Sheela Foam shares jump after Kurl-on acquisition. Stock rises 22% in two days
Stock market today: After announcement of acquiring Kurl-On and Furlenco Furniture, Sheela Foam shares have been in huge uptrend for the last two trade sessions. In last two sessions, Sheela Foam share price has surged from ₹1121.25 apiece on NSE to ₹1369.95 apiece levels, logging around 22 per cent rise in this time. Sheela Foam share price today opened with an upside gap and went on to hit intraday high of ₹1369.95 apiece on NSE, logging around 15 per cent rise within few minutes of stock market opening on Tuesday.
On Monday, Sheela Foam announced two simultaneous deals, with controlling stake in Kurlon Enterprises Limited (flagship brand Kurl-on --- Mattress of India) and a stake in Furlenco furniture (India’s fastest growing online furniture brand owned and operated by “House of Kieraya Private Limited" or “HOK"). Sheela Foam Ltd is acquiring 94.66% shareholding in KEL at an equity valuation of Rs. 2150 crores (cost of acquiring 94.66% around Rs.
2035 crs); subject to customary working capital, debt and debt like items and other adjustments, if any. The indicative time period for the completion of the acquisition is by or before 30th November 2023. Sheela Foam Ltd is also investing in 35% shareholding in HOK-Furlenco for an equity valuation of Rs.
857.14 crs (cost of investing in 35% stake is Rs. 300 crs); subject to customary working capital, debt and debt like items and adjustments, if any. The indicative time period for the completion of the investment will be by or before 30th August 2023.
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