Stanley Lifestyles Limited, a high-end luxury furniture maker, has announced the price range for its Initial Public Offering (IPO). Shares will be available for ₹351 to ₹369 each, with a face value of ₹2 per share. The IPO will open for subscription on Friday, June 21, and close on Tuesday, June 25. On June 20, shares will be allocated to anchor investors.
Pricing and Bidding Details
The minimum bid is for 40 shares, and bids must be in multiples of 40 shares. The floor price is 175.50 times the face value, and the cap price is 184.50 times the face value. At the upper price range, the price-to-earnings (P/E) ratio is 57.93, compared to the Nifty 50’s P/E ratio of 22.18 as of June 12, 2024.
Company Overview
Stanley Lifestyles is a leading luxury furniture brand in India, known for its high-quality and scale in both production and retail. According to a RedSeer report, it is one of India’s few large-scale luxury consumer brands and ranked fourth in revenue in the home furnishings category for FY 2023.
Share Allocation
The IPO will reserve up to 50% of shares for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. The basis of share allotment will be finalised on June 26, with refunds initiated on June 27. Shares will be credited to demat accounts and listed on the BSE and NSE on June 28.
Stanley Lifestyles has seen significant growth, with a 42.94% increase in revenue and a 50.64% rise in profit after tax for the fiscal year ending March 31, 2023.
IPO Structure and Fund Use
The IPO includes a fresh issue of ₹200 crore and an Offer for Sale (OFS) of 9,133,454 shares by promoters and shareholders. Promoters Sunil Suresh and Shubha Sunil will sell up to 1,182,000 shares each. Other sellers include Oman India Joint Investment Fund II (5,544,454 shares), Kiran Bhanu Vuppalapat (1,000,000 shares), and Sridevi Venkata Vuppalapati (225,000 shares).
The funds from the IPO will be used to open new stores and purchase machinery. By 2027, the company plans to open 24 new stores in Delhi, Tamil Nadu, Telangana, and Maharashtra through its subsidiaries: ABS Seating Pvt Ltd, Sana Lifestyles Ltd, Stanley Retail Ltd, Shrasta Décor Pvt Ltd, and Staras Seating Pvt Ltd.
Lead Managers
Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and SBI Capital Markets Limited are the lead managers for the IPO. KFin Technologies Limited will act as the registrar.
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