Sheela Foam Completes Compensation for Fractional Entitlements Under Scheme of Arrangement

Sheela Foam Completes Compensation for Fractional Entitlements Under Scheme of Arrangement​

Sheela Foam Limited has completed the compensation process for fractional entitlements related to a composite scheme of arrangement involving multiple entities. The distribution of sale proceeds to eligible shareholders was finalized on May 08, 2026, following the sale of fractional shares allotted under the scheme.

The composite scheme of arrangement involved Belvedore International Limited, Kanvas Concepts Private Limited, Kurlon Retail Limited, Komfort Universe Products & Services Limited, Starship Value Chain and Manufacturing Private Limited, into Kurlon Enterprise Limited, and subsequently into Sheela Foam Limited. This arrangement received approval from the National Company Law Tribunal, Mumbai Bench, on September 17, 2025.

In terms of the scheme, eligible equity shareholders of Kurlon Enterprise Limited, whose record date was January 30, 2026, were allotted equity shares of Sheela Foam Limited on February 03, 2026. The allotment followed a share exchange ratio of 52 fully paid-up equity shares of Rs. 5 each of the Company for every 100 fully paid-up equity shares of Rs. 5 each of Kurlon Enterprise Limited.

The Company allotted a total of 4,88,146 equity shares of Rs. 5 each, which included 575 equity shares of Rs. 5 each, identified as the "Fractional Shares." To manage these shares, the Board of Directors appointed the 'Sheela Foam Limited Fractional Shares Trust 2025,' managed by Axis Trustee Limited, to hold the Fractional Shares in trust on behalf of the eligible equity shareholders of Kurlon Enterprise Limited.

Sale and Distribution of Proceeds​

The Fractional Shares were required to be sold in the open market within 90 days from the date of allotment, with the net proceeds distributed to the respective eligible equity shareholders of Kurlon Enterprise Limited proportional to their respective fractional entitlements. Accordingly, the Fractional Shares were allotted directly to the 'Sheela Foam Limited Fractional Shares Trust 2025' and were sold in the open market at market price on April 22, 2026.

The distribution of the sale proceeds, after deducting incurred expenses, was completed on May 08, 2026.

The financial details of the compensation are summarized below:


The remaining amount of 16,489.9 is currently held in the account due to the non-availability or incomplete bank details of certain eligible shareholders. Should these amounts not be claimed by the respective shareholders, they will be transferred to the Investor Education and Protection Fund (IEPF) account or designated funds as required by applicable laws.

Based on the completion of the distribution, both the Audit Committee of the Board of Directors and the Independent Directors of Sheela Foam Limited submitted reports certifying that the Company successfully compensated the eligible equity shareholders by distributing the sale proceeds of the fractional entitlements in accordance with the scheme provisions.

SFL Stock Price Movement​

Today, Sheela Foam Limited shares edged higher, concluding the trading day at ₹543.35, representing a gain of 0.67%. The stock saw robust investor interest, completing the session on a volume of 112,883 shares.