Stanley Lifestyles IPO: GMP, subscription status to key risks - 10 key things to know

The mainboard IPO of a luxury furnishings marque institution is simply a book-building contented of ₹537.02 crore, comprising a caller contented and an offer-for-sale.

The Bengaluru-based furnishings shaper raised implicit ₹161.10 crore from anchor investors connected Thursday up of its archetypal nationalist offering.

Stanley Lifestyles is simply a super-premium and luxury furnishings marque successful India progressive successful manufacturing and retail operations.

Experts constituent retired that successful FY23, it was the fourth-largest revenue-generating subordinate successful the location furnishings conception successful India.

Stanley Lifestyles is among the archetypal fewer Indian companies successful the super-premium and luxury furnishings conception and 1 of the fewer Indian companies contiguous crossed assorted terms points, specified arsenic super-premium, luxury and ultra-luxury segments, done its assorted brands.

Here are 10 cardinal points astir Stanley Lifestyles and its IPO:

1. Stanley IPO details

A book-built contented of ₹537.02 crores, Stanley Lifestyles IPO combines a caller contented and an offer-for-sale (OFS) by its promoters and shareholders. It comprises a caller contented of ₹200 crore and an OFS of 91,33,454 shares, aggregating to ₹337.02 crore.

The promoter-selling shareholders nether the OFS are Sunil Suresh and Shubha Sunil, who volition offload up to 11.82 lakh shares each. The investor-selling shareholders are Oman India Joint Investment Fund II, which volition merchantability 5,544,454 shares successful the OFS, Kiran Bhanu Vuppalapat, who volition merchantability 10 lakh equity shares, and Sridevi Venkata Vuppalapati, who volition merchantability 2.25 lakh shares.

Axis Capital Limited, ICICI Securities Limited, JM Financial, and SBI Capital Markets are the book-running pb managers of Stanley IPO. KFin Technologies Limited is the issue's registrar.

With a terms set acceptable astatine ₹351-369 per share, the IPO opened for subscription connected Friday, June 21 and volition adjacent connected Tuesday, June 25.

Up to 50 per cent of the connection is reserved for qualified organization buyers (QIBs), 15 per cent is allocated to non-institutional bidders, and astatine slightest 35 per cent is for retail investors.

Share allotment is expected to beryllium finalised connected Wednesday, June 26, and they could beryllium listed connected the BSE and the NSE connected Friday, June 28.

2. Stanley IPO subscription status

Stanley IPO saw a cumulative subscription of 1.44 times connected Day 1, receiving bids for 1,47,04,520 shares against 1,02,41,507 offered.

The retail and non-institutional investors (NIIs) segments were afloat subscribed, portion the QIB information saw a decent demand.

According to speech data, the NIIs conception saw a subscription of 2.01 times, receiving bids for 44,81,760 shares against 22,24,719 offered. On the different hand, the retail conception witnessed a subscription of 1.81 times, receiving bids for 93,81,920 shares against 51,91,011 offered. The QIB information was subscribed 0.30 times, with a bid for 8,40,840 shares against 28,25,777 offered connected Day 1.

3. Shareholding pattern

After the issue, the promoter and promoter group's shareholding successful the institution volition driblet to 56.81 per cent from 67.36 per cent earlier.

On the different hand, the involvement of the nationalist and employees volition summation to 43.19 per cent from 32.64 per cent earlier.

4. Objects of the caller issue

The institution intends to usage the nett proceeds to unfastened caller stores nether the formats of “Stanley Level Next", “Stanley Boutique", and “Sofas & More by Stanley".

Some of the nett proceeds volition beryllium utilized to renovate existing stores nether the formats of “Stanley Level Next," “Stanley Boutique," and “Sofas & More by Stanley."

They besides privation to unfastened immoderate anchor stores.

5. The company's finances

The company's gross has seen a sustained emergence since FY21. According to the company's RHP (red herring prospectus), its gross from operations for FY21 stood astatine ₹195.78 crore, which roseate to ₹292.20 crore successful FY22. For 2023, the institution earned ₹419 crore successful gross from operations. For the archetypal 9 months of FY24, the company's gross from operations stood astatine ₹313.31 crore.

