Kurl-On’s Transformation into Sheela Foam | What Happened to Kurlon Unlisted Shares?
Company: Kurlon Enterprise Limited
CIN: U36101MH2011PLC222657
ISIN: INE387W01025
Sector: Mattresses, Foam & Home Comfort
Status: Amalgamated / No Longer a Separate Company
Acquiring Company: Sheela Foam Limited
Brand: Kurl-On
Merger Effective: 2026
Exchange Ratio: 52 Sheela Foam shares for every 100 Kurlon Enterprise shares
⚠️ Important Update for Investors
Kurlon Enterprise Limited is no longer an active standalone investment opportunity.
A Composite Scheme of Arrangement involving Kurlon Enterprise Limited and its subsidiaries with Sheela Foam Limited was approved by the National Company Law Tribunal, Mumbai Bench, on 17 September 2025. The scheme subsequently became effective, and Kurlon Enterprise was amalgamated into Sheela Foam.
The transaction involved:
Kurlon Enterprise + Kurlon Retail + Komfort Universe + Belvedore International + Kanvas Concepts + Starship Value Chain
↓
Sheela Foam Limited
Consequently, Kurlon Enterprise shareholders received shares of Sheela Foam under the approved share-swap arrangement.
Share-Swap Ratio
Under the approved scheme:
100 Kurlon Enterprise shares → 52 Sheela Foam shares
The record date was 30 January 2026.
Sheela Foam allotted 4,88,146 equity shares to eligible Kurlon Enterprise shareholders on 3 February 2026.
Therefore, investors who previously held Kurlon Enterprise shares should now look at their Sheela Foam share entitlement, rather than treating Kurlon Enterprise as a continuing unlisted company.
What Happened to the Kurlon Business?
The important point is that the Kurl-On brand itself has not disappeared.
Instead, the brand has become part of the larger Sheela Foam platform.
Sheela Foam acquired Kurl-On in 2023 and subsequently integrated the business into its wider mattress, foam and home-comfort ecosystem.
Today, Kurl-On operates as one of the key consumer brands within Sheela Foam.
Sheela Foam describes Kurl-On as:
- A leading brand in South and East India
- India’s second-most recognised mattress and home-furnishing brand
- Approximately 11% share of the Indian mattress market
- More than 5,500 retail touchpoints
- More than 500 exclusive brand outlets
Kurl-On Brand
Kurl-On has a history going back more than seven decades and became one of India’s best-known mattress and rubberised-coir brands.
The brand has historically been particularly strong in:
- Rubberised coir mattresses
- Foam mattresses
- Spring mattresses
- Pillows
- Furniture
- Home furnishings
- Other sleep and comfort products
Its key competitive advantage has been its established brand recognition and distribution network.
Why Did Sheela Foam Merge Kurlon?
The merger was strategically designed to create a more integrated home-comfort business.
Previously:
Sheela Foam → Sleepwell
Kurl-On → Separate operating structure
After integration:
Sleepwell + Kurl-On + Foam Manufacturing + Retail + Distribution
This creates a larger platform with greater manufacturing scale, distribution reach and brand diversification.
Sheela Foam describes its business model as an integrated design → manufacturing → distribution → retail platform.
FY26 — The First Major Year of Integration
The financial results after integration provide an important indication of whether the Kurl-On acquisition is working.
Sheela Foam Consolidated FY26
| Particular | FY25 | FY26 |
|---|---|---|
| Revenue from Operations | ₹3,439 Cr | ₹3,821 Cr |
| EBITDA / PBITDA | ₹376 Cr | ₹448 Cr |
| Profit Before Tax | ₹103 Cr | ₹182 Cr |
| PAT | ₹90 Cr | ₹161 Cr |
| Operating Revenue Growth | — | ~11% |
Sheela Foam reported consolidated FY26 revenue of ₹3,820.84 crore and profit of ₹160.85 crore, compared with ₹3,439.20 crore revenue and ₹90.09 crore profit in FY25.
This represents approximately:
Revenue Growth: ~11%
PAT Growth: ~79%
The company has stated that FY26 was a year of realising the benefits of the Kurl-On acquisition and integration, with both Sleepwell and Kurl-On delivering strong growth.
EBITDA Improvement
One of the most encouraging developments is operating profitability.
FY26 consolidated profit before finance cost, depreciation and tax was:
₹447.64 Cr
versus:
₹375.90 Cr in FY25
Core EBITDA was reported at approximately ₹414 crore, up around 46% according to the company’s FY26 investor communication.
This suggests that the combined platform is beginning to benefit from:
- Scale
- Better product mix
- Manufacturing efficiency
- Integration synergies
- Higher volumes
- Operating leverage
Manufacturing & Distribution
The combined Sheela Foam platform has a significant manufacturing and distribution footprint.
The company currently highlights:
12+ manufacturing plants
and:
250+ distribution points
across different verticals.
The retail network exceeds:
5,500 exclusive outlets
with more than:
20,000 total touchpoints across India.
This is an important strategic advantage because mattress and home-comfort products are relatively bulky and distribution efficiency can materially affect economics.
Kurl-On’s Strategic Importance
Kurl-On gives Sheela Foam exposure to a different customer base and geographical strength.
The company specifically describes Kurl-On as having strong positioning in:
South India + East India
where natural-material mattresses and rubberised-coir products have traditionally had strong consumer acceptance.
This complements Sleepwell’s broader national presence.
Investment Thesis Has Changed
Before the merger, the investment thesis for Kurlon Enterprise was:
Buy Kurl-On shares in the unlisted market and potentially benefit from a future IPO / corporate transaction.
That thesis is now obsolete.
The new thesis is:
Kurl-On has become part of Sheela Foam, and the value creation opportunity now lies in the performance of the combined listed company.
This is an important distinction.
What Happened to Existing Kurlon Shareholders?
Existing eligible shareholders of Kurlon Enterprise received Sheela Foam shares based on the approved exchange ratio.
Example
Suppose an investor held:
1,000 Kurlon Enterprise shares
Under the 52:100 ratio:
1,000 × 52 / 100 = 520 Sheela Foam shares
Therefore:
1,000 Kurlon shares → 520 Sheela Foam shares
Fractional entitlements were handled under the scheme, including through a fractional-share trust.
Current Status
Kurlon Enterprise
❌ No longer a standalone company
Kurl-On Brand
✅ Active
Sheela Foam
✅ Active and listed
Kurlon Share Trading
❌ No continuing standalone Kurlon equity opportunity
New Investment Opportunity
Sheela Foam Limited
FY26 Sheela Foam Investment Snapshot
| Metric | FY26 |
|---|---|
| Consolidated Revenue | ₹3,820.84 Cr |
| Consolidated PAT | ₹160.85 Cr |
| EBITDA/PBITDA | ₹447.64 Cr |
| Core EBITDA | ~₹414 Cr |
| Revenue Growth | ~11% |
| PAT Growth | ~79% |
| Kurl-On | Integrated |
| Sleepwell | Core brand |
| Retail Touchpoints | 20,000+ |
| Exclusive Outlets | 5,500+ |
| Manufacturing Plants | 12+ |
Key Positives of the Combined Business
| Positive | Why It Matters |
|---|---|
| Kurl-On Brand | Strong consumer recognition |
| Sleepwell Brand | National-scale mattress franchise |
| Scale | Larger manufacturing platform |
| Distribution | 20,000+ touchpoints |
| Retail | 5,500+ exclusive outlets |
| Integration Benefits | Better utilisation of combined infrastructure |
| FY26 Growth | Revenue +11% |
| Profit Growth | PAT +79% |
| Foam Business | Additional earnings engine |
| Furlenco Exposure | Additional home-comfort ecosystem opportunity |
Key Risks
1. Kurl-On Is No Longer a Separate Security
Investors cannot simply purchase Kurlon Enterprise shares and participate independently in Kurl-On’s future.
2. Integration Risk
The value of the acquisition depends on successfully integrating manufacturing, distribution, employees, brands and systems.
3. Mattress Competition
The industry includes:
- Sleepwell
- Kurl-On
- Duroflex
- Wakefit
- Peps
- SleepyCat
- Springwel
- Multiple regional brands
4. Consumer Shift Toward D2C
Online mattress brands are changing the way consumers discover and purchase mattresses.
5. Raw Material Prices
Foam, chemicals, rubberised coir and other input costs can influence margins.
6. Working Capital
Large distribution networks and retail inventory can create working-capital requirements.
Investment View
Kurl-On — A Successful Transition from Unlisted Subsidiary to Integrated Listed Platform
Kurl-On remains an important Indian mattress brand, but Kurlon Enterprise Limited should no longer be marketed as a standalone unlisted investment opportunity.
The NCLT-approved merger has fundamentally changed the structure.
The more interesting development is what happened after integration:
FY26 Sheela Foam
Revenue: ₹3,821 Cr
PAT: ₹161 Cr
Revenue Growth: ~11%
PAT Growth: ~79%
The company itself has attributed the improvement partly to the successful integration of the Kurl-On business, with both Sleepwell and Kurl-On showing strong performance.
Therefore, for investors who were originally interested in Kurl-On, the relevant security today is:
Sheela Foam Limited
—not Kurlon Enterprise.
UnlistedCart Conclusion
Kurl-On: Brand Still Strong | Kurlon Enterprise: Amalgamated
Kurl-On Brand: ⭐⭐⭐⭐⭐
Brand Recognition: ⭐⭐⭐⭐⭐
Distribution: ⭐⭐⭐⭐⭐
Integration Potential: ⭐⭐⭐⭐
Financial Momentum: ⭐⭐⭐⭐½
Standalone Kurlon Investment Availability: ❌
Current Investment Vehicle: Sheela Foam Limited
Investment View: CORPORATE ACTION COMPLETED — FOLLOW SHEELA FOAM
The Kurl-On story has effectively moved from an unlisted-company opportunity to a listed-company integration story.
For UnlistedCart, I recommend keeping the old Kurlon page only as a historical/corporate-action page, with a prominent banner:
“Kurlon Enterprise has been amalgamated into Sheela Foam Limited. Kurlon Enterprise is no longer a separate investable security.”
Then redirect investors toward the Sheela Foam investment story.
Disclaimer
This report is for informational and research purposes only. Kurlon Enterprise Limited has been amalgamated into Sheela Foam Limited pursuant to the approved Composite Scheme of Arrangement. The report should not be interpreted as an offer or recommendation to buy or sell Sheela Foam shares. Investors should independently verify their entitlement, demat holdings, corporate-action records and the latest disclosures of Sheela Foam Limited.
For more such unlisted stocks visit https://unlistedcart.com/unlisted-shares/
