Stanley Lifestyles Limited is coming up with an IPO worth INR 537.02 crores, consisting of a fresh issue of shares worth INR 200 crores and an offer for sale worth INR 337.02 crores. The company aims to invest in new and existing stores, machinery, and general corporate purposes.
Stanley Lifestyles IPO – Important Dates
| Stanley Lifestyles Limited IPO Date | June 21, 2024 to June 25, 2024 |
| Stanley Lifestyles Limited IPO Listing Date | June 28, 2024 |
| Stanley Lifestyles Limited IPO Price | INR 351-369 per share |
| Stanley Lifestyles Limited IPO Lot Size | 40 Shares |
| Stanley Lifestyles Limited IPO Total Issue Size | INR 537.02 crore |
| Stanley Lifestyles Limited IPO Basis of Allotment | June 26, 2024 |
| Stanley Lifestyles Limited IPO Initiation of Refunds | June 27, 2024 |
| Stanley Lifestyles Limited IPO Credit of Shares to Demat | June 27, 2024 |
| Stanley Lifestyles Limited IPO Issue Type | Book Built Issue IPO |
| Stanley Lifestyles Limited IPO Listing At | BSE, NSE |
Stanley Lifestyles Limited IPO – Company Profile
Stanley is India’s leading super-premium and luxury furniture brand, which is notable for large-scale manufacturing and retail. We rank fourth in home furniture revenue and uniquely span super-premium, luxury, and ultra-luxury segments.
Retailing under the “Stanley” brand, they’ve built recognition and loyalty through quality products and campaigns like “Beautiful Living” and “Luxury Unlimited.” Their customers act as ambassadors, promoting Stanley via testimonials and word-of-mouth advertising.
They design, manufacture, and retail furniture through a pan-India network of company and franchise stores. Their integrated model ensures quality, and their handcrafted products leverage skilled craftsmanship, premium materials, and unique designs for a luxury experience.
Stanley Lifestyles Ltd IPO Fundamental Analysis
Stanley Lifestyles’s financial analysis reveals a mixed performance. Revenue increased annually but fell short for the current year. Profitability, EPS, and RoNW declined while liabilities grew, indicating potential challenges for investors.
- Revenue Trend: The revenue increased from ₹2,922.04 million in March 2022 to ₹4,189.98 million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 3,133.11 million, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has risen, indicating increased reliance on debt financing.
- Profitability: The profit after tax (PAT) has decreased from ₹232.19 million in March 2022 to ₹186.97 million by December 2023. This decline in profitability could be a source of concern for investors.
- Earnings per Share (EPS): The diluted EPS has also decreased from ₹4.14 in March 2022 to ₹3.83 by December 2023, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 10.69% to 8.34%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a decrease in the Inventory Turnover Ratio, which might suggest slow sales or inefficient inventory management.
Stanley Lifestyles IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in million) | 2,922.04 | 4,189.98 | 3,133.11 |
| Equity (₹ in million) | 2,056.02 | 2,237.99 | 2,481.90 |
| Expenses (₹ in million) | 2,658.19 | 3,792.22 | 2,975.66 |
| Profit and Loss After Tax (₹ in million) | 232.19 | 349.77 | 186.97 |
| RoNW (%) | 10.69 | 15.18 | 8.34 |
| NAV per Equity Share (₹) | 38.71 | 41.96 | 45.97 |
| Diluted EPS only (₹) | 4.14 | 6.37 | 3.83 |
| Total Assets (in millions) | 4,221.45 | 4,581.86 | 5,815.39 |
| Total Liabilities (in millions) | 2,165.43 | 2,343.87 | 3,333.49 |
| Debt-Equity Ratio | 0.63 | 0.68 | 0.86 |
| Current Ratio (in times) | 2.23 | 2.18 | 1.56 |
| Inventory Turnover Ratio | 1.35 | 1.71 | 1.10 |
Stanley Lifestyles Limited IPO Peer Comparison
Stanley Lifestyles Limited offers super-premium, luxury, and ultra-luxury furniture with a retail presence three times larger than its nearest competitor. Due to their scale, their unmatched, vertically integrated model controls all processes, with no direct industry comparison.
Stanley Lifestyles IPO Objective
The main objective of Stanley Lifestyles Limited is to invest in subsidiaries to open new stores, anchor stores, and renovate existing ones. Additionally, funding capital expenditure for machinery is essential.
- Investment in certain Subsidiaries:
- Opening of New Stores by such Subsidiaries under the Formats of “Stanley Level Next,” “Stanley Boutique,” and “Sofas & More by Stanley”: The company intends to utilize INR 9.01 crores from the Net Proceeds to establish 24 New Stores across Delhi, Tamil Nadu, Telangana, and Maharashtra, catering to luxury, premium, and mid-high categories.
