Stanley Lifestyles Limited, a renowned super-premium and luxury furniture brand in India, has opened its Initial Public Offering (IPO) for subscription today (June 21, 2024), garnering strong investor interest on its opening day. The IPO will remain open until June 25, 2024.
The company aims to raise up to ₹200 crore through a fresh issue of equity shares and an offer for sale of up to 91,33,454 equity shares.
The price band for the IPO is set between ₹351 and ₹369 per equity share with a face value of ₹2 each.
Investors can bid for a minimum of 40 equity shares and in multiples thereof.
The equity shares will be listed on both BSE and NSE, with BSE as the designated stock exchange for the purpose of offer.
Stanley Lifestyles Limited, headquartered in Bengaluru, Karnataka, operates in the luxury furniture segment, offering a range of products including sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows, amongst others.
The company’s registered and corporate office is located in Veerasandra Village, Attibele Hobli, Anekal Taluk, Bengaluru.
IPO Offer Details
The IPO comprises a fresh issue worth ₹200 crore and an offer for sale of up to 91,33,454 equity shares by existing shareholders.
Promoters Sunil Suresh and Shubha Sunil will each sell up to 11.82 lakh shares.
Other selling shareholders include Oman India Joint Investment Fund II, offering up to 55.44 lakh shares, and individual shareholders Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati, offering up to 10 lakh and 2.25 lakh shares respectively.
IPO Objectives
The proceeds from the fresh issue will be utilized for various purposes including:
- Opening of New Stores (₹90.13 crore),
- Anchor Stores (₹39.99 crore),
- Renovation of Existing Stores (₹10.04 crore)
- Funding the capital expenditure requirements for purchase of new machinery and equipment (₹6.66 crore).
- A portion will also be allocated for general corporate purposes.
Financial Highlights
Financial highlights for Stanley Lifestyles include a revenue from operations of ₹313.31 crore and a net profit of ₹18.70 crore for the nine-month period ending December 31, 2023.
The company reported a net worth of ₹237.21 crore and basic earnings per share of ₹3.83 for the same period.
Consolidated Bid Details as of 5:00 PM:
- Qualified Institutional Buyers (QIBs):
- Shares Offered/Reserved: 28,25,777
- Shares Bid For: 8,40,840
- Subscription: 0.30 times
- Non-Institutional Investors (NIIs):
- Shares Offered/Reserved: 22,24,719
- Shares Bid For: 44,75,480
- Subscription: 2.01 times
- Bid Amount > ₹10 Lakhs:
- Shares Offered: 14,83,146
- Shares Bid For: 23,93,400
- Subscription: 1.61 times
- Bid Amount ₹2 Lakhs to ₹10 Lakhs:
- Shares Offered: 7,41,573
- Shares Bid For: 20,82,080
- Subscription: 2.81 times
- Retail Individual Investors (RIIs):
- Shares Offered/Reserved: 51,91,011
- Shares Bid For: 93,53,240
- Subscription: 1.80 times
Overall, a total of 1,46,69,560 shares have been bid for, against the 1,02,41,507 shares offered, reflecting a subscription rate of 1.43 times.
Investor Breakdown:
- QIBs: Minimal participation with 8,40,840 shares bid, predominantly by domestic financial institutions.
- NIIs: Overwhelming response, especially in the ₹2 Lakhs to ₹10 Lakhs bid category, which saw a subscription rate of 2.81 times.
- RIIs: Significant interest with a subscription rate of 1.80 times, led by strong cut-off bids totaling 93,53,240 shares.
Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and SBI Capital Markets Limited are the book-running lead managers for the IPO. KFin Technologies Limited will serve as the registrar.
Potential investors can find more detailed information in the Red Herring Prospectus available on the company’s website and through the lead managers.
