Stanley Lifestyles Aims to Raise Rs 537 Crore via IPO

Luxury furniture brand Stanley Lifestyles plans to raise Rs 537 crore through an IPO that opens on June 21. The offering includes equity shares and an Offer For Sale component. Funds will be used for new stores, renovations, and machinery purchases. The company's revenue grew to Rs 419 crore in FY23.

Stanley Lifestyles, a leading luxury furniture brand, announced its intent to raise Rs 537 crore through an initial public offering (IPO) starting on June 21. The IPO, set within a price band of Rs 351 to Rs 369 per share, will close on June 25. Anchor investor bidding will commence on June 20.

The offering combines a Rs 200 crore fresh equity issuance and a Rs 337 crore Offer For Sale (OFS) by current shareholders. The proceeds of Rs 90.13 crore will fund new store openings, while Rs 39.99 crore and Rs 10.04 crore are earmarked for anchor store setups and existing store renovations respectively.

An additional Rs 8.18 crore will finance capital expenditures, including new machinery for Stanley and its subsidiary, SOSL (Stanley OEM Sofas Ltd). The IPO allocates 50% of the issue size to qualified institutional buyers (QIBs), 35% to retail investors, and 15% to non-institutional investors. Minimum bid size is 40 shares.

Founded in Bengaluru, Stanley Lifestyles is renowned for its diversified portfolio in various price segments, including super-premium, luxury, and ultra-luxury categories. The company operates two manufacturing facilities in Bengaluru, boasting a revenue increase to Rs 419 crore for FY23, up from Rs 292.20 crore the previous year. Net profit also rose significantly to Rs 34.98 crore from Rs 23.22 crore year-on-year.

Book running lead managers for the issue include Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets Ltd. Post-issue, the equity shares will be listed on the BSE and NSE.

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