Unlisted shares of Stanley Lifestyles Ltd are trading Rs 162 higher in the grey market, expecting a 43.9 per cent listing gain from the public issue
Stanley Lifestyles IPO: The initial public offering (IPO) of luxury furniture brand Stanley Lifestyles Ltd opens for public subscription on Friday, June 21. The Rs 537-crore issue will conclude on June 25. The price band of the IPO has been fixed at Rs 351-Rs 369 per share.
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Stanley Lifestyles IPO Key Dates: Subscription, Allotment And Listing
The Stanley Lifestyles IPO will remain open between June 21 and June 25. Its allotment will likely be finalised on June 26, while its listing will take place on both BSE and NSE on June 28.
Stanley Lifestyles IPO: Price and Lot Size
The price band of the Stanley Lifestyles IPO has been fixed at Rs 351 to Rs 369 per share.
Investors need to apply for a minimum of 40 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,760 (40 (lot size) x Rs 369 (upper price band)).
Stanley Lifestyles IPO: Category-Wise Quota
The issue has been reserved up to 50 per cent for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs), and 35 per cent for retail investors.
Stanley Lifestyles IPO GMP Today
According to market observers, unlisted shares of Stanley Lifestyles Ltd are trading Rs 162 higher in the grey market as compared with its issue price. The Rs 162 grey market premium or GMP means the grey market is expecting a 43.9 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Stanley Lifestyles IPO: Should You Subscribe?
Recommending for ‘subscribe for long term’, brokerage firm Anand Rathi Research in an IPO note, said, “On the valuation front, at an upper band, the company is richly priced at a P/E of 60x post-issue of equity shares on a FY earnings basis, the company has no listed peers. We believe that the company has a scope for business improvement on the back of industry tailwinds, brand recall, and business scalability. We recommend a ‘Subscribe for long term’ rating to the IPO.”
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Stanley Lifestyles IPO: More Details
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.
A day before IPO, Stanley Lifestyles on June 20 said it has raised a little over Rs 161 crore from anchor investors.
Those who have been allotted shares are — SBI Mutual Fund (MF), Nippon India MF, ICICI Prudential MF, HDFC MF, Quant MF, Motilal Oswal MF, Bandhan MF, SBI Life Insurance Company and Max Life Insurance Company, according to a circular uploaded on BSE’s website.
Stanley Lifestyles has decided to allot 43.66 lakh equity shares to 16 funds at Rs 369 a piece, taking the aggregate transaction size to Rs 161.1 crore.
The net proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company towards expenditure for opening 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 purchase of new machinery and equipment by the company and its material subsidiary, SOSL (Stanley OEM Sofas Ltd) and for general corporate purposes.
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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.
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, as 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.
