India New Issue-Sheela Foam to tap bond market with maiden issue likely in 2 weeks - bankers

Sheela Foam

25/09/2023 11:45

By Bhakti Tambe
       MUMBAI, Sept 25 (Reuters) - India's Sheela Foam
 SHEF.NS  is likely to raise 6 billion rupees ($72.19 million)
through the sale of bonds maturing in three and five years
marking its maiden bond issue, two merchant bankers said on
Monday.
    The foam and mattress manufacturer may invite coupon and
commitment bids for the issue in the next two weeks, they added.
    The proposed bonds are rated AA by India Ratings and the
fundraising comes at a time when the company has announced that
it plans to acquire 94.66% shares of Kurlon Enterprises and
around 35% of House of Kieraya in July. 
    These acquisitions would be funded through a mix of debt,
equity raise through qualified institutional placement, and the
rest through internal accruals, India Ratings said in a rating
note on Monday.  
    Sheela Foam did not immediately respond to a Reuters'
request for comment and is yet to formally announce the bond
sale. 
    
($1 = 83.1100 Indian rupees)

 (Reporting by Bhakti Tambe; Editing by Nivedita Bhattacharjee)
 ((Bhakti.Tambe@thomsonreuters.com))