Stanley Lifestyles eyes Rs 537 crore via IPO, issue to open on June 21

Luxury furniture brand Stanley Lifestyles on Friday said it is looking to raise Rs 537 crore through its initial share-sale, which will open for public subscription on June 21.

The Initial Public Offering (IPO), with a price band of Rs 351 to Rs 369 per share, will conclude on June 25. The bidding for anchor investors will open for a day on June 20.

The IPO comprises fresh issuance of equity shares worth Rs 200 crore and an Offer For Sale (OFS) component of 91.33 lakh equity shares by the company's promoters and other shareholders to the tune of Rs 337 crore at the upper end of the price band.

The net proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company for expenditure for opening the new stores, Rs 39.99 crore expenditure for opening the anchor stores and Rs 10.04 crore expenditure for renovation of existing stores.

Funds to the tune of Rs 8.18 crore for funding the capital expenditure requirements for the purchase of new machinery and equipment by the company and its material subsidiary, SOSL (Stanley OEM Sofas Ltd) and for general corporate purposes.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Moreover, investors can bid for a minimum of 40 equity shares and in multiples of 40 equity shares thereafter.

The Bengaluru-based Stanley Lifestyles is a luxury furniture brand and it is among the few Indian companies operating in various price categories, including super-premium, luxury, and ultra-luxury, through its multiple brands.

The company operates two manufacturing facilities in Bengaluru.For FY23, the company's revenue from operations rose to Rs 419 crore from Rs 292.20 crore a year ago, while net profit increased to Rs 34.98 crore in FY23 against Rs 23.22 crore a year back.

Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets Ltd are the book running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.