Stanley Lifestyles IPO Debuts With 34% Premium
During its subscription phase, Stanley Lifestyle IPO receives more than 200 times subscription from Qualified Institutions
The initial public offering of Bengaluru-based Stanley Lifestyles, a super-premium and luxury furniture brand made a stellar debut on the bourses.
The IPO listed at Rs 34 per cent premium at Rs 494 on the National Stock Exchange (NSE) against its issue price of Rs 369.
The Rs 537 crore IPO, during its subscription phase, Stanley Lifestyle IPO received more than 200 times subscription from Qualified Institutions, however retail subscription stood at 19.08 per cent. Overall, the issue was filled nearly 100 times.
The IPO consisted of fresh issues of up to Rs 200 crore and an offer-for-sale (OFS) worth Rs 337.02 crore or 9.13 million shares by promoter and investor selling shareholders.
Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets were the book running lead managers and KFin Technologies was the registrar to the offer.
Analysts Advice
“Stanley's optimistic future is underpinned by strategic initiatives and its ability to meet the growing demand for quality, stylish home furnishings. Investors who have been allotted shares are encouraged to consider holding their investment for the medium to long term,” said Akriti Mehrotra, Research Analyst, StoxBox.
IPO Objectives
Company intends to utilise the net proceeds of Rs 200 crore for the opening of new stores and the renovation of existing stores.
Additionally, the proceeds will also be used towards funding capital expenditure requirements for purchasing new machinery and equipment by the company and subsidiary along with general corporate purposes.
Besides, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
Stanley holds the fourth position in terms of revenue in the home furniture segment in India for Fiscal 2022.
The firm registered revenue of Rs 425 crore in FY23, compared to Rs 297 crore in FY22.
The firm’s profit after tax (PAT) increased to Rs 34.98 crore in FY23 compared to Rs 23.22 crore in FY22.
Overall, revenue and PAT increased by 43 per cent and 50.64 per cent respectively.
About Stanley Lifestyles
The company operates two manufacturing facilities located in Bengaluru, Karnataka. Its in-house manufacturing coupled with its retailing model differentiates it from its Indian and Foreign Peers.
As of 31 December 2023, it operated 38 company-owned and company-operated (COCO) stores, all located in major metro-cities such as Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad. Additionally, it also has 21 franchisee-owned and franchise-operated (FOFO) stores in 11 cities.
