Sheela Foam Limited (NSEI:SFL) is in advanced talks to acquire Kieraya Furnishing Solutions Private Limited (Furlenco), said three people with knowledge of the development, as the maker of the Sleepwell brand of mattresses looks to expand into newer business categories. "The enterprise value (equity and debt) of Furlenco is being pegged at INR 5,000 million," one of the people said. Furlenco, which counts Lightbox Ventures and Zinnia Global Fund among its backers, has been scouting for financial investors for a while, the person added.

According to the second person, the discussions are at an advanced stage, and an announcement is likely soon "if all conditions are met". The person didn't elaborate on the conditions. "For Sheela, the furniture rental category opens up a lot of new business possibilities," the third person said.

The company has been looking at inorganic growth opportunities in its core as well as non-core categories, the person added. All three spoke on condition of anonymity. In an emailed response, a spokesperson for Sheela Foam said, "We constantly keep evaluating businesses, and this is one such case.

Nothing concrete." Calls and messages to Ajith Mohan Karimpana, founder and chief executive of Furlenco, went unanswered.