Stanley IPO Debuts on D-Street: Check GMP, Review, and Key Details – Should You Apply or Not?

Mumbai: The Stanley IPO, which opens today, has set aside 50% of its shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 35% for retail investors.

Stanley Lifestyles is a leading Indian brand known for its high-end and luxury furniture. According to the RedSeer Report, it ranks as the fourth largest in India’s home furnishings market for 2023. Being a unique player in its field with no exact listed peers in India or abroad, comparing its financial performance is challenging.

Stanley IPO Overview

• Offer Details: The IPO includes a fresh issue worth ₹200 crore and an offer-for-sale (OFS) of 9,133,454 equity shares by the promoters and shareholders.
• IPO Price Band: ₹369 per share.
• IPO Lot Size: 73 shares.
• Use of Proceeds: The funds from the IPO will be used for opening new stores, buying machinery, and other equipment.

Stanley IPO Subscription Status

The IPO has already seen significant interest and is heavily oversubscribed.

Stanley IPO Grey Market Premium (GMP) Today

As of today, the GMP for Stanley IPO is ₹162. This means the shares are trading at a ₹162 premium in the grey market. Based on this, the expected listing price is ₹531 per share, which is 43.9% higher than the IPO price of ₹369.

Stanley IPO Review

Anand Rathi Research

• Assessment: Stanley is the fourth largest revenue player in India’s home furnishings sector for FY23. Post-IPO, the firm is priced at a P/E of 60x on FY23 earnings.
• Recommendation: “Subscribe for long term” due to growth potential, brand recall, and scalability.

Indsec Securities

• Assessment: At ₹369 per share, the IPO is valued at 79.8x on FY24 annualised earnings. Stanley’s revenues have grown significantly from FY21-23 due to increased retail sales.
• Recommendation: “Subscribe” due to strong growth prospects driven by high real estate demand, new store openings, and cost rationalisation.

About Stanley Lifestyles

Stanley Lifestyles stands out in the luxury and super-premium home furnishings market. The company’s strategy includes focusing on high-margin products, expanding store networks, and leveraging its market expertise to maintain a competitive edge.

IPO Details and Plans

• Promoter Selling Shareholders: Sunil Suresh and Shubha Sunil will each sell up to 1,182,000 shares. Other shareholders include Oman India Joint Investment Fund II, Kiran Bhanu Vuppalapat, and Sridevi Venkata Vuppalapati.
• Expansion Plans: The company plans to open 24 new stores in key locations like Delhi, Tamil Nadu, Telangana, and Maharashtra by 2027.

Book-running Lead Managers: Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets.

Registrar: Kfin Technologies.

Should You Apply?

Given the strong market interest, significant grey market premium, and positive reviews from brokerages, investors might consider applying to the Stanley IPO for potential gains and long-term growth prospects.