Shares of Sheela Foam Ltd. ended the day 4% up after touching a day’s high of Rs 919.95 on 8th October, following the firm’s announcement that it will acquire a 10.5% stake in House of Kieraya Limited (operating as Furlenco), a furniture rental company, for Rs 107 crore.

The firm’s board approved an investment in House of Kieraya Limited during its meeting on 8th October 2024.

The investment includes subscribing to 5.04 million shares through a rights issue, exercising partly paid-up warrants for 5.6 million shares, and purchasing up to 350,000 shares from existing shareholders.

The investment in House of Kieraya is a related party transaction involving Sheela Foam’s promoter group as directors but is
conducted on an arm’s length basis.

Furlenco was founded in 2012 by Ajith Mohan Karimpana and has experienced strong growth in major Indian markets like Bengaluru, Mumbai, and Delhi NCR. They reported revenues of Rs 129 crore in FY22, Rs 157 crore in FY23, and Rs 152 crore in FY24.

The acquisition process requires no regulatory approvals and is expected to be completed by 14th October 2024.

Currently, the company’s market capitalisation stands around Rs 9,868 crore.

At 3:30 PM, the shares of Sheela Foam closed 4.18% higher at Rs 909 on NSE.

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