Sheela Foam in the green

Sheela Foam,makers of Sleepwell mattresses is right there among the top five gainers on the BSE; the stock, which had closed yesterday at Rs.1188.10, opened today 9.5% higher at Rs.1300 and rose further to an intraday high at Rs.1363.55, up almost 15%.

The stock price reacted positively on news that the company has agreed to buyout its rival, Kurlon by picking up a 95% stake at an equity valuation of Rs.2150 crore.

This apart, the company has also picked up a 35% stake in furniture rental company, Furlenco, also known as House of Kieraya, for Rs 300 crore.

The company plans to raise Rs.1,500 crore through a mix of debt and equity to fund the twin stake purchases.