- Opening Anchor Stores by such Subsidiaries: The company plans to utilize INR 4 crores from the Net Proceeds to establish three Anchor Stores, combining luxury products at affordable prices, across Delhi, Telangana, and Maharashtra through three subsidiaries.
- Renovation of Existing Stores under the Formats of “Stanley Level Next,” “Stanley Boutique,” and “Sofas & More by Stanley” by such Subsidiaries: The company aims to use INR 1 crore from Net Proceeds to renovate 15 Existing Stores across Delhi, Tamil Nadu, Telangana, Maharashtra, and Karnataka through five Subsidiaries between Fiscal years 2025 and 2027.
- Funding the capital expenditure requirements for the purchase of new machinery and equipment by the company and our Material Subsidiary, Stanley OEM Sofas Limited: Their Company and Stanley OEM Sofas Limited plan to invest 0.67 crore from Net Proceeds to purchase new machinery and equipment for manufacturing facilities in Bengaluru. This investment aims to enhance manufacturing capabilities.
- General corporate purposes: The company plans to deploy the balance of the funds towards general corporate purposes, including strategic initiatives, expansion, exigencies, salary, rent, IT upgrades, raw materials, vendor services, electricity charges, and advertising expenses.
Stanley Lifestyles IPO Risks And Challenges
Stanley Lifestyles Limited’s risks include trademark registration delays, dependence on sofa sales amidst competition, raw material supply interruptions, price volatility, and supplier payment defaults, potentially impacting the company’s business and finances.
- Although they’ve entered Assignment Deeds, the “Stanley” trademark remains registered under a Promoter’s name. Delays or breaches in registration or co-existence agreements could impact their business and finances.
- Their business heavily relies on sofa and recliner sales, and it is subject to competition, raw material costs, and changing customer preferences. Failure to adapt could lead to inventory obsolescence and pricing pressure, affecting financial performance.
- Their operations rely on the uninterrupted supply of imported raw materials, especially leather from Europe. The lack of long-term contracts exposes us to price volatility, and defaults in payments to suppliers could disrupt operations.
Stanley Lifestyles Ltd IPO – Industry & Market Potential
Affluent households are projected to grow by 10% annually, reaching 13 million by 2027, driving 55% of luxury consumption. UHNWIs are expected to reach 19,000, with rising income driving discretionary spending.
Indian retail is shifting towards premiumization, with discretionary retail projected to reach US$381 billion by 2025. Rising discretionary spending will drive demand for luxury goods, while organized retail is expected to capture 30% of the market by 2027.
The luxury home interiors market, valued at US$3.8 billion, is expected to reach US$5.6 billion. Affluent consumers seek unique designs, driving demand for luxury products with distinct aesthetics and rare materials.
Stanley Lifestyles Limited IPO – Type of Offer
Stanley Lifestyles Limited includes a fresh issue worth INR 200 crores and an offer to sell 337.02 crore shares by the existing shareholders.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 200 crores. The company plans to utilize it to invest in new and existing stores, machinery, and general corporate purposes.
- Offer for sale: The IPO consists of an offer for sale worth INR 337.02 crores. The following are the details of the existing shareholder, who is also the promoter selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Sunil Suresh | 1,182,000 |
| Shubha Sunil | 1,182,000 |
Stanley Lifestyles IPO Offer Size
The offer size of Stanley Lifestyles Limited is INR 537.02 crores, consisting of a fresh issue worth INR 200 crores and an offer for sale worth INR 337.02 crores. The company seeks funds to invest in new and existing stores, machinery, and general corporate purposes.
Stanley Lifestyles Limited IPO Allotment Structure
Stanley Lifestyles Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Stanley Lifestyles Limited IPO?
To apply for the Stanley Lifestyles Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Stanley Lifestyles Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Stanley Lifestyles Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Stanley Lifestyles Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Stanley Lifestyles Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Stanley Lifestyles Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Stanley Lifestyles Limited IPO:
● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Stanley Lifestyles Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE and NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Stanley Lifestyles Limited Ltd IPO Offer Registrar
The registrar for the Stanley Lifestyles Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Selenium, Tower B, Plot No.31-32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Stanley Lifestyles Limited Limited IPO – FAQs
1. What is the allotment date of Stanley Lifestyles Limited?
The allotment date of the Stanley Lifestyles Limited IPO is June 26, 2024.
2. What is the price band of the Stanley Lifestyles Limited IPO?
The price band of the issue is INR 351-369 per share.
3. What is the size of the Stanley Lifestyles Limited IPO?
The offer size of Stanley Lifestyles Limited is INR 537.02 crores, consisting of a fresh issue worth INR 200 crores and an offer for sale worth INT 337.02 crores. The company seeks funds to invest in new and existing stores, machinery, and general corporate purposes.
4. What is the listing date of the Stanley Lifestyles Limited IPO?
The listing date of Stanley Lifestyles Limited’s IPO is June 28, 2024.
