Overview of Stanley Lifestyles IPO
Stanley Lifestyles is set to enter the stock market with a highly anticipated IPO, offering a combination of fresh issue and offer for sale. The total issue size stands at Rs 537.02 crores, comprising a fresh issue of 0.54 crore shares worth Rs 200.00 crores and an offer for sale of 0.91 crore shares aggregating Rs 337.02 crores. This IPO opens for subscription on June 21, 2024, and closes on June 25, 2024, with allotment finalization on June 26, 2024, and listing expected on June 28, 2024.
Company Profile
History and Market Presence
Founded in 2007, Stanley Lifestyles has grown into a leading player in the lifestyle and furniture industry. The company is renowned for its high-quality products ranging from luxurious furniture to everyday essentials. With a robust distribution network and a strong brand presence, Stanley Lifestyles caters to a diverse clientele, positioning itself as a market leader.
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Product Portfolio
Stanley Lifestyles offers an extensive range of products, including:
- Luxury Furniture: High-end sofas, recliners, and bedroom sets.
- Office Furniture: Ergonomic chairs, desks, and storage solutions.
- Home Décor: Stylish lighting, rugs, and accessories.
IPO Details
Issue Structure
The Stanley Lifestyles IPO is divided into two main components:
- Fresh Issue: 0.54 crore shares, raising Rs 200.00 crores.
- Offer for Sale: 0.91 crore shares, raising Rs 337.02 crores.
Price Band and Investment Requirements
The price band for this IPO is set between ₹351 and ₹369 per share. Investors can apply for a minimum lot size of 40 shares, equating to an investment of ₹14,760. For sNII, the minimum investment is 14 lots (560 shares) totaling ₹206,640, and for bNII, it is 68 lots (2,720 shares), amounting to ₹1,003,680.
Important Dates
- Opening Date: June 21, 2024
- Closing Date: June 25, 2024
- Allotment Finalization: June 26, 2024
- Listing Date: June 28, 2024
Objects of the Issue (Stanley Lifestyles IPO Objectives)
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.
Market Analysis
Industry Outlook
The lifestyle and furniture market in India is poised for significant growth, driven by increasing disposable incomes and a shift towards premium products. Stanley Lifestyles is well-positioned to capitalize on these trends with its strong brand and diverse product offerings.
Growth Prospects
- Expansion Plans: The company plans to expand its production capacity to meet rising demand.
- New Product Lines: Introduction of innovative products to cater to changing consumer preferences.
- Market Penetration: Increasing market reach through strategic partnerships and retail expansion.
Financial Performance
Key Financial Metrics
The market capitalization of Stanley Lifestyles IPO is Rs 2103.94 Cr.
KPI as of December 31, 2023.
| KPI | Values |
|---|---|
| ROE | 7.92% |
| ROCE | 8.63% |
| Debt/Equity | 0.86 |
| RoNW | 8.34% |
| P/BV | 8.03 |
| PAT Margin (%) | 5.97 |
Recent Financial Results
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 581.54 | 458.19 | 422.15 | 346.52 |
| Revenue | 322.29 | 425.62 | 297.76 | 201.71 |
| Profit After Tax | 18.70 | 34.98 | 23.22 | 1.92 |
| Net Worth | 237.21 | 216.50 | 199.76 | 182.93 |
| Reserves and Surplus | 225.83 | 207.88 | 191.31 | 174.96 |
| Total Borrowing | 30.90 | 9.37 | 6.09 | 0.25 |
Risk Factors
Market Competition
Stanley Lifestyles faces intense competition from both domestic and international brands, which could impact market share and profitability.
Economic Volatility
Economic downturns could affect consumer spending, impacting sales and revenue growth.
Operational Challenges
Managing supply chain disruptions and scaling production to meet demand are critical challenges for the company.
How to Apply for Stanley Lifestyles IPO
Step-by-Step Guide for Retail Investors
- Open a Demat Account: Ensure you have a functional Demat account.
- Access Trading Platform: Log in to your broker’s trading platform.
- Fill IPO Application: Complete the application form with necessary details.
- Bid within Price Band: Choose your bid price and the number of lots.
- Approve UPI Mandate: Approve the UPI mandate to block the funds.
For Institutional Investors
Institutional investors should coordinate with their financial advisors and follow standard protocols for IPO applications.
Expert Opinions
[Dilip Davda]  The company is one of the leading player in premium – luxury furniture. It marked steady growth in its top and bottom lines between FY21 and FY23. Based on FY24 annualized earnings, the issue appears aggressively priced. Well-informed/cash surplus investors may park moderate funds for the long term
Long-Term Prospects
Strategic Vision
Stanley Lifestyles aims to leverage the IPO proceeds to strengthen its market position, expand its product offerings, and enhance operational efficiency. The company’s long-term strategy focuses on sustainable growth, innovation, and customer satisfaction.
Future Growth Drivers
- Technological Advancements: Adoption of cutting-edge manufacturing technologies.
- Market Expansion: Entering new geographic markets and segments.
- Customer Experience: Enhancing customer service and engagement through digital platforms.
Conclusion
The Stanley Lifestyles IPO presents a promising investment opportunity with its strong market presence, strategic growth plans, and solid financial performance. Potential investors should consider the associated risks and conduct thorough due diligence before making an investment decision.