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

Stanley Lifestyles, 1 of the fewer home super-premium and luxury user brands successful India that runs astatine standard successful presumption of accumulation and retail, is simply a super-premium and luxury furnishings company, according to the RedSeer Report. Additionally, for the Fiscal 2023, they fertile arsenic the fourth-largest revenue-generating institution successful India's location furnishings market.

The Stanley IPO has acceptable speech 15% of its shares for non-institutional organization investors (NII), 50% of its shares for qualified organization buyers (QIB), and 35% of the connection for retail investors.

In the Stanley Lifestyles IPO, the promoters and shareholders are offering 9,133,454 equity shares for merchantability (OFS) successful summation to a caller ₹200 crore issuance.

Additional stores volition beryllium opened and caller machinery and instrumentality purchased utilizing the profits from the caller issuance. With its subsidiaries ABS Seating Pvt Ltd, Sana Lifestyles Ltd, Stanley Retail Ltd, Shrasta Décor Pvt Ltd, and Staras Seating Pvt Ltd, the concern intends to unfastened 24 caller stores successful Delhi, Tamil Nadu, Telangana, and Maharashtra betwixt 2025 and 2027.

Here are 10 cardinal things from the Red Herring Prospectus (RHP) that investors mightiness privation to cognize earlier 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 steadfast unneurotic owned 34,751,080 equity shares, oregon 67.28% of the equity stock superior that had been issued, subscribed for, and paid up.

In the OFS, promoter selling shareholder, Sunil Suresh and Shubha Sunil volition offload up to 1,182,000 equity shares each. The different 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 Business

The concern uses a web of "company owned and institution operated" and "franchisee-owned and franchisee-operated" stores that spans each of India to create, manufacture, and marketplace its products. This company, which tin manufacture and merchantability its products done its ain web of retail locations, is 1 of the apical 4 afloat integrated Indian super-premium and luxury furnishings manufacturers, according to the RedSeer Report.

Also Read: Stanley Lifestyles IPO booked 1.44x connected the archetypal time of bidding, NIIs bargain the show; Check GMP, subscription status

Stanley Lifestyles IPO Peers

It is hard to measure and comparison the company's fiscal show to that of different businesses successful the aforesaid assemblage due to the fact that it does not person immoderate listed competitors successful India oregon abroad.

Stanley Lifestyles Retail Presence

The institution made usage of its web of outlets for selling and income of its goods. The steadfast feels that for our clients, their stores are the archetypal measurement into exploring the satellite of luxury furniture. The institution has steadily grown its web of stores implicit the years, and arsenic of December 31, 2023, it operated 24 "franchisee-owned and franchisee-operated" (FOFO) stores successful 21 cities crossed 11 States and Union Territories successful India, arsenic good arsenic 38 "company owned and institution operated" (COCO) stores successful the large metropolises of Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad.

Stanley Lifestyles IPO Manufacturing Operations

The steadfast feels that what sets them isolated from different Indian and planetary furnishings companies is their in-house accumulation activities combined with their selling methodology. They are capable to person full power implicit each of their operations due to the fact that to their integrated approach, which includes sourcing earthy materials, creating goods, producing them, ensuring quality, selling them, and yet selling them.

Also Read: Stanley Lifestyles IPO: Furniture shaper garners ₹161.10 crore from anchor investors up of nationalist issue

Stanley Lifestyles Subsidiaries

Stanley OEM Sofas Ltd., Stanley Retail Ltd., and ABS Seating Private Ltd. are the company's nonstop 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 apical 5 clients accounted for astir each of its income from declaration manufacturing and leather car interiors.

Stanley Lifestyles IPO - cardinal risks

Some of the cardinal risks are arsenic follows;

• The selling of couches and recliners is simply a large constituent of the company's revenue. Demand fluctuations and shifts successful lawsuit preferences for their sofa and recliner items mightiness negatively interaction their company's operations, fiscal situation, and concern outcomes.
• Any halt, reduction, oregon hold successful the availability of indispensable earthy materials, specified wood and leather, needed to nutrient their goods mightiness person a antagonistic interaction connected their operations, fiscal situation, currency flows, and business.

Also Read: Stanley Lifestyles IPO: Here are 10 cardinal risks from the RHP you should cognize earlier investing

Stanley Lifestyles Financials

In Stanley Lifestyles Limited's fiscal years ending March 31, 2023 and 2022, income roseate by 42.94% and nett aft taxation (PAT) accrued by 50.64%.

Lock-in of equity shares allotted to anchor investors

The remaining equity shares allotted to anchor investors nether the anchor capitalist information volition beryllium locked-in for 30 days aft the day of allotment, and 50% of the equity shares allotted to anchor investors nether the anchor capitalist information volition beryllium locked-in for 90 days.

Also Read: Stanley Lifestyles IPO sets terms set astatine ₹351-369 apiece; cheque issue, cardinal dates, more

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 24 Jun 2024, 03:28 PM IST