Sheela Foam Limited has acquired control over House of Kieraya Limited, commonly known as Furlenco, converting the entity from a jointly controlled venture to a subsidiary effective October 1, 2026. This strategic move allows the mattress major to enter the fast-growing branded furniture market without any monetary consideration.

The transition was executed through an amendment agreement signed on October 1, 2026, with House of Kieraya and its significant shareholders. The amendment modified specific Affirmative Vote Matters in the original Shareholders' Agreement dated July 17, 2023. These governance changes shifted control rights to Sheela Foam, triggering the change in accounting status under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

No cash outlay involved

The transaction did not involve any transfer of shares or payment of monetary consideration. Sheela Foam continues to hold 34.53% equity shares in House of Kieraya. The change in status is purely contractual, driven by the restructuring of voting rights rather than an increase in shareholding percentage. Consequently, no governmental or regulatory approvals were required for this internal restructuring.

Target entity profile

House of Kieraya operates as a tech-driven furniture company with a strong online presence in Bengaluru, Mumbai, and Delhi NCR. Founded in 2012 by Ajith Mohan Karimpana, the company has demonstrated rapid revenue expansion over the last three fiscal years.

The promoter group holds an interest in House of Kieraya through directorship and representation. However, the filing states that the amendment does not involve any related party payment or share transfer, distinguishing it from a traditional acquisition.

What the Numbers Show

The data reveals a significant divergence between ownership stake and operational control. While Sheela Foam holds only 34.53% equity, the amendment to Affirmative Vote Matters granted it decisive control, bypassing the need for majority equity acquisition. Furthermore, the target’s revenue trajectory indicates robust growth: turnover rose from ₹152 crore in FY24 to ₹375 crore in FY26. This represents a substantial scale-up in the online furniture segment, which Sheela Foam can now consolidate into its financial statements, potentially enhancing its revenue base without diluting capital through a cash purchase.

Sheela Foam Ltd will hold a group investor meeting on September 29, 2026, at 11:00 am IST. The session will be conducted virtually as part of the Bharat Connect Conference: Rising Stars event.

The company’s management representatives will interact with analysts and investors during this scheduled interaction. The meeting falls under Para A of Part A of Regulation 30(6) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Meeting details

The company noted that the schedule might change due to unforeseen circumstances involving the analysts, investors, or the company itself.

Disclosure compliance

Sheela Foam confirmed that no unpublished price sensitive information (UPSI) is intended to be discussed during the interactions. The intimation was filed with both BSE and NSE on September 22, 2026.