Shares of Sheela Foam Ltd. surged over 15% on Tuesday after it said it was buying a controlling stake in Kurlon Enterprise Ltd. and a stake in Furlenco Furniture.
The company said it is acquiring a 94.66% stake in Kurlon Enterprise Ltd. at an equity valuation of Rs 2,150 crore, subject to customary adjustments for net working capital, debt, and surplus cash, if any, according to an exchange filing.
Sheela Foam will also pick up a 35% stake in the rental furniture service company Furlenco. The deal is valued at Rs 300 crore, subject to customary working capital and other adjustments.
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Shares of the company jumped 15.41%, the most since June 12, before trading 8.25% higher at 10:22 a.m., compared to a 0.29% advance in the Nifty.
The total traded quantity so far in the day stood at 29.7 times the 30-day average volume. The relative strength index stands at 69.51.
Of the five analysts tracking the stock, four maintain a 'buy' and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 0.1%.
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