 2026

13 Aug 2026

Allotment

—

Listing

18 Aug 2026

Scheduled dates

Open

11 Aug 2026
Close

13 Aug 2026
Refund

17 Aug 2026
Demat credit

17 Aug 2026
Listing

18 Aug 2026

Listing Performance

Listing Price

₹104

Listing Gain

-20.00%

Day Close

—

Current (LTP)

— (—)

GMP Trend*

Daily grey market premium (₹). Unofficial.

Latest GMP: ₹1.5 12 sessions

Subscription (times)

Latest per-category subscription · as of 13 Aug, 05:11 pm IST.

NII 2.17x

BHNI 0.37x

RII 2.62x

Total 2.40x

About Sham Foam

Sham Foam Limited is primarily engaged in manufacturing, distribution, marketing and selling of polyurethane foam (PU Foam), mattresses and other allied home comfort products targeted at Indian consumers. The company also manufactures industrial grades of PU Foam used across various industries in India. The company operates as a full-stack vertically integrated entity, controlling operations from conceptualizing and designing products to manufacturing, distributing and customer engagement. The company operates from a state-of-art manufacturing facility in Haryana with an installed capacity of 15,000 TPA for foam production and serves customers across 13 states through a pan-India dealer network of over 1,300 dealers.

www.shamfoam.com ↗

Strengths

Leveraging the experience of Promoters and employees

The company's promoters have proven background and experience in the foam industry, providing key competitive advantage and enabling business expansion while exploring new growth avenues.
In-house manufacturing facility supported by technology driven process

The company operates a state-of-art manufacturing facility with ISO 9001:2015 and BIS Certification, spanning 2,04,460 sq. feet with 15,000 TPA installed capacity and QR code integration for transparency.
Extensive and well-developed pan-India sales and distribution network

The company has established a strong sales and distribution network spanning 13 states with robust dealer base, providing natural entry barriers and conducting periodic training programs for dealers.
Long-standing relationship with dealers

The company has developed long-standing relationships with dealers across pan-India basis, ensuring uninterrupted supplies and retaining dealers through strong relationships and product quality.
Focus on Quality and Timely Delivery

The company maintains high-quality standards with ISO 9001:2015 and BIS Certification no. IS 7933:2022, emphasizing regular composition checks, in-process inspections, and final product testing.

Risk Factors

Outstanding litigation proceedings involving the Company and Promoters

The company, its promoters, and directors are involved in various legal proceedings pending at different levels of adjudication. Total amount involved across all litigation is Rs. 536.42 lakhs, with potential adverse outcomes impacting the company's reputation, business operations, and financial condition.
Registered office and manufacturing facility located on leased premises

The company's registered office and manufacturing facility is located on a 30-year lease from August 2025 to July 2055. If the lease agreements cannot be renewed or relocated on commercially suitable terms, it may cause significant operational disruptions and relocation costs.
Significant dependence on few customers

The company's top 10 customers contributed 25.06%, 26.83%, and 28.02% of revenue from operations for fiscal years 2026, 2025, and 2024 respectively. The company has no long-term agreements with customers, exposing it to risks from order reductions, cancellations, or customer loss.
Negative cash flows experienced in certain periods

The company reported negative net cash flows of Rs. 105.37 lakhs in FY 2024-25, primarily due to negative cash flows from financing activities of Rs. 96.47 lakhs and investing activities of Rs. 30.55 lakhs. Future negative cash flows could adversely affect financial conditions and operations.
Volatility in supply and pricing of raw materials

Raw material costs represented 78.75% of revenue from operations in FY 2025-26 (Rs. 7,270.04 lakhs). The company's top 10 suppliers constitute 78.56% of total purchases, and the company has no long-term supply agreements, exposing it to supply disruptions and price volatility.
Geographic concentration of operations and revenue

The company's manufacturing operations are concentrated in Haryana, with major domestic sales from customers in Delhi (11.45%), Haryana (12.98%), Punjab (21.13%), and Uttar Pradesh (27.34%). This geographic concentration heightens exposure to regional economic and demographic changes.

Objects of the Issue

To finance the Capital expenditure requirements for civil construction and purchase of Machineries and Equipment for existing manufacturing facility
The company intends to purchase additional machinery and equipment to be installed at a shed structure to be constructed at the existing manufacturing unit. This aims to enhance manufacturing capabilities, improve operational efficiencies, leverage economies of scale, and reduce operational costs while maintaining tighter control over delivery schedules.

14.72 crores
To part finance the requirement of Working Capital
The company requires additional working capital for investment in trade receivables, inventories, and payment to trade payables to fund day-to-day operations. The expansion of business operations and increased manufacturing capacities necessitate additional working capital requirements to handle higher volumes of orders and strengthen market presence.

14.25 crores
To meet General corporate purposes
The company intends to deploy funds towards strategic initiatives including investments or acquisitions, brand building and promotional activities, strengthening infrastructure and systems, repayment of loans, pre-operative expenses, provision for contingencies, and ongoing general corporate purposes as approved by the Board.

6.04 crores

Financial Snapshot

Annual values as reported in the offer document.

Year end	Revenue	Rev. growth	Profit	Profit growth	Assets	Equity	Operating cash flow
31/03/2026	92.39	+13.2%	8.65	+141.6%	49.32	21.11	12.78
31/03/2025	81.62	+10.5%	3.58	+20.5%	36.58	12.46	0.22
31/03/2024	73.89	—	2.97	—	33.55	8.88	7.30

Units: crores

Issue Details

Face Value: ₹10
P/E: 17.30
ROCE: 46.00%
Shares / Lot: 1,000
Minimum Bid: 2,000 shares
Refund: 17 Aug 2026
Credit to Demat: 17 Aug 2026
ISIN: INE0Z9N01013
CIN: U36104HR2020PLC087011
Registrar: Alankit Assignments Ltd.
Lead Managers: Corporate Makers Capital Ltd.
Registered Office: Khasra No. 18/16/2, Shahzadpur Yamunanager Road, NH-344, Village Rajpura, Tehsil Shahzadpur, Ambala City, Haryana-134202

DRHP ↗

Management

Mr. Rajinder Kumar JindalMD

Mr. Sanjeev Kumar JindalCEO

Ms. Monica JindalCOO

Mr. Abhinav JindalCFO

* Grey Market Premium is unofficial, indicative data from unregulated grey-market dealers. It is not published by NSE, BSE, SEBI or the issuer, and is not a forecast of the listing price.