Stanley Lifestyles IPO gets strong response on second day. Here are 10 key things to know from RHP before investing

  • Stanley Lifestyles IPO includes funding of 161.10 crore, subscription status of 5.22 times on the second day, and plans to open new stores and invest in equipment.

Dhanya Nagasundaram
First Published24 Jun 2024, 03:28 PM IST
Stanley IPO has reserved 50% of the shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 35% for retail investors.
Stanley IPO has reserved 50% of the shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 35% for retail investors.(lovestanley.com)

Stanley Lifestyles Limited, a fully integrated luxury manufacturer, launched its initial public offering on Friday, June 21, and it will end on Tuesday, June 25. The price range for the Stanley Lifestyles IPO is 351 to 369 for each equity share, with a face value of 2. The business received around 161.10 crore in funding from major investors. There is a minimum bid requirement of 40 equity shares, and bids can be submitted for multiples of 40 equity shares thereafter. On the second day of bidding Stanley Lifestyles IPO subscription status is 5.22 as per BSE data.

Stanley Lifestyles, one of the few domestic super-premium and luxury consumer brands in India that runs at scale in terms of production and retail, is a super-premium and luxury furniture company, according to the RedSeer Report. Additionally, for the Fiscal 2023, they rank as the fourth-largest revenue-generating company in India's home furnishings market.

Also Read | Stanley Lifestyles IPO Day 2: GMP, subscription status to review. Apply or not?

The Stanley IPO has set aside 15% of its shares for non-institutional institutional investors (NII), 50% of its shares for qualified institutional buyers (QIB), and 35% of the offer for retail investors.

In the Stanley Lifestyles IPO, the promoters and shareholders are offering 9,133,454 equity shares for sale (OFS) in addition to a new 200 crore issuance.

Additional stores will be opened and new machinery and equipment purchased using the profits from the new issuance. With its subsidiaries ABS Seating Pvt Ltd, Sana Lifestyles Ltd, Stanley Retail Ltd, Shrasta Décor Pvt Ltd, and Staras Seating Pvt Ltd, the business intends to open 24 new stores in Delhi, Tamil Nadu, Telangana, and Maharashtra between 2025 and 2027.

Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

Stanley Lifestyles IPO Promoters

The company's promoters are Shubha Sunil and Sunil Suresh. As of RHP, the promoters of the firm together owned 34,751,080 equity shares, or 67.28% of the equity share capital that had been issued, subscribed for, and paid up.

In the OFS, promoter selling shareholder, Sunil Suresh and Shubha Sunil will offload up to 1,182,000 equity shares each. The other selling shareholders are 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).

Stanley Lifestyles IPO Promoters

Stanley Lifestyles Business

The business uses a network of "company owned and company operated" and "franchisee-owned and franchisee-operated" stores that spans all of India to create, manufacture, and market its products. This company, which can manufacture and sell its products through its own network of retail locations, is one of the top four fully integrated Indian super-premium and luxury furniture manufacturers, according to the RedSeer Report.

Also Read: Stanley Lifestyles IPO booked 1.44x on the first day of bidding, NIIs steal the show; Check GMP, subscription status

Stanley Lifestyles IPO Peers

It is hard to evaluate and compare the company's financial performance to that of other businesses in the same sector because it does not have any listed competitors in India or abroad.

Stanley Lifestyles Retail Presence

The company made use of its network of outlets for marketing and sales of its goods. The firm feels that for our clients, their stores are the initial step into exploring the world of luxury furniture. The company has steadily grown its network of stores over the years, and as of December 31, 2023, it operated 24 "franchisee-owned and franchisee-operated" (FOFO) stores in 21 cities across 11 States and Union Territories in India, as well as 38 "company owned and company operated" (COCO) stores in the major metropolises of Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad.

Stanley Lifestyles IPO Manufacturing Operations

The firm feels that what sets them apart from other Indian and international furniture companies is their in-house production activities combined with their selling methodology. They are able to have total control over all of their operations because to their integrated approach, which includes sourcing raw materials, creating goods, producing them, ensuring quality, marketing them, and finally selling them.

Also Read: Stanley Lifestyles IPO: Furniture maker garners 161.10 crore from anchor investors ahead of public issue

Stanley Lifestyles Subsidiaries

Stanley OEM Sofas Ltd., Stanley Retail Ltd., and ABS Seating Private Ltd. are the company's direct subsidiaries.

Sana Lifestyles Ltd., Scheek Home Interiors Ltd., Shrasta Decor Private Ltd., and Staras Seating Private Ltd. are the company's step-down subsidiaries.

Stanley Lifestyles Customers

The company's top 5 clients accounted for nearly all of its income from contract manufacturing and leather car interiors.

Stanley Lifestyles Customers

Stanley Lifestyles IPO - key risks

Some of the key risks are as follows;

  • The selling of couches and recliners is a major component of the company's revenue. Demand fluctuations and shifts in customer preferences for their sofa and recliner items might negatively impact their company's operations, financial situation, and business outcomes.
  • Any halt, reduction, or delay in the availability of essential raw materials, such wood and leather, needed to produce their goods might have a negative impact on their operations, financial situation, cash flows, and business.

Also Read: Stanley Lifestyles IPO: Here are 10 key risks from the RHP you should know before investing

Stanley Lifestyles Financials

In Stanley Lifestyles Limited's fiscal years ending March 31, 2023 and 2022, sales rose by 42.94% and profit after tax (PAT) increased by 50.64%.

Lock-in of equity shares allotted to anchor investors

The remaining equity shares allotted to anchor investors under the anchor investor portion will be locked-in for 30 days after the date of allotment, and 50% of the equity shares allotted to anchor investors under the anchor investor portion will be locked-in for 90 days.

Also Read: Stanley Lifestyles IPO sets price band at 351-369 apiece; check issue, key dates, more

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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First Published:24 Jun 2024, 03:28 PM IST
HomeMarketsStanley Lifestyles IPO gets strong response on second day. Here are 10 key things to know from RHP before investing

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