June 21, 2024
New Delhi, India
IPO Watch
Stanley Lifestyles IPO opens for subscriptions today (Friday, June 21), marking the third mainboard IPO debuting on D-Street this week. Here are the key details:
IPO Details
- Price Band: ₹351-₹369 per equity share
- Face Value: ₹2 per equity share
- Anchor Investors: Garnered ₹161.10 crore
- Subscription Period: Ends on Tuesday, June 25
- Minimum Bid: 40 equity shares and multiples thereof
Allocation
- Qualified Institutional Buyers (QIB): 50% reserved
- Non-Institutional Investors (NII): 15% reserved
- Retail Investors: 35% reserved
Company Overview
Stanley Lifestyles is an Indian super-premium and luxury furniture brand, noted for its large-scale operations in production and retail. According to the RedSeer Report, it is the fourth largest player in India’s home furnishings sector for fiscal year 2023. The company lacks listed counterparts in India or abroad, making financial comparisons challenging.
Financial Performance and Valuation
- Revenue Rank: Fourth largest in India’s home furnishings category in FY23
- Valuation: Richly priced at a P/E of 60x post-equity share issuance on an FY23 earnings basis
IPO Components
- Fresh Issue: ₹200 crore
- Offer-for-Sale (OFS): 9,133,454 equity shares by promoters and shareholders
Promoter and Shareholder Offload in OFS
- Sunil Suresh and Shubha Sunil: Up to 1,182,000 equity shares each
- Oman India Joint Investment Fund II: 5,544,454 equity shares
- Kiran Bhanu Vuppalapat: 1,000,000 equity shares
- Sridevi Venkata Vuppalapati: 225,000 equity shares
Utilization of Proceeds
The proceeds from the fresh issue will be used to:
- Open more stores
- Buy new machinery and equipment
Grey Market Premium (GMP)
- GMP Today: +₹162
- Expected Listing Price: ₹531 apiece (43.9% higher than the IPO price of ₹369)
The GMP reflects investors’ readiness to pay more than the issue price, indicating strong demand and potential for significant listing gains.
Conclusion
The Stanley Lifestyles IPO offers an opportunity to invest in a leading player in the luxury furniture market with robust growth plans. Investors should weigh the high valuation against the company’s market position and expansion strategy before making investment decisions.
Disclaimer:
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