Stanley Lifestyles IPO: Price Band Set Between Rs 351 To Rs 369; Check Subscription & Listing Dates Here

In the luxury furniture market segment, Stanley Lifestyles Limited, a fully integrated luxury furniture manufacturer, has announced its initial public offering (IPO) with a price band set between Rs 351 and Rs 369 per equity share. This offering will see the face value of each share at Rs 2. The IPO subscription period is scheduled to open on Friday, June 21, and will close on Tuesday, June 25. Allocations to anchor investors will be conducted a day earlier on Thursday, June 20.

The floor price for the IPO is set at 175.50 times the face value, while the cap price is 184.50 times the face value. Investors can place bids for a minimum of 40 equity shares and in multiples of 40 shares thereafter. At the upper end of the price band, the price to earnings (P/E) ratio based on basic and diluted earnings per share (EPS) for fiscal 2023 stands at a high 57.93, significantly above the Nifty 50 index's P/E ratio of 22.18 as of June 12, 2024.

According to the RedSeer Report, Stanley Lifestyles is recognized as a super-premium and luxury furniture brand in India, one of the few home-grown brands in this sector operating at scale in both production and retail. In terms of revenue, Stanley Lifestyles ranked as the fourth largest player in India's home furnishings category for fiscal 2023. The company's revenue and profit after tax (PAT) saw impressive growth, climbing by 42.94% and 50.64% respectively between the fiscal years ended March 31, 2022, and March 31, 2023.

The IPO consists of a fresh issue of Rs 200 crore and an offer-for-sale (OFS) of 9,133,454 equity shares by promoters and shareholders. Promoters Sunil Suresh and Shubha Sunil will each offload up to 1,182,000 equity shares. Other shareholders participating in the OFS include Oman India Joint Investment Fund II (5,544,454 equity shares), Kiran Bhanu Vuppalapat (1,000,000 equity shares), and Sridevi Venkata Vuppalapati (225,000 equity shares).

Of the shares on offer, not more than 50% are reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and not less than 35% for retail investors. The basis of the allotment of shares is expected to be finalized by Wednesday, June 26, with refunds initiated on Thursday, June 27, and shares credited to demat accounts on the same day. The shares are likely to be listed on the BSE and NSE on Friday, June 28.

Proceeds from the fresh issue will primarily fund the opening of new stores and the acquisition of machinery and equipment. Between 2025 and 2027, Stanley Lifestyles plans to launch 24 new stores across Delhi, Tamil Nadu, Telangana, and Maharashtra. This expansion will be executed through its subsidiaries: ABS Seating Pvt Ltd, Sana Lifestyles Ltd, Stanley Retail Ltd, Shrasta Décor Pvt Ltd, and Staras Seating Pvt Ltd.

Stanley Lifestyles holds a unique position with no direct listed peers in India or overseas, making it challenging to directly compare its financial performance within the industry. However, the company's robust growth figures and strong market presence in the luxury segment reflect its potential.

The book-running lead managers for the IPO are Axis Capital Limited, ICICI Securities Limited, Jm Financial Limited, and SBI Capital Markets Limited. Kfin Technologies Limited is serving as the registrar for the IPO. This team of financial experts is expected to steer the IPO smoothly, ensuring robust investor engagement and compliance with regulatory standards.

Stanley Lifestyles Limited's IPO arrives at a time when the luxury furniture market in India is experiencing growth. The company's strategic expansion plans, coupled with its impressive financial performance, position it as an attractive investment opportunity. As the subscription date approaches, investors are watching how Stanley Lifestyles will shape its journey in the public markets.