The Stanley Lifestyles Initial Public Offering (IPO) has attracted significant attention since its opening for subscription on June 21, eliciting enthusiastic responses from retail and non-institutional bidders. With a book-building issue of ₹537.02 crore, which includes a fresh issue and an offer-for-sale, the IPO has also garnered substantial interest from anchor investors, securing over ₹161.10 crore.
Stanley Lifestyles, a luxury furniture brand based in Bengaluru, is a prominent player in the home furniture segment in India and ranks as the fourth-largest revenue-generating company in FY23. It distinguishes itself as one of the few Indian companies operating across various price points, offering products in the super-premium to ultra-luxury segments.
Key Points to Note About Stanley Lifestyles and its IPO:
1. IPO Details
The IPO entails a fresh issue of ₹200 crore and an offer-for-sale of 91,33,454 shares, amounting to ₹337.02 crore. The price band is established at ₹351-369 per share, and the subscription period extends from June 21 to June 25. The share allotment is anticipated to be finalised on June 26, potentially leading to a listing on the BSE and the NSE on June 28.
2. Subscription Status
On Day 1, the Stanley IPO garnered a cumulative subscription of 1.44 times, with the retail and non-institutional investors (NIIs) segments fully subscribed. However, the QIB portion experienced a more restrained demand.
3. Shareholding Pattern
Following the issue, the promoter and promoter group’s shareholding will decrease to 56.81%, while the public and employees’ stake will increase to 43.19%.
4. Objectives of the Fresh Issue
The net proceeds from the IPO will be utilised to open new stores and revamp existing ones under various formats, including “Stanley Level Next,” “Stanley Boutique,” and “Sofas & More by Stanley.”
5. Financial Performance
Stanley Lifestyles has demonstrated a consistent increase in revenue, signalling positive growth and potential expansion. Moreover, its profits have shown significant improvement over the years.
6. Competitive Strength
As the largest and fastest-growing luxury and super-premium furniture brand in India, Stanley Lifestyles possesses an extensive retail presence and a diverse product offering.
7. Industry Overview
The furniture industry in India is witnessing robust growth, driven by factors such as urbanisation, rising incomes, and an expanding real estate market. The luxury furniture and home goods market is projected to triple in size by FY27.
8. Key Management
The company’s management team comprises individuals with substantial experience and expertise in the furniture industry, augmenting its credibility.
9. Key Risks
Stanley Lifestyles faces certain risks related to brand ownership, product demand, industry benchmarking, and geographical concentration of stores.
10. Stanley Lifestyles GMP
The latest grey market premium (GMP) for Stanley Lifestyles IPO stands at ₹165, projecting a premium of 44.72% based on the upper price band of ₹369.
In conclusion, the Stanley Lifestyles IPO has engendered significant interest among investors, underpinned by the company’s strong market position and growth prospects. As with any investment opportunity, it is crucial for investors to conduct thorough due diligence and seek professional advice before making informed decisions.