Sarva Foam Industries Files DRHP For IPO, Fresh Issue To Fund New Manufacturing Facility And Cut Debt

Mumbai: Sarva Foam Industries Limited, a Bhopal-based company, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO will entail issuing up to 54 lakh equity shares and offering-for-sale (OFS) up to 13.50 lakh shares by promoter Kunal Giani, each with a face value of Rs 5.

The company intends to utilize Rs 90 crore from the fresh issue to establish a new manufacturing facility for rebonded polyurethane (PU) foam products. An additional Rs 30 crore will be allocated to repay or prepay existing debts, with the remaining funds to be used for general corporate purposes. Prior to filing the DRHP, Sarva Foam may conduct a pre-IPO placement, with any funds raised reducing the scope of the fresh issue.

Established in 2018, Sarva Foam is India's leading rebonded PU foam manufacturer and trader, holding an estimated 33% market share in FY26 and being the top exporter in the segment. Products encompass rebonded foam sheets, blocks, and carpet underlays, which are utilized in various applications such as mattresses, furniture, industrial conversions, carpets, sports flooring, and acoustic flooring.

The company operates four manufacturing units located in Dadri, Silvassa, and Krishnagiri, with a combined annual capacity of 15,500 metric tonnes as of March 31, 2026. Sarva Foam's revenue from operations reached Rs 206.12 crore in FY26, up from Rs 174.84 crore in FY25. The company exports its products to destinations including the UK, Australia, Qatar, and Ireland, and also produces specialized grades like memory foam, high-resilience rebonded foam, and fire-retardant foam.

The shares are scheduled for listing on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with Beeline Capital Advisors acting as the book-running lead manager and Bigshare Services as the registrar.