Stanley Lifestyles, the renowned luxury furniture brand, has officially initiated the process of making its mark on the stock market by submitting preliminary documents to the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO).
Stanley Lifestyles IPO comprises two primary components: a fresh issuance of equity shares valued at Rs 200 crore and an offer-for-sale (OFS) segment involving 91.33 lakh equity shares from the company’s promoters, investors, and other stakeholders, as detailed in the draft red herring prospectus (DRHP) unveiled just this Monday.
The OFS section encompasses the sale of 11.82 lakh shares each by the promoters, namely Sunil Suresh and Shubha Sunil, along with up to 55.44 lakh equity shares by Oman India Joint Investment Fund II. Furthermore, Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati are also participating with sales of up to 10 lakh shares and 2.25 lakh shares, respectively.
Stanley Lifestyles is also exploring the possibility of a pre-IPO placement, potentially raising up to Rs 40 crore. If this placement materializes, it may result in a reduction in the size of the fresh issue.
The anticipated net proceeds from the fresh issue, approximately Rs 90.13 crore, are earmarked for several strategic purposes. A significant portion, Rs 39.99 crore, is slated for the opening of anchor stores, while Rs 10.04 crore will be allocated to renovate existing stores. Additionally, funds amounting to Rs 8.18 crore will be utilized for capital expenditures, including the acquisition of new machinery and equipment for the company and its subsidiary, SOSL (Stanley OEM Sofas Ltd). Furthermore, a portion will be dedicated to general corporate needs.
Headquartered in Bengaluru, Stanley Lifestyles stands out as a premier luxury furniture brand with an impressive market share of 5.61 percent in terms of revenue. It distinguishes itself as one of the few homegrown luxury consumer brands operating at scale, boasting both manufacturing and retail capabilities. The company proudly operates two state-of-the-art manufacturing facilities, also located in Bengaluru.
The IPO process is being expertly managed by Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets Ltd, who have been appointed as the book running lead managers to ensure a smooth transition into the stock market.
Upon successful completion of the IPO, Stanley Lifestyles’ equity shares will be listed for trading on both the BSE and NSE, expanding its presence in the market.
As a testament to the company’s growth and financial strength, Stanley Lifestyles reported substantial year-over-year improvements. In FY23, its revenue from operations surged to Rs 419 crore, up from Rs 292.20 crore the previous year. Additionally, the company’s net profit saw a remarkable increase, reaching Rs 34.98 crore, compared to Rs 23.22 crore in the previous fiscal year.
Stanley Lifestyles is gearing up for an exciting journey into the world of stock trading, marking a significant milestone in its impressive journey in the luxury furniture industry. Stay tuned for further updates as this story unfolds.
About Stanley Lifestyles:
Stanley Lifestyles is a premium lifestyle manufacturing and retail enterprise dedicated to crafting exceptional products that possess the transformative ability to enhance the quality of life. Our expertise lies in the creation of exquisite furniture, stylish home decor, and tasteful accessories.
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