Sheela Foam Limited , a leading manufacturer of foam products, has taken significant steps to implement a complex merger scheme involving multiple companies. The company's Board of Directors has constituted an Amalgamation Committee to oversee and execute a composite scheme of arrangement.

Merger Scheme Details

The scheme involves the merger of five companies into Kurlon Enterprise Limited, which will subsequently merge into Sheela Foam Limited. The companies to be merged are:

1. Belvedore International Limited
2. Kanvas Concepts Private Limited
3. Kurlon Retail Limited
4. Komfort Universe Products And Services Limited
5. Starship Value Chain and Manufacturing Private Limited

This multi-step merger process aims to consolidate operations and potentially streamline the company's structure.

Committee Formation and Authority

The newly formed Amalgamation Committee comprises members of the Board of Directors. It has been granted full authority to oversee, implement, and take all necessary actions related to the scheme's execution. This move demonstrates Sheela Foam's commitment to ensuring a smooth transition and effective implementation of the merger plan.

Regulatory Approval and Next Steps

The company has received approval for the scheme from the National Company Law Tribunal (NCLT), Mumbai Bench. Sheela Foam will inform the stock exchanges about the effective date of the scheme once the certified copy is filed with the Registrar of Companies.

Leadership Changes

In light of the merger, Sheela Foam has also announced changes to its top leadership:

• Mr. Rahul Gautam has been appointed as the Chairman and Managing Director of the company, effective immediately.
• Mr. Tushaar Gautam has been elevated to the position of Vice Chairman and Joint Managing Director.

These appointments are aimed at strengthening the operational leadership following the merger of Kurlon Enterprise Limited and its subsidiaries with Sheela Foam Limited.

Financial Performance

Sheela Foam reported the following consolidated financial results:

The company's performance reflects a challenging business environment, with a slight increase in revenue compared to the previous quarter but a decrease in profit.

Future Outlook

With the merger scheme in progress and new leadership in place, Sheela Foam appears to be positioning itself for potential growth and operational efficiencies. The company's ability to successfully integrate the merging entities and capitalize on potential synergies will be crucial for its future performance in the competitive foam and mattress market.

Sheela Foam Limited , a leading manufacturer of foam-based products, has reported mixed financial results for the quarter ended September 30, 2025.

Financial Performance

Revenue

Sheela Foam's consolidated revenue from operations for the quarter stood at ₹874.94 crore. On a standalone basis, the company reported revenue from operations of ₹566.60 crore, slightly down from ₹574.75 crore in the previous quarter.

Profit

The company's consolidated profit after tax for the quarter was ₹9.96 crore. On a standalone basis, profit after tax declined to ₹5.65 crore from ₹10.70 crore in the previous quarter, representing a decrease of approximately 47.20%.

Exceptional Losses

Sheela Foam recorded exceptional losses of ₹7.84 crore due to the sale of certain land and buildings in Uttarakhand and Bangalore, which impacted the overall profitability for the quarter.

Corporate Developments

Amalgamation Scheme

The Board of Directors approved the amalgamation scheme of subsidiary Kurlon Enterprises Limited, which was sanctioned by the National Company Law Tribunal on September 17, 2025.

Financial Ratios

For the quarter, Sheela Foam reported the following key financial ratios:

These ratios indicate potential challenges in the company's short-term liquidity and debt servicing capacity.

Outlook

While Sheela Foam faces challenges in maintaining profitability, the approval of the amalgamation scheme with Kurlon Enterprises Limited may contribute to long-term growth and value creation for shareholders. The company's ability to improve its financial ratios and manage exceptional losses will be crucial for its future performance.