Duroflex Limited Proposes Initial Public Offering

Duroflex Limited, a leading Indian provider of sleep and comfort solutions, has announced its intention to proceed with an Initial Public Offering (IPO). The company, known for manufacturing a wide array of products such as foam, mattresses, sofas, recliners, beds, and pillows, operates through a diverse omni-channel distribution network across India. The proposed IPO consists of two main components: a fresh issue of new equity shares aimed at raising approximately ₹183.6 crore for the company's growth, and an offer for sale (OFS) where existing shareholders, including the Promoters and Lighthouse India Fund III Limited along with its employee trust, will divest up to 22,564,569 equity shares.

Legal advisory for Duroflex is being provided by Trilegal, with a transaction team led by Partner Vijay Parthasarathi. Khaitan & Co is advising the book running lead managers, JM Financial Limited and Motilal Oswal Investment Advisors Limited, on the IPO.

Impact This IPO is expected to provide Duroflex Limited with significant capital for expansion, enhance its market presence, and offer investors a new opportunity to invest in the growing sleep solutions sector in India. The successful listing could also stimulate investor interest in the broader consumer durables market. Rating: 7/10

Definitions: Initial Public Offering (IPO): The process by which a private company first sells shares of its stock to the public, making it a publicly traded entity. Fresh Issue: The issuance of new shares by a company to raise capital directly from investors. Offer for Sale (OFS): A transaction where existing shareholders sell a portion of their shares to new investors; the company itself does not receive funds from an OFS. Promoters: The founders and initial owners of a company who typically retain a significant stake and control. Book Running Lead Managers (BRLMs): Investment banks responsible for managing the IPO process, including pricing, marketing, and distribution of shares.