Profit for FY21, FY22 and FY23 stood astatine ₹1.03 crore, ₹21.35 crore and ₹32.9 crore, respectively. For 9 months of FY24, the company's nett was ₹19.8 crore.

6. Competitive strength

Experts constituent retired that Stanley Lifestyles is the largest and fastest-growing luxury and super-premium furnishings marque successful India.

"Stanley Lifestyles is simply a super-premium and luxury furnishings marque successful India and among the fewer home-grown super-premium and luxury user brands successful India operating astatine standard successful presumption of manufacturing arsenic good arsenic retail operations and the largest successful presumption of the fig of stores and the fastest successful presumption of gross maturation increasing marque successful the furnishings segment," said HDFC Securities.

HDFC pointed retired that the company's extended pan-India retail beingness crossed assorted store formats allows it to people assorted markets, ensuring enhanced marque visibility. As of January 31, 2024, it has the largest retail outlet web offering luxury furnishings products successful India. It retails its furnishings products chiefly done its 3 store formats, each catering to antithetic segments of the market, specified arsenic ultra-luxury, luxury, and super-premium.

7. Industry overview

The furnishings manufacture is simply a analyzable ecosystem which involves aggregate stakeholders and a dynamic proviso chain.

From earthy worldly suppliers to furnishings manufacturers, retailers, distributors, designers, and customers, each stakeholder plays a important relation successful the design, production, distribution, and merchantability of furnishings products.

HDFC Securities observed astir 45000+ furnishings manufacturers successful India, according to a 2021 study by the Indian Furniture Manufacturers Association (IFMA).

"The roar successful the existent property marketplace successful India has enabled the furnishings marketplace successful India to acquisition a precocious maturation trajectory. Rapid urbanisation, high-rising incomes, and an expanding displacement towards tier-level cities are causing lodging properties to flourish crossed India," said HDFC Securities.

According to the brokerage firm, the luxury, super-premium furnishings and location goods marketplace is poised to triple its size by FY27, reaching $4.8 billion.

8. The company's cardinal management

Sunil Suresh, 58, is the managing manager of the company. He has been with the institution arsenic a promoter and a manager since October 11, 2007. Before the incorporation of the company, helium was associated with Stanley Seating, which manufactured car spot leather upholstery.

Shubha Suni, 49, is the full-time director. She holds a certificate of completion of the INSEAD enactment programme for elder executives. She has been associated with the institution arsenic a promoter and manager since October 11, 2007. Before the incorporation of the company, she was associated with Stanley Seating, which manufactured car spot leather upholstery.

As per the company's RHP, but for Sunil Suresh and Shubha Sunil who are spouses and Sonakshi Sunil, who is their daughter, nary of the company's directors, cardinal managerial unit and elder absorption unit are related to each other.

9. Key risks

The institution does not ain the marque sanction “Stanley", registered successful the sanction of 1 of its promoters, Sunil Suresh.

The company's concern is highly babelike connected selling sofas and recliners. According to the RHP, variations successful request and changes successful user penchant for our sofa and recliner products could wounded its business, results of operations and fiscal condition

Besides, the institution does not person immoderate listed manufacture peers successful India oregon abroad, and it whitethorn beryllium hard to benchmark and measure its fiscal show against different operators operating successful the aforesaid industry.

A important information of its stores are located successful confederate India, and immoderate adverse developments affecting its operations successful these regions could wounded its business.

10. Stanley Lifestyles GMP

Stanley Lifestyles IPO's past grey marketplace premium (GMP) is ₹165, according to investorgain.com. Considering the precocious terms set of the contented astatine ₹369, Stanley Lifestyles IPO's estimated listing terms is ₹534, a premium of 44.72 per cent.

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Disclaimer: The views and recommendations supra are those of idiosyncratic analysts, experts, and brokerage firms, not Mint. We counsel investors to consult certified experts earlier making immoderate concern decisions.

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Published: 22 Jun 2024, 08:47 AM IST