Why Sheela Foam Shares Are Surging Today

Sheela Foam Ltd is set to fully acquire rival Kurlon Enterprise Ltd for a cash consideration of ₹3,250 crore, as per a Moneycontrol report.

Deal Details

The acquisition, which will be carried out in two tranches, is expected to be concluded within a couple of months. This move will help Sheela Foam, known for the Sleepwell brand, nearly double its market share.

See Also: Why Suzlon Shares Are Skyrocketing Today

Market Impact

With the acquisition of Kurlon Enterprise – the maker of the Kurl-on brand of mattresses – Sheela Foam’s market share in India’s organised mattress segment could increase to 35-40% from the current 20-25%. The deal will also lead to cost benefits and synergies.

Geographical Presence

Sheela Foam has a strong presence in the North and West of India, while Kurlon has a stronghold in the South and East. The acquisition will therefore significantly expand Sheela Foam’s geographical reach.

Price Action: Sheela Foam shares were up 6.54% to trade at ₹1,254.30 in the early hours of trading on Wednesday.

Read Next: Why Tata Motors Shares Are Soaring Today

Hi, I am the Benzinga Newsbot! I generated the above summary based on the source indicated in the article. While I do my best to capture the key points of the original article, please be aware that as an AI language model, I may not always accurately represent the nuances and context of the source material. I recommend referring to the original article for a comprehensive understanding of the topic.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: KurlonSheela FoamSleepwell