IBFS PROJECT

SHEELA FOAM LTD.

ISSUE TYPE: DEBT

PREPARED BY:
ISHAAN DUA (2K19/BBA/39)
HARSHIT BHATIA (2K19/BBA/35)
 Registered Company Sheela Foam Private Limited
Name

ABOUT COMPANY Registered Address 604 Ashadeep, 9 Hailey Road,

New Delhi -110092

• Founded in 1972, Sheela Foam Pvt.

Ltd, pioneered the manufacturing of Website https://www.sheelafoam.com
P.U. Foam in India. Today, they are
ranked amongst the top 5
manufacturers of Slab stock P.U. Foam
in South East Asia with a footprint in CIN Number L74899DL1971PLC005679
India and Australia.

PAN Number AAACE3872E

GST Number 09AAACS0189B1ZM

 BUSINESS
• Sheela Foam Pvt. Ltd. manufacture a wide range of PU Foam in India. Over the last 30 years
they have made giant strides not only in manufacturing capabilities but also in their methods
of testing & ensuring quality.
• In India, they have 11 manufacturing units using the state-of-the-art technology at strategic
locations across the country. Three of its facilities located in Greater Noida Talwada and
Hyderabad are ISO: 9001 certified. They serve a wide spectrum of customers in a fast and
economical manner through a distribution network of over 70 distributors and 3000 dealers. A
combination of manufacturing excellence and distribution network has enabled us to get over
40% of the Indian P.U. Foam market share.
• Sleep well and Feather Foam brands are leading and most trusted names in home comfort
products and industrial foam respectively in India
• In addition to standard P.U. Foam, they manufacture a wide variety of Technical Foams i.e.,
Memory, Flame Retardant, High Resilience, Reticulated, etc
• Rubberized coir pads manufactured by them are used in our comfort products and are also
exported to various countries.
• Joyce Foam, Australia - Joyce foam, Australia is a 100% subsidiary of the Sheela Group.
Joyce Foam is a leading manufacturer of flexible polyurethane foam with more than 35%
market share in Australia. In Australia they have 5 manufacturing units. These are located in
five major cities i.e. Adelaide, Brisbane, Melbourne, Perth and Sydney which enables us to
service the Australian market effectively.
TOP 5
COMPETITORS
•Major Competitors of Sheela
Foam limited are Emami,
Hindustan Unilever Limited,
Marico and Dabur India.
 Company Name Current Market Price Market Cap Debt to
(Rs) (Cr) Equity

Sheela Foam Ltd 2659.05 12,971.59 0.17

COMPETITOR HUL 2411.35 566,568.69 0.00

ANALYSIS Dabur India 610.55 107,936.48 0.06

Godrej 960.05 98,172.90 0.08
Consumer

Marico 555.0 71,702.84 0.11

SHAREHOLDING PATTERN
 • We need finance for:
 Expansion of our business to United States of
America by setting up a subsidiary there.
 Introduction of low cost Mattresses
like "Starlite" and "Feather Foam" to
capture higher market share.
We are planning to raise INR 400 Cr.
REASON FOR

through debt.
We are planning to raise the entire sum of INR
FINANCE 400 Cr. through  Secured Non-convertible
debentures.

• Why Debt?
 Sheela Foam ltd. has very low long-term debt.
 Less expensive.
 More Control
 SOURCE OF FUNDS

Type of security Non-Convertible Debentures

Size of issue INR 4,000,000,000

Face Value INR 10,000

Pricing and Interest 400,000 Debentures of issue price Rs. 10,000 each coupon rate:
8% p.a.

Duration of funds 5 years

Frequency of Interest payment  Annual

Credit Rating CRISIL A+

CAPITAL
STRUCTURE
 Amount in Cr.

Particulars Pre-Issue March Post-Issue March

2021 2022
Debt:
Short Term Debt 314.88 314.88
Long Term Debt 99.26 499.26
Total Debt 414.14 814.14
CAPITAL
STRUCTURE Shareholders Fund:
Share Capital 24.39 24.39
Reserves and Surplus 988.98 988.98
Total Shareholders 1013.37 1013.37
Fund

Long-term 0.09 0.49

Debt/Shareholders
Funds
PAST FINANCIALS

Amount in Cr.
 PAST FINANCIALS

IMPORTANT RATIOS:
RATIOS​ MAR 2021​ MAR 2020​ MAR 2019​ MAR 2018​ MAR 2017​

Current ratio​ 1.83​ 2.36​ 2.22​ 1.83​ 1.54​

Debt to equity​ 0.00​ 0.00​ 0.00​ 0.00​ 0.01​

Net Profit
10.72​ 9.43​ 6.81​ 7.60​ 7.78​
margin (%)​

Return on assets
12.68​ 14.15​ 12.09​ 14.17​ 14.34​
(%)​

Asset turnover
118.35​ 150.04​ 177.32​ 12.76​ 12.96​
ratio (%)​
 FUTURE PROJECTIONS
Amount in Cr. FY21-22 FY22-23 FY23-24 FY24-25
Sales 1594 1562 1880 2199
Other Income 166.8 206.2 239.5 273
Total Income 1760.8 1768.2 2119.5 2473
Total Expenditure 1313.6 1256.3 1199.6 1142.6
EBIT 447.2 511.9 919.9 1330.4
Interest 17.96 20.00 22.05 24.09
Tax 85.20 92.22 99.24 106.26
Net Profit 344.04 399.68 798.61 1200.05
 • Investors will receive interest
OFFER FOR annually on NCDs worth of INR
INVESTORS 400 Cr., 400,000 Debentures of
issue price INR 10,000 each at
8% p.a. for 5 years.
THANK YOU