Stanley Lifestyles Limited IPO (Stanley IPO) Review –
Stanley Lifestyles Limited IPO (Stanley IPO) is set to open from 21st June 2024 to 25th June 2024. This article will analyze the financials , strengths and weaknesses of the DEE Development Engineers Limited IPO (DEE Piping Systems IPO). Keep scrolling below to read more!
Stanley Lifestyles Limited IPO (Stanley IPO) Overview –
Established in 2007, Stanley Lifestyles Limited designs and manufactures super-premium, luxury and ultra-luxury furniture and sells it through its brand “Stanley”.
The company’s product list can be divided into the following categories:
- Seating: This includes the design, production and sale of seating furniture such as sofas, sofa beds, recliners, dining chairs, poufs, bar stools, and cushions.
- Cased goods: These products have a solid casing, usually made of wood; they include coffee tables, dining tables, end tables, and consoles.
- Kitchens and cabinets: These include kitchens and cabinetry products in a variety of materials, finishes, and styles. These include kitchens, wardrobes, laundry/utility cupboards, bar cabinets, shoe racks, prayer cupboards, and bedside tables.
- Mattresses and beds: This includes the design, manufacture, and sale of a range of bed frames, mattresses, pillows and accessories.
- Automotive and other: This includes the design and manufacture of shoes that can be customized to customer specifications and are available in a range of sizes, including half sizes shoes. The company also offers leather seat covers for car brands. While the company manufactures all of its own products, ancillary products such as lighting and switches are generally imported and sold under private labels. The company also sells carpets that are sourced locally from other manufacturers and sold under private labels.
As of December 31, 2023, the Company operated 38 “Company-owned and Company-operated” or “COCO” stores, all located in the major metropolitan cities of Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad, and 24 “Franchisee-owned and Franchisee-operated” or “FOFO” stores in 21 cities across 11 Indian states and Union Territories.
The Company’s product development department is spread over approximately 15,000 square feet at its manufacturing city in Bengaluru, Karnataka and as of December 31, 2023, the company had 778 employees.
They are the fourth largest player in the home furniture segment in India in terms of revenue in Fiscal 2022. (Source: RedSeer Report). Almost all of the products under their “Stanley Level Next” and “Stanley Boutique” brands include handcrafted elements.
Stanley Lifestyles Limited IPO (Stanley IPO) Synopsis-
Stanley Lifestyles Limited IPO (Stanley IPO) is set to be open from 21st June 2024 to 25th June 2024, offering combination of fresh issue of 0.54 crore shares aggregating to Rs 200.00 crores and offer for sale of 0.91crore shares aggregating to Rs 337.02 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs. 537.02 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 21st June 2024 |
| Closing Date | 25th June 2024 |
| Lot Size | 40 Shares |
| Face Value | Rs. 2 |
| IPO Size | Rs. 537.02 Cr |
| Fresh Issue | Rs. 200 Cr |
| IPO Price Range | Rs. 351-369 |
| Min. Investment | Rs. 14,760 |
| Offer for Sale (OFS) | Rs. 337.02 Cr |
| Basis of Allotment | 26th June 2024 |
| Refunds | 27th June 2024 |
| Listing Date | 28th June 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Stanley Lifestyles Limited IPO (Stanley IPO) Book Running Lead Managers –
- Axis Capital Limited
- ICICI securities limited
- Jm Financial Limited
- SBI Capital Markets Limited
Stanley Lifestyles Limited IPO (Stanley IPO) Registrar to the offer –
The registrar for the Stanley Lifestyles Limited IPO (Stanley IPO) is Kfin Technologies limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company proposes to utilize the Net Proceeds towards the funding of the following objects:
- Expenditure for opening new stores under the formats of “Stanley Level Next”, “Stanley Boutique” and “Sofas & More by Stanley” (“New Stores”);
- Expenditure for opening anchor stores (“Anchor Stores”);
- Expenditure for the renovation of existing stores under the formats of “Stanley Level Next”, “Stanley Boutique” and “Sofas & More by Stanley” (“Existing Stores”);
- Funding the capital expenditure requirements for purchasing new machinery and equipment by the company and Material Subsidiary, SOSL; and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of Stanley Lifestyles Limited IPO (Stanley IPO) is Rs 2103.94 Cr.
KPI as of December 31, 2023.
| Earning Per Share (EPS): | ₹6.78per Equity Share |
| Price/Earning P/E Ratio: | 54.43 |
| Return on Net Worth (RoNW): | 8.34% |
| PAT Margin(%) | 5.97 |
Financial Status –
Stanley Lifestyles Limited IPO (Stanley IPO) revenue increased by 42.94% and profit after tax (PAT) rose by 50.64% between the financial year ending with March 31, 2023 and March 31, 2022.
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 418.99 | 292.20 | 195.78 |
| EBIDTA | 82.71 | 59.00 | 29.77 |
| PAT | 34.97 | 23.21 | 1.92 |
| Total Assets | 458.18 | 422.14 | 346.51 |
| Total Borrowings | 234.38 | 216.54 | 158.92 |
Peers of Stanley Lifestyles Limited IPO (Stanley IPO) –
N/A
Stanley Lifestyles Limited IPO (Stanley IPO) Strengths –
- Largest and fastest-growing luxury furniture brand in India.
- Comprehensive home solutions across multiple categories and price points.
- Pan-India presence with 62 strategically located stores.
- Focus on design-led product innovation with 88 new products in 2023.
- Vertically integrated manufacturer with skilled craftsmanship capabilities.
- Efficient business model delivering financial growth with 46.29% CAGR.
Stanley Lifestyles Limited IPO (Stanley IPO) Weakness –
- Brand “Stanley” ownership is not yet registered to Stanley Lifestyles.
- High dependency on sofas and recliners; 57.35% revenue in 2023.
- No listed industry peers for financial performance bench marking.
- Significant revenue from southern India; regional disruptions impact sales.
- Delays in key raw materials like leather may affect production.
- Limited leather suppliers: top 5 suppliers provide 89.01% of leather
Stanley Lifestyles Limited IPO (Stanley IPO) GMP Today –
Stanley IPO last GMP is ₹165, last updated Jun 22nd 2024. With the price band of 369.00, Stanley IPO’s estimated listing price is ₹534(cap price + today’s GMP). The expected percentage gain/loss per share is 44.72%.
Conclusion –
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
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