Stanley Lifestyles, a luxury furniture brand from Bengaluru, is launching a new IPO (Initial Public Offering) worth ₹537.02 crore. The IPO includes both fresh shares and shares being sold by existing shareholders.
IPO Overview
The IPO is a “book-built” issue, meaning the price is decided based on investor demand. It includes a fresh issue of ₹200 crore and an offer-for-sale (OFS) of ₹337.02 crore by promoters and existing investors. Major sellers include:
- Sunil Suresh and Shubha Sunil, selling 11.82 lakh shares each.
- Oman India Joint Investment Fund II, selling 55,44,454 shares.
- Kiran Bhanu Vuppalapat, selling 10 lakh shares.
- Sridevi Venkata Vuppalapati, selling 2.25 lakh shares.
Price Band and Timings:
- Price: ₹351-369 per share
- Opens: June 21
- Closes: June 25
- Allocation Finalisation: June 26
- Listing Date: June 28 on BSE and NSE
Subscription Status
On Day 1, the IPO was subscribed 1.44 times:
- Retail Segment: 1.81 times (bids for 93,81,920 shares)
- Non-Institutional Investors (NIIs): 2.01 times (bids for 44,81,760 shares)
- Qualified Institutional Buyers (QIBs): 0.30 times (bids for 8,40,840 shares)
Shareholding Changes
Post-IPO, promoters’ shareholding will drop from 67.36% to 56.81%. The public and employees’ stake will rise from 32.64% to 43.19%.
Use of Funds
Proceeds will be used for:
- Opening new stores under “Stanley Level Next,” “Stanley Boutique,” and “Sofas & More by Stanley.”
- Renovating existing stores.
- Launching new anchor stores.
Financial Snapshot
- Revenue Growth:
- FY21: ₹195.78 crore
- FY22: ₹292.20 crore
- FY23: ₹419 crore
- FY24 (first nine months): ₹313.31 crore
- Profit:
- FY21: ₹1.03 crore
- FY22: ₹21.35 crore
- FY23: ₹32.9 crore
- FY24 (first nine months): ₹19.8 crore
Competitive Edge
Stanley Lifestyles is the largest and fastest-growing luxury and super-premium furniture brand in India, with the widest retail network. The company operates across ultra-luxury, luxury, and super-premium segments, offering extensive brand visibility and catering to various markets.
Industry Landscape
The furniture industry involves many stakeholders including manufacturers, designers, and retailers. According to HDFC Securities, there are over 45,000 furniture manufacturers in India. The luxury furniture market is expected to triple by FY27, reaching $4.8 billion, driven by urbanisation and rising incomes.
Management Team
- Sunil Suresh: Managing Director since 2007, previously associated with Stanley Seating.
- Shubha Sunil: Full-time Director since 2007, holds an INSEAD leadership certificate. Both Sunil and Shubha are promoters and married to each other.
Potential Risks
- Brand Name: The “Stanley” brand is not owned by the company but by promoter Sunil Suresh.
- Product Dependency: The company’s success largely depends on sofas and recliners. A change in consumer preferences could impact business.
- Regional Dependence: Most stores are in southern India, making the company vulnerable to regional disruptions.
Grey Market Premium (GMP)
Stanley Lifestyles’ IPO has a GMP of ₹165. Based on the upper price band of ₹369, this indicates an estimated listing price of ₹534, a premium of 44.72%.
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