Stanley Lifestyles Limited, a leading luxury manufacturer, has set the price range for its initial public offering (IPO) between RS.351 and Rs.369 per equity share with a face value of Rs.2 each. The IPO subscription period runs from Friday, June 21, to Tuesday, June 25, 2024. Allocation to anchor investors is scheduled for Thursday, June 20.
The floor price is set at 175.50 times the face value of the shares, while the cap price is at 184.50 times the face value. Investors can bid for a minimum of 40 shares and thereafter in multiples of 40 shares.
At the upper end of the price band, the price-to-earnings (P/E) ratio based on basic and diluted EPS for fiscal 2023 is high, at 57.93, compared to the Nifty 50 index P/E ratio of 22.18 as of June 12, 2024, according to a statement in The Financial Express.
Stanley Lifestyles is recognized as a leading super-premium and luxury furniture brand in India, ranking fourth in the home furnishings category for Fiscal 2023 by revenue. The IPO reserves not more than 50% of shares for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail investors.
Allotment of shares is anticipated to be finalized on Wednesday, June 26, with refunds beginning on Thursday, June 27. Shares are expected to be credited to investors' demat accounts the same day as the refund. Stanley Lifestyles shares are slated to be listed on both BSE and NSE on Friday, June 28.
The company reported a notable growth in revenue by 42.94% and profit after tax (PAT) by 50.64% for the fiscal years ended March 31, 2023, and March 31, 2022. Notably, Stanley Lifestyles has no direct peers listed in India or abroad, complicating comparative financial analysis within its industry.
Stanley Lifestyles IPO details
The Stanley Lifestyles IPO consists of a fresh issue of Rs.200 crore and an offer-for-sale (OFS) of 9,133,454 equity shares by existing promoters and shareholders.
In the OFS, Sunil Suresh and Shubha Sunil, the promoters, plan to sell up to 1,182,000 equity shares each. Other selling shareholders include Oman India Joint Investment Fund II (selling 5,544,454 equity shares), Kiran Bhanu Vuppalapat (selling 1,000,000 equity shares), and Sridevi Venkata Vuppalapati (selling 225,000 equity shares).
The proceeds from the fresh issue will be utilized to expand operations, including opening 24 new stores in Delhi, Tamil Nadu, Telangana, and Maharashtra through subsidiaries such as ABS Seating Pvt Ltd, Sana Lifestyles Ltd, Stanley Retail Ltd, Shrasta Décor Pvt Ltd, and Staras Seating Pvt Ltd, between 2025 and 2027.
Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and SBI Capital Markets Limited are the book-running lead managers for the Stanley IPO, with KFin Technologies Limited acting as the registrar.