Luxury Sofa Maker Stanley Lifestyles Receives SEBI Approval for IPO

Luxury Sofa Maker Stanley Lifestyles Receives SEBI Approval for IPO

Stanley Lifestyles, a Bengaluru-based luxury sofa and home decor company, has been granted official approval from the Securities and Exchange Board of India (SEBI) to proceed with their plans for an initial public offering (IPO). This significant development follows the company’s filing of initial papers in September of this year, with the goal of raising a substantial ₹200 crore through their IPO.

The IPO, with a face value of ₹2, will comprise a fresh issue of up to ₹200 crore and an offer for sale (OFS) of up to 9.13 million equity shares by the promoter and investor selling shareholders. As stated in the Draft Red Herring Prospectus (DRHP), the funds raised from the fresh issue, amounting to approximately ₹90.13 crore, will be allocated for various purposes such as opening new stores, renovating existing stores, and funding capital expenditure requirements.

The IPO will be managed by prominent book-running lead managers including Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and SBI Capital Markets Limited, with KFin Technologies Limited serving as the registrar of the offer. Additionally, the equity shares are set to be listed on both the BSE and NSE.

Founders Shubha Sunil and Sunil Suresh intend to sell up to 1.18 million shares in the OFS, while Oman India Joint Investment Fund II will offer up to 5.54 million shares. Other shareholders, Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati, will also be divesting a portion of their shares.

The ownership distribution in Stanley Lifestyles reveals that each of the two promoters holds a 33.68% stake, while the Oman India Joint Investment Fund possesses a 26.86% share. Kiran Bhanu and Sridevi Venkata maintain ownership stakes of 3.77% and 0.61%, respectively.

It is worth noting that in 2018, the Oman India Joint Investment Fund acquired a 26% stake in Stanley Lifestyles. Subsequently, in 2019, the company secured an additional infusion of ₹100 crore from the same fund.

This significant development for Stanley Lifestyles sets the stage for exciting advancements in the luxury home decor industry. Investors and consumers alike will be closely monitoring the company as they navigate the processes of their IPO and subsequently enter the public market.