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The initial public offering (IPO) of Stanley Lifestyles opened for subscription on June 21 and received a healthy response from retail and non-institutional bidders. The book-building issue is worth ₹537.02 crore, with a price band of ₹351-369 per share. The company plans to use the net proceeds for store expansion and renovation.
Stanley Lifestyles is a well-known luxury furniture brand in India, involved in both manufacturing and retail operations. It has been a key player in the home furniture segment, ranking fourth in revenue generation in FY23.
The IPO details include a fresh issue of ₹200 crore and an offer-for-sale (OFS) of 91,33,454 shares, totaling ₹337.02 crore. The IPO opened on June 21 and will close on June 25, with 50% reserved for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.
The subscription status of the IPO on Day 1 saw a cumulative subscription of 1.44 times, with the retail and non-institutional segments fully subscribed. The QIB portion saw decent demand, with the NIIs segment having a subscription of 2.01 times and the retail segment at 1.81 times.
Post-issue, the shareholding pattern will see the promoter and group’s holding decrease to 56.81%, while public and employee stake will increase to 43.19%. The company’s financials have shown a consistent growth trend, with revenues increasing from ₹195.78 crore in FY21 to ₹419 crore in 2023.
Additionally, Stanley Lifestyles is known for its competitive strength, being the largest and fastest-growing luxury furniture brand in India. With an extensive retail network and sector expertise, the company aims to capture the luxury furniture market’s growth potential.
The industry overview highlights the booming furniture market in India, driven by urbanization and rising incomes. The luxury furniture segment is expected to triple in size by FY27, reaching $4.8 billion.
The key management team at Stanley Lifestyles, led by Sunil Suresh and Shubha Sunil, brings strong industry experience and leadership. However, the company faces key risks such as dependence on sofa and recliner sales and regional concentration in southern India.
In terms of market performance, Stanley Lifestyles IPO’s GMP stands at ₹165, indicating strong investor interest. The estimated listing price at a 44.72% premium suggests positive market sentiment towards the IPO.
Overall, Stanley Lifestyles IPO presents a promising opportunity for investors looking to participate in India’s luxury furniture market growth.
