Stanley Lifestyles Gets SEBI Nod To Raise Funds Worth Rs 200 Cr Via IPO

The Securities and Exchange Board of India (SEBI), which oversees the capital markets, has given Bengaluru-based Stanley Lifestyles Ltd its final go-ahead to raise funds through an initial public offering (IPO). On September 4, 2023, the company filed the DRHP with SEBI in preparation for its IPO. The initial public offering (IPO), which has a face value of Rs 2, consists of an offer for sale (OFS) of up to 9.13 million equity shares by the promoter and investor selling shareholders, as well as a fresh issue of up to Rs 200 crore.

According to the DRHP, Oman India Joint Investment Fund II would sell 55.44 lakh shares, Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati will sell 12.25 lakh shares, while promoters Sunil Suresh and his wife Shubha Sunil will offload 11.82 lakh shares apiece via OFS. Currently, Oman India Joint Investment Fund II, held by OIJIF-MC, holds a 26.86 per cent shareholding in the firm, while Suresh and his spouse hold 67.35 per cent stake.

As per the DRHP, the proceeds from the fresh issue amounting to Rs 90.13 crore will be used for expenditure for opening the new stores, Rs 39.99 crore expenditure for opening the anchor stores, Rs 10.04 crore expenditure for renovation of the existing stores, and Rs 8.18 crore for funding the capital expenditure requirements for the purchase of new machinery and equipment by the company and its material subsidiary, SOSL, and general corporate purposes.

The book-running lead managers are Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and SBI Capital Markets Limited, while the offer's registrar is KFin Technologies Limited. The equity shares of Stanley Lifestyles are proposed to be listed on the BSE and NSE.

As one of the first Indian firms to enter the super-premium and luxury furniture categories, The Home Solutions Co. is notable for having the fourth-highest revenue in India's home furniture market for the fiscal year 2022. It is also one of the few domestically developed high-end and luxury consumer brands in India with a significant presence in both manufacturing and retail operations.

It is one of the few Indian companies operating in multiple price categories, including super-premium, luxury, and ultra-luxury, through its multiple brands. The Stanley brand has developed over time from a sales-focused business strategy to a design-led one, becoming a full-service supplier of home solutions.

Among the many home solution products it offers are sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows. It is the only super-premium and luxury Indian brand. In an effort to appeal to a younger market, the company has expanded its product line and recently opened a new format store called "Stanley Personal" that offers handcrafted shoes, bags and other lifestyle products.