Stanley Lifestyles shares make decent listing gains; here's what investors should do now

Stanley Lifestyles amid strong market momentum made stupendous listing gains on Friday after garnering a strong response for its IPO. Against the IPO issue price of Rs 369, the stock on the BSE made listing gains of over 35 per cent at Rs 499. Meanwhile, on the NSE, the stock started trade at Rs 494.95, a premium of over 34 per cent.

Meanwhile, in early trade on the BSE, the stock hit levels of Rs 510 per share on the BSE.

Here's what investors should do post-listing of Stanley Lifestyles 

Shivani Nyati, Head of Wealth at Swastika Investmart said Stanley  made a notable debut on the stock exchanges, listing at Rs. 494.95 per share. This translates to a significant 34.13% gain over its issue price of Rs. 369. While this performance is undoubtedly positive, it falls short of pre-listing expectations that likely anticipated an even higher premium due to the overwhelming investor response.

The strong listing signifies investor confidence in Stanley Lifestyles' established brand, diverse product portfolio, and consistent financial performance. However, the high IPO valuation  and identified risks, such as dependence on sofa and recliner sales and geographical concentration, warrant careful consideration.

Existing investors may hold their shares with a suggested stop loss of 450.

Stanley Lifestyles IPO details

The net proceeds from the fresh issue will be deployed towards expenditure for opening the new stores, opening the anchor stores and for renovation of existing stores.

Stanley Lifestyles is India’s largest super-premium and luxury furniture brand with a market share of 5.61% in terms of revenue. It is also among the few home-grown super-premium and luxury consumer brands in India operating at scale in both manufacturing and retail operations.