Stanley Lifestyles IPO Opens On 21 June; Attempts To Raise Rs 537 Cr
Retail investors can bid for the maximum of 13 lots, while for the 1 lot of 40 shares, the minimum investment required is Rs 14,760
Bengaluru-based Stanley Lifestyles, a super-premium and luxury furniture brand, opened for its maiden Rs 537 crore initial public offer (IPO) on 21 June.
The IPO consists 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.
Stanley Lifestyles IPO opened on 21 June and scheduled to close on 25 June followed by allotment on 26 June. Subsequently, the IPO will list on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 28 June.
Retail investors can bid for the maximum of 13 lots, while for the 1 lot of 40 shares, the minimum investment required is Rs 14,760.
Axis Capital Limited, ICICI Securities, JM Financial, and SBI Capital Markets are the book running lead managers and KFin Technologies is the registrar to the offer.
Analysts Advice
“Stanley Lifestyles boasts the largest retail presence in India's luxury furniture sector, with significant revenue growth driven by a focus on quality, innovation, and customer satisfaction. With a strong retail strategy, robust product development, and consistent financial performance, Stanley presents an attractive investment opportunity despite its premium valuation. Therefore, we recommend a "Subscribe" rating for this IPO,” said Akriti Mehrotra, Research Analyst, StoxBox.
“Stanley Lifestyles is among the top players of high-end, luxurious furniture. After a setback in FY21, it marked steady growth in its top and bottom lines between FY22 and FY23. Based on FY24 annualised earnings, The issue appears aggressively priced, based on the FY24 annualized earnings. We expect a listing at around Rs 530 to 550 per share, resulting in a listing gain of around 45 per cent,” said Amit Goel, Co-Founder and Chief Global Strategist, Pace 360.
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’s 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.
