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Sham Foam SME IPO lists at a discount, hits lower circuit
Shares began trading at ₹104 after the ₹130 issue price, fell to ₹98.80, and the IPO raised ₹40.48 crore via a 31.14 lakh share fresh issue.
Sham Foam’s SME IPO listing on India’s markets got off to a weak start on Tuesday, 18 August, with shares opening at ₹104, 20% below the issue price of ₹130, according to LiveMint Markets.
After extending early losses, the stock hit its lower price band of ₹98.80, down 24% from the issue price. The article also cited grey market indications suggesting only a modest premium at listing.
LiveMint Markets reported that the IPO was a fresh issue of 31,14,000 shares at ₹130 to raise ₹40.48 crore. The subscription reached 2.40 times overall, with the issue having opened on 11 August and closed on 13 August.
The outlet said the company plans to use net proceeds to fund capital expenditure for civil construction and to buy machinery and equipment for its existing manufacturing facility, with some proceeds also earmarked for working capital and general corporate purposes. Sham Foam is engaged in polyurethane foam, mattresses, and related home comfort products, and it reported revenue from operations rising from ₹73.73 crore in FY24 to ₹92.32 crore in FY